Shell is to transfer almost 3,000 IT staff as part of a $4bn deal to outsource the bulk of its technology infrastructure. About 2,960 Shell IT staff and contractors are expected to be transferred under the deal with AT&T, EDS and T-Systems, with Shell saying there will be "20-30 redundancies at worst".
But transferred staff will not retain their existing rights and redundancy packages under their new employers, with Shell estimating these will expire after about two years.The oil multinational expects "significant improvements in efficiency and productivity" and to deliver "important financial benefits to Shell" during the five-year deal. EDS will be the operational integrator for the contracts, with approximately 1,500 Shell IT staff and contractors to join EDS, spread throughout 65 countries. About 900 Shell staff will transfer to T-Systems and 560 to AT&T, with employees mainly coming from Malaysia, the Netherlands, the UK and the US. From July the companies will serve Shell and its subsidiaries in more than 100 countries, with AT&T looking after network and telecommunications, T-Systems hosting and storage, and EDS end user computing services and operational integration of the infrastructure services. Shell said it had signed the Master Service Agreements for the deal and was consulting with unions over the deal.
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