Keane ends business relationship with IBM

GoPackGo

Diamond Member
Oct 10, 2003
6,521
598
126
Keane will no longer provide IBM Staffing

For the last five years IBM has been cutting the bill rates it pays to its vendors who provide employees to "augment" its staff.

The thing is, these are not short term contractors. These are people who have worked at IBM for Keane and others in the same position usually for many years. Some as many as 15 or more years.

Each year at least once the bill rate is cut by 5 percent, or more. This is then passed on to the people.

IBM now only wants to do business with companies who will promise a decreasing bill rate year after year.

Imagine making 40000 a year in 1999 and now making 30000 today with the prospect of only making less.
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
Originally posted by: GoPackGo
Keane will no longer provide IBM Staffing

For the last five years IBM has been cutting the bill rates it pays to its vendors who provide employees to "augment" its staff.

The thing is, these are not short term contractors. These are people who have worked at IBM for Keane and others in the same position usually for many years. Some as many as 15 or more years.

Each year at least once the bill rate is cut by 5 percent, or more. This is then passed on to the people.

IBM now only wants to do business with companies who will promise a decreasing bill rate year after year.

Imagine making 40000 a year in 1999 and now making 30000 today with the prospect of only making less.

Cool :cool: Where have you've been?

That's the new ideal American way modeled by the Republicans.

 

GoPackGo

Diamond Member
Oct 10, 2003
6,521
598
126
Originally posted by: dmcowen674
Originally posted by: GoPackGo
Keane will no longer provide IBM Staffing

For the last five years IBM has been cutting the bill rates it pays to its vendors who provide employees to "augment" its staff.

The thing is, these are not short term contractors. These are people who have worked at IBM for Keane and others in the same position usually for many years. Some as many as 15 or more years.

Each year at least once the bill rate is cut by 5 percent, or more. This is then passed on to the people.

IBM now only wants to do business with companies who will promise a decreasing bill rate year after year.

Imagine making 40000 a year in 1999 and now making 30000 today with the prospect of only making less.

Cool :cool: Where have you've been?

That's the new ideal American way modeled by the Republicans.


Where have I been? Living their grand experiment...that is until this last march.
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
Originally posted by: GoPackGo
Originally posted by: dmcowen674
Originally posted by: GoPackGo
Keane will no longer provide IBM Staffing

For the last five years IBM has been cutting the bill rates it pays to its vendors who provide employees to "augment" its staff.

The thing is, these are not short term contractors. These are people who have worked at IBM for Keane and others in the same position usually for many years. Some as many as 15 or more years.

Each year at least once the bill rate is cut by 5 percent, or more. This is then passed on to the people.

IBM now only wants to do business with companies who will promise a decreasing bill rate year after year.

Imagine making 40000 a year in 1999 and now making 30000 today with the prospect of only making less.

Cool :cool: Where have you've been?

That's the new ideal American way modeled by the Republicans.
Where have I been? Living their grand experiment...that is until this last march.

Personally affected? That's impossible according to the elitists on here.

No bites yet???
 

GoPackGo

Diamond Member
Oct 10, 2003
6,521
598
126
Originally posted by: dmcowen674
Originally posted by: GoPackGo
Originally posted by: dmcowen674
Originally posted by: GoPackGo
Keane will no longer provide IBM Staffing

For the last five years IBM has been cutting the bill rates it pays to its vendors who provide employees to "augment" its staff.

The thing is, these are not short term contractors. These are people who have worked at IBM for Keane and others in the same position usually for many years. Some as many as 15 or more years.

Each year at least once the bill rate is cut by 5 percent, or more. This is then passed on to the people.

IBM now only wants to do business with companies who will promise a decreasing bill rate year after year.

Imagine making 40000 a year in 1999 and now making 30000 today with the prospect of only making less.

Cool :cool: Where have you've been?

That's the new ideal American way modeled by the Republicans.
Where have I been? Living their grand experiment...that is until this last march.

Personally affected? That's impossible according to the elitists on here.

No bites yet???

