Rio to cut jobs
#1
Forum Regular
Thread Starter
Joined: Oct 2010
Posts: 237
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.
Unfortunately a lot of these roles will go offshore, especially as IBM (Australia) have recently "right sized" their organisation by 1500 people.
#2
Forum Regular
Joined: Mar 2009
Location: Scarborough Beach, Perth
Posts: 243
Re: 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.
Unfortunately a lot of these roles will go offshore, especially as IBM (Australia) have recently "right sized" their organisation by 1500 people.
#3
Re: Rio to cut jobs
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
#4
BE Forum Addict
Joined: Apr 2008
Location: Epsom
Posts: 1,705
Re: Rio to cut jobs
$100m for a 10 year deal is pretty small
#5
Re: Rio to cut jobs
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
#6
BE Forum Addict
Joined: Apr 2008
Location: Epsom
Posts: 1,705
Re: Rio to cut jobs
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.
#7
Re: Rio to cut jobs
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.
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.
#8
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
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.
I lasted 1 month before I'd had enough and let my contract expire and moved on.
#9
Forum Regular
Thread Starter
Joined: Oct 2010
Posts: 237
Re: Rio to cut jobs
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.