Boeing is outsourcing IT support to Dell, affecting hundreds of IT jobs at the US aircraft manufacturer, after the Covid-19 pandemic forced it to accelerate existing plans. According to The Seattle Times, Boeing CIO Susan Doniz informed staff in an internal message that 600 jobs were being outsourced to Dell. Don said while the changes were not a consequence of the Covid-19 pandemic and the economic slowdown it has wreaked, the process had been accelerated.
“This is a change we would have made even without a global pandemic,” wrote Don. But she added that the impact of Covid-19 on the aerospace industry had “certainly quickened our pace”. Affected staff – about 10% of the manufacturer’s IT workforce – must either find different work within Boeing, apply to work for Dell, or be laid off, she wrote.
Capabilities being outsourced include support of cloud services, databases, IT security, and users.
The airline industry was hit early and hard by the economic slowdown and disruption caused by the Covid-19 pandemic. The travel and transportation industries almost ground to a halt early on, with continued restrictions limiting recovery, particularly for the travel sector. The IT services sector was also hit by a sudden slowdown but has recovered as enterprises see it to prepare for life after Covid-19. This is highlighted by the fact that demand for IT services has picked up.
After a lull early in the pandemic, according to the latest figures from ISG, which records all deals worth $5m or more, total global spending reached $59.8bn in 2020, up 7% from 2019. Cloud-based as-a-service contracts saw the most significant growth in value, earning about $33bn, a rise of 17% on the previous year. Businesses are changing how they operate to enable more remote working and boost resilience alongside existing digital transformations.
This week, Boeing’s main competitor, Airbus, signed a five-year deal with Indian IT services giant HCL to deliver digital workforce services. The services provide a modernised digital workplace to most of the airline manufacturer’s staff globally. The combination of HCL’s scale, transformational expertise, and management capabilities of IT and operational technology landscapes will enable Airbus to remain at the forefront of innovation and deliver leading-edge user experiences,” said Sandeep Saxena, executive vice-president for the UK and Ireland, France, and Benelux at HCL Technologies.