Not only was I personally affected, but i know personally a hundred more that were as well.

Not only is it possible, it is still happening.
 

dmcowen674

No Lifer
Oct 13, 1999
54,889
47
91
www.alienbabeltech.com
Originally posted by: GoPackGo
Originally posted by: dmcowen674
Originally posted by: GoPackGo
Originally posted by: dmcowen674
Originally posted by: GoPackGo
Keane will no longer provide IBM Staffing

For the last five years IBM has been cutting the bill rates it pays to its vendors who provide employees to "augment" its staff.

The thing is, these are not short term contractors. These are people who have worked at IBM for Keane and others in the same position usually for many years. Some as many as 15 or more years.

Each year at least once the bill rate is cut by 5 percent, or more. This is then passed on to the people.

IBM now only wants to do business with companies who will promise a decreasing bill rate year after year.

Imagine making 40000 a year in 1999 and now making 30000 today with the prospect of only making less.

Cool :cool: Where have you've been?

That's the new ideal American way modeled by the Republicans.
Where have I been? Living their grand experiment...that is until this last march.

Personally affected? That's impossible according to the elitists on here.

No bites yet???

Not only was I personally affected, but i know personally a hundred more that were as well.

Not only is it possible, it is still happening.

Well where have you've been?

P&N full of people saying what has happened to you is a figment of your imagination.

What part of the Country are you in?
Have you found something yet? Have you checked thread at top of OT?
 

frankie38

Senior member
Nov 23, 2004
677
0
0
Its only a matter of time...IBM is going down. PWC may unfortunately outlive its parent.
 

ahurtt

Diamond Member
Feb 1, 2001
4,283
0
0
Not surprising really as IBM has been trimming a lot of fat in the last couple years since Gerstner left and Palmisano stepped up. 10's of thousands of people have been laid off globally as it becomes more and more crucial to keep costs under control due to cheap international labor. On average I'd say that most contractors make more money than their regular IBM full time employees of comparable skill / responsibility levels. There is more of a shift to fill positions with regular IBM employees as opposed to outside contractors. . .why? Because contractors cost more.
 

GoPackGo

Diamond Member
Oct 10, 2003
6,521
598
126
Originally posted by: dmcowen674
Originally posted by: GoPackGo
Originally posted by: dmcowen674
Originally posted by: GoPackGo
Originally posted by: dmcowen674
Originally posted by: GoPackGo
Keane will no longer provide IBM Staffing

For the last five years IBM has been cutting the bill rates it pays to its vendors who provide employees to "augment" its staff.

The thing is, these are not short term contractors. These are people who have worked at IBM for Keane and others in the same position usually for many years. Some as many as 15 or more years.

Each year at least once the bill rate is cut by 5 percent, or more. This is then passed on to the people.

IBM now only wants to do business with companies who will promise a decreasing bill rate year after year.

Imagine making 40000 a year in 1999 and now making 30000 today with the prospect of only making less.

Cool :cool: Where have you've been?

That's the new ideal American way modeled by the Republicans.
Where have I been? Living their grand experiment...that is until this last march.

Personally affected? That's impossible according to the elitists on here.

No bites yet???

Not only was I personally affected, but i know personally a hundred more that were as well.

Not only is it possible, it is still happening.

Well where have you've been?

P&N full of people saying what has happened to you is a figment of your imagination.

What part of the Country are you in?
Have you found something yet? Have you checked thread at top of OT?

I got a new job in February and left them behind.

I am in Minnesota. Contractors are looking at leaving in droves.
 

GoPackGo

Diamond Member
Oct 10, 2003
6,521
598
126
Originally posted by: ahurtt
Not surprising really as IBM has been trimming a lot of fat in the last couple years since Gerstner left and Palmisano stepped up. 10's of thousands of people have been laid off globally as it becomes more and more crucial to keep costs under control due to cheap international labor. On average I'd say that most contractors make more money than their regular IBM full time employees of comparable skill / responsibility levels. There is more of a shift to fill positions with regular IBM employees as opposed to outside contractors. . .why? Because contractors cost more.

