Description: Two years after winning a contract to provide IT services to Hertz, IBM has moved much of that work from the debt-laden car rental giant’s technology center in Oklahoma City to India.
About 50 former IBM employees who worked on the Hertz contract in Oklahoma are now seeking assistance under the federal government’s Trade Adjustment Assistance program, according to documents obtained by InformationWeek.
“All production support/technical support for IBM on the Hertz account has been moved to India,” states an application for TAA assistance filed with the Department of Labor on behalf of IBM’s Hertz contract workers on Nov. 12, 2010. The application specifies the total number of workers affected as 50. Read rest of story
Questions for discussion:
- Do you feel IS outsourcing is a good policy for Hertz? Why? or Why not?
- Do companies need to make theses offshoring decisons with shareholders as the number one stakeholder in mind?
- Does this decison to offshore satisfy the shareholders?