Planemaker Outsourcing Its Computer Systems Work
Following in the footsteps of many
an American corporation, Boeing has decided to outsource its
information technology work in a move that will result in
Last Friday, 149 senior IT personnel were the recipients of
60-day layoff notices, reports The Seattle Times. Some of those who
received the notices could possibly find other positions within
Boeing -- while the outsourcing company, Computer Sciences
Corporation (CSC) of El Segundo, CA will hire others said Boeing
spokesperson Cathy Rudolph.
"We have a very large IT population. We're always studying where
does it make sense to do that work," she said. "There is no
overarching strategy to outsource large portions of IT work."
The Puget Sound area of Washington will see the most losses at
123 jobs; the rest of the positions are distributed across the
The positions being let go include systems analysts, system
administrators, design and integration specialists as well as
non-union professional staff. CSC had taken over the computer
systems monitoring, support and administration duties in Boeing's
defense unit in 2003. Those duties will now be company-wide.
Boeing Vice President Radha Radhakrishnan, head of the affected
Boeing unit, Computer and Network Operations (CNO), has actually
been toying with restructuring options for more than a year,
A memo from Radhakrishnan last month said, "the CNO Leadership
Team has been working over the last four months to 'Paint the
Future' of this organization," and outsourcing would "achieve
The Seattle Times reports CSC had submitted a bid to take over
Boeing's mainframe operations, but that bid was higher than the
cost of doing it in-house, according to a CNO employee.
Rudolph confirmed mainframe operations would be kept in-house
and the outsourced work is "in line with CSC's core business."
However, she said, that doesn't mean Boeing will outsource any
more IT work.