That is not true.

Contractors make 1/3 to 1/2 as much as regular employees with much fewer benefits.

In addition, they are treated by many regulars as "scum"
 

Genx87

Lifer
Apr 8, 2002
41,091
513
126
Originally posted by: GoPackGo
Originally posted by: dmcowen674
Originally posted by: GoPackGo
Keane will no longer provide IBM Staffing

For the last five years IBM has been cutting the bill rates it pays to its vendors who provide employees to "augment" its staff.

The thing is, these are not short term contractors. These are people who have worked at IBM for Keane and others in the same position usually for many years. Some as many as 15 or more years.

Each year at least once the bill rate is cut by 5 percent, or more. This is then passed on to the people.

IBM now only wants to do business with companies who will promise a decreasing bill rate year after year.

Imagine making 40000 a year in 1999 and now making 30000 today with the prospect of only making less.

Cool :cool: Where have you've been?

That's the new ideal American way modeled by the Republicans.


Where have I been? Living their grand experiment...that is until this last march.

I think you answered your own question.
If you dont like the compensation provided for by an employer find another one. This is the most basic concept of an open market.

I didnt like the compensation practices of my former employer so I left. Let them get what they pay for.

edit: I see you live in MN, I do too and as you know the job market here is pretty solid for workers :)
 

bozack

Diamond Member
Jan 14, 2000
7,913
12
81
Interesting,

I used to subcontract for IBM, through Keane who then picked me up from a small firm in NJ called "Provision Solutions" at the time, they changed to Infinity consulting after a year of my being with them and that is when I decided to jump ship....

Hopped on over to Randstad which wasn't much better but at least after working some hours I got some vaca...

I say good for Keane, IBM through their Global Services division has been trying to slash pay for years now and it is the worst for their contractors...they give co-employment a whole new meaning.

IBM SUX
 

bozack

Diamond Member
Jan 14, 2000
7,913
12
81
Originally posted by: GoPackGo
Originally posted by: ahurtt
Not surprising really as IBM has been trimming a lot of fat in the last couple years since Gerstner left and Palmisano stepped up. 10's of thousands of people have been laid off globally as it becomes more and more crucial to keep costs under control due to cheap international labor. On average I'd say that most contractors make more money than their regular IBM full time employees of comparable skill / responsibility levels. There is more of a shift to fill positions with regular IBM employees as opposed to outside contractors. . .why? Because contractors cost more.

That is not true.

Contractors make 1/3 to 1/2 as much as regular employees with much fewer benefits.

In addition, they are treated by many regulars as "scum"

This is the truth,

FTE IBMers would pull in about 40-50K for field and deskside roles (knew a woman with the company upwards of 20+ years making just about 50K, passed up for promotion over promotion because they were too cheap and it cost them less to promote the young brownnoser)...

Contractors ranged anywhere from 37K-45K for the same position only IBM wasn't responsible for any bene's which saved them a bundle...plus they could cut you at any time.

The only problem was that on the whole the FTE IBM employees were complete idiots, their contractors upstaged them at every juncture and because IBM wasn't willing to pay decent salaries the contractors had little to no motivation to go full time with IBM, plus IBM had a real stigma about transitioning someone from contract to perm...they would rather try to pick you up with a contract aquisition where they could cut your pay after a few months/years...

if you cannot guess I really dislike IBM.
 

ahurtt

Diamond Member
Feb 1, 2001
4,283
0
0
Originally posted by: GoPackGo
Originally posted by: ahurtt
Not surprising really as IBM has been trimming a lot of fat in the last couple years since Gerstner left and Palmisano stepped up. 10's of thousands of people have been laid off globally as it becomes more and more crucial to keep costs under control due to cheap international labor. On average I'd say that most contractors make more money than their regular IBM full time employees of comparable skill / responsibility levels. There is more of a shift to fill positions with regular IBM employees as opposed to outside contractors. . .why? Because contractors cost more.

That is not true.

