IBM's Script For Offshoring Jobs Internal IBM Documents Repo

Ibms Script For Offshoring Jobsinternal Ibm Documents Reported In The

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Internal IBM documents reported in The Wall Street Journal in January 2004 revealed the company's strategic approach to offshoring programming jobs to countries such as Brazil, India, and China. These documents indicated that IBM was planning to relocate high-cost labor to regions where the cost per hour is substantially lower. Specifically, while in the United States, a programming job might cost IBM around $56 per hour, the same job could be performed in China for approximately $12.50 per hour, representing significant cost savings (Bulkeley, 2004).

The documents also demonstrated that IBM recognized the sensitivity surrounding offshoring and thus provided managers with a pre-approved script for communicating this transition to employees. This draft script was designed to manage employee perceptions and minimize backlash, emphasizing that the offshoring was not a resource action, a euphemism for layoffs, but rather a response to the rapid changes in the industry. Communication guidelines mandated that all written messages to employees should be "sanitized" by communication and human resource personnel to prevent transparency about the true purpose of the job relocations ("Do not be transparent regarding the purpose/intent"). Managers were explicitly instructed to avoid terminology such as "onshore" and "offshore."

Part of the suggested script for informing employees that their jobs were being moved offshore included statements such as, "This is not a resource action," and reassurances that the company would try to assist affected employees in finding alternative employment within the organization. The script also recommended framing the message to lessen employee concerns by stating, "This action is a statement about the rate and pace of change in this demanding industry. It is in no way a comment on the excellent work you have done over the years," and expressing empathy with comments like, "For people whose jobs are affected by this consolidation, I understand this is difficult news."

This strategic communication was carefully designed to mitigate negative reactions and to position offshoring as a necessary adaptation to industry demands rather than a reflection of employee performance or value. Overall, IBM’s approach to managing the transition reflects a broader trend in corporate offshoring strategies, where transparency is limited, and messaging aims to preserve employee morale while achieving cost reductions (Bulkeley, 2004).

References

• Bulkeley, W. (2004). IBM Script for Offshoring Jobs Internal Documents. The Wall Street Journal.
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