PLDT postpones outsourcing talks with IBM

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TALKS to outsource the information technology (IT) operations of PLDT Inc. to a unit of International Business Machines Corp. (IBM) have been postponed, PLDT Chairman Manuel Pangilinan said.

Asked if the outsourcing of IT operations with IBM would be pursued, Pangilinan said it would be “under a different format,” without disclosing further information about IBM.

He said that the company is in talks with other US-based IT firms.

“Some are US-based IT firms. Many, there are many ties. Perhaps there will be adjudicators,” he told reporters on the sidelines of the company’s press briefing on its first-half results late Thursday in Makati City.


Pangilinan also said the company has yet to estimate how many employees would be affected by the outsourcing plan.

“None yet, we estimate, but I think it’s into… but the discussions are still proceeding, right? So I think when we come into some agreements with the providers we can give you a better idea,” he said.

In March this year, when Pangilinan announced the company’s plan to outsource its IT needs to IBM, he said the move could affect 1,000 PLDT employees.

“Just IT, and not all of the IT people will move to IBM. Some will be retained. We have to retain the so-called brains of the IT organization,” he said in a previous interview.

PLDT is considering outsourcing as part of efforts to cut its operating expenditures.

Pangilinan earlier disclosed that PLDT has reduced unnecessary expenses such as travels abroad and attendance at seminars and symposia, among others, to help cut costs.

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