How Verizon's $700M Outsourcing Deal May Affect Its Competitiveness [telecom]

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With just two months under his belt, Verizon's new CEO Hans Vestberg
is already making some bold bets with the telecom operator's
workforce. Late last month the company offered severance packages to
approximately 44,000 workers as part of an effort to cut about $10
billion in costs while at the same time upgrade its network to 5G,
which it said promises more efficiency.

But within The Wall Street Journal article on the layoffs was the news
that Verizon had also signed a $700 million agreement with India-based
Infosys to outsource much of its IT operations. The deal is structured
so that Verizon employees that currently handle those jobs become
Infosys employees. Verizon wouldn't say exactly how many of its IT
team is impacted by the outsourcing deal but the The Wall Street
Journal indicated it was somewhere around 2,500 employees both in the
U.S. and overseas.

Bill Horne
(Remove QRM from my email address to write to me directly)

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