Contractors make 1/3 to 1/2 as much as regular employees with much fewer benefits.

In addition, they are treated by many regulars as "scum"

If that is the case, then they are working for crappy contracting companies. Because that is not the case for any of the ones I know. Many regulars do treat contractors as scum because the contractors do make more and get paid overtime as well and the regulars (who make less salary and don't get overtime) resent it. Why else would they be seen as "scum?" Could it be because rather than invest in education and training for regular employees, IBM has the habbit of just bringing in costly contractors?
 

ahurtt

Diamond Member
Feb 1, 2001
4,283
0
0
Originally posted by: bozack
Originally posted by: GoPackGo
Originally posted by: ahurtt
Not surprising really as IBM has been trimming a lot of fat in the last couple years since Gerstner left and Palmisano stepped up. 10's of thousands of people have been laid off globally as it becomes more and more crucial to keep costs under control due to cheap international labor. On average I'd say that most contractors make more money than their regular IBM full time employees of comparable skill / responsibility levels. There is more of a shift to fill positions with regular IBM employees as opposed to outside contractors. . .why? Because contractors cost more.

That is not true.

Contractors make 1/3 to 1/2 as much as regular employees with much fewer benefits.

In addition, they are treated by many regulars as "scum"

This is the truth,

FTE IBMers would pull in about 40-50K for field and deskside roles (knew a woman with the company upwards of 20+ years making just about 50K, passed up for promotion over promotion because they were too cheap and it cost them less to promote the young brownnoser)...

Contractors ranged anywhere from 37K-45K for the same position only IBM wasn't responsible for any bene's which saved them a bundle...plus they could cut you at any time.

The only problem was that on the whole the FTE IBM employees were complete idiots, their contractors upstaged them at every juncture and because IBM wasn't willing to pay decent salaries the contractors had little to no motivation to go full time with IBM, plus IBM had a real stigma about transitioning someone from contract to perm...they would rather try to pick you up with a contract aquisition where they could cut your pay after a few months/years...

if you cannot guess I really dislike IBM.

You say that contractors made less money than a full time regular employee for the same position. . .yet then you say the contractor wouldn't want to transition to permanent because IBM would not pay decent salaries? So let me get this straight. . .by going full time regular you could make more money than as a contractor but people didn't want to go full time regular because they would be making MORE money??? Doesn't add up. . .
 

GoPackGo

Diamond Member
Oct 10, 2003
6,521
598
126
Originally posted by: ahurtt
Originally posted by: GoPackGo
Originally posted by: ahurtt
Not surprising really as IBM has been trimming a lot of fat in the last couple years since Gerstner left and Palmisano stepped up. 10's of thousands of people have been laid off globally as it becomes more and more crucial to keep costs under control due to cheap international labor. On average I'd say that most contractors make more money than their regular IBM full time employees of comparable skill / responsibility levels. There is more of a shift to fill positions with regular IBM employees as opposed to outside contractors. . .why? Because contractors cost more.

That is not true.

Contractors make 1/3 to 1/2 as much as regular employees with much fewer benefits.

In addition, they are treated by many regulars as "scum"

If that is the case, then they are working for crappy contracting companies. Because that is not the case for any of the ones I know. Many regulars do treat contractors as scum because the contractors do make more and get paid overtime as well and the regulars (who make less salary and don't get overtime) resent it. Why else would they be seen as "scum?" Could it be because rather than invest in education and training for regular employees, IBM has the habbit of just bringing in costly contractors?


The contractors at IBM are not getting a choice of who they have to work for. Their contracts have been and are being sold to a single provider. Where I used to work there were several companies: AIC, CDI, Keane, Ciber, Manpower. A company, CTG bought all the contractors promising lower bill rates year after year. A 3 year contract amounts to an eventual 15 percent cut.

Contractors here do not make more than IBMers. It used to be a 1.5 to 1 ratio. Now its fast approaching a 2.0 to 1 ratio. Oh...and the IBMers get "unlimited" sick time and other benefits that contractors will never see.