Rio to cut jobs

Old Oct 22nd 2013, 9:13 am
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Default Rio to cut jobs

http://www.news.com.au/business/comp...-1226744598910

Unfortunately a lot of these roles will go offshore, especially as IBM (Australia) have recently "right sized" their organisation by 1500 people.
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Old Oct 22nd 2013, 9:18 am
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Default Re: Rio to cut jobs

Originally Posted by Icecube
http://www.news.com.au/business/comp...-1226744598910

Unfortunately a lot of these roles will go offshore, especially as IBM (Australia) have recently "right sized" their organisation by 1500 people.
I used to work with them and I saw the writing on the wall. That said, in a few years they will need employees back to fix the mess. I do not see how some functions will be outsourced to India and have any quality.
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Old Oct 22nd 2013, 9:49 am
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Default Re: Rio to cut jobs

Originally Posted by JOE2010
I used to work with them and I saw the writing on the wall. That said, in a few years they will need employees back to fix the mess. I do not see how some functions will be outsourced to India and have any quality.
Have to say though, the Rio back office side is known as not offering much quality as it is, so dont see if it can be worse
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Old Oct 24th 2013, 2:24 am
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Default Re: Rio to cut jobs

$100m for a 10 year deal is pretty small
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Old Oct 24th 2013, 2:30 am
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Default Re: Rio to cut jobs

Originally Posted by verystormy
Have to say though, the Rio back office side is known as not offering much quality as it is, so dont see if it can be worse
RT is the most inefficient large non-government organisation that I have ever dealt with. If they were in an industry that was not as stupidly profitable as mining, they would have gone out of business long ago
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Old Oct 24th 2013, 3:09 am
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Default Re: Rio to cut jobs

Originally Posted by Icecube
Unfortunately a lot of these roles will go offshore, especially as IBM (Australia) have recently "right sized" their organisation by 1500 people.
So this deal is with IBM Singapore, part of Global Process Services (GPS) and these roles (mostly HR processes) will likely all go to Philippines.
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Old Oct 24th 2013, 3:16 am
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Default Re: Rio to cut jobs

Originally Posted by sr71
$100m for a 10 year deal is pretty small
Suspiciously small, given they say it leads to 800 job losses.

That's not just outsourcing, that's downsizing "back office and transactional work". At a rough guess they will centralise the functions in india, and reduce what they actually do. That probably means more contractualisation and redundancies. It also probably means the urgency will go out of things - the organisation will become less efficient as a whole.

At a rough guess, I's say that Rio probably already has the word that Abbott will allow them to import cheap workers, the timeframe (2 months ago) looks 'interesting'. Cut the fly-in fly-out, pay the workers much less, and you can get away with more downtime. Provided you have top cover on that, it makes business sense to redefine the business downwards.
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Old Oct 24th 2013, 7:40 am
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Default Re: Rio to cut jobs

I worked for Comalco (RTZ subsiduary) for 6 months (IT support contractor) a few years ago and they were the most efficient help desk I've ever worked for untill after about 6 months they amalgamated with RTZ Coal and the effect was dramatic, management went from being highly efficient to shambolic and the moral at Comalco collapsed.
I lasted 1 month before I'd had enough and let my contract expire and moved on.
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Old Oct 24th 2013, 9:56 am
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Default Re: Rio to cut jobs

Originally Posted by verystormy
Have to say though, the Rio back office side is known as not offering much quality as it is, so dont see if it can be worse
A bit like BHPB with their CSC relationship. Every call incurs a costs to handle and as you would imagine it takes a lot of calls to get within sight of a person who may know some one who can help. Beyond that just a reason to pack the (un)Help desk with low cost labour.
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