Business Times (Malaysia): Shell's service efficiency scheme to boost jobs: “The official was asked to comment on a news report posted on the rediff.com's website recently which said that Shell is cutting 600 to 800 IT jobs in the US and relocating them offshore, mainly to India and Malaysia.”(ShellNews.net)
Sep 24, 2004
THE Royal Dutch/Shell group does not outsource its information technology (IT) works to Malaysia but has and will transfer the jobs under its service efficiency programme, providing a boost for the locals to find more jobs.
An official with the company said jobs that have and will be transfered to Malaysia are infrastructure-related, such as applications hosting like server support and first level help-desk activities, including password resets and access managment.
Cyberjaya-based Shell Information Technology International SITI Sdn Bhd alone will see its staff strength increase from the current 1,100 to 1,200 people by the end of the year.
SITI is a 100 per cent Shell- owned IT delivery centre, employing over 1,000 staff and contractors.
"SITI is an MSC-status company and is one of Shell group's global IT centres that provides comprehensive desktop support services, as well as eHosting and application support for business applications.
Besides SITI in Cyberjaya, there are also 42 IT staff working in the exploration and production operations in Miri, Sarawak.
"Given such a scenario, there is no outsourcing involved," the official told Business Times.
The official was asked to comment on a news report posted on the rediff.com's website recently which said that Shell is cutting 600 to 800 IT jobs in the US and relocating them offshore, mainly to India and Malaysia.
On the news report, the official said it refers to Shell group's effort to achieve world-class IT by 2008.
The official said the US$850 million (US$1 = RM3.80) annual savings by 2008 is expected to be achieved through Shell's IT service efficiency programme.
This involves rationalising its applications portfolio, standardising infrastructure, transferring work to cost-advantage countries like Malaysia and India, and through procurement leverage.
The reductions stem from its plans to achieve world-class IT in Shell in terms of price performance by 2008 through IT service efficiency programme.
"The more efficient we become through standardisation and rationalisation, the less work we have to transfer.
"So it is not a case of taking a set number of jobs from one location and transferring the same number elsewhere," the official stressed.
According to the news report, Shell hopes to make the reductions by 2006. The job cuts will be made through attrition, reducing the number of contractors, reassigning some employees to other jobs and offering voluntary severance packages.
The report said currently, Shell has a total IT manpower of 9,300 personnel globally, including 2,200 in the US. Most of the domestic IT jobs are in Houston.