2e2 downplays Patni talks

Discussions with Indian outsourcing firm will not necessarily lead to heavy job losses, stresses integrator

By Doug Woodburn

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29 Jun 2010

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Nick Grossman
Nick Grossman: "Saying it is all done by 2e2 doesn’t tick the box of what people want"

2e2 has played down reports that it could axe up to 150 support roles through an outsourcing arrangement with Patni.

The Register yesterday reported that the integrator is in due diligence with Patni as it explores the potential of hiving off second- and third-line support to the Indian firm.

According to the report, about 150 jobs will eventually be moved to India.

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2e2 corporate business development director Nick Grossman stressed the firm was “right at the beginning of the process” and that a number of options were on the table.

For instance, Patni could well end up merely managing 2e2 support staff. Alternatively, the plan may not go ahead at all.

“This has to work for the customer and has to be clear and reasonable for staff,” he said. “Making people redundant is not the overt play.”

Grossman said the process had been driven by customers, who are increasingly placing a premium on their supplier’s ability to scale up and down quickly and breadth of service.

“Saying it is all done by 2e2 doesn’t tick the box of what people want," he said.

2e2’s recent acquisition of Morse throws the integrator into closer contact with IT services giants such as Logica, which have outsourced support for many years, Grossman added.

Grossman also branded rumours that 2e2 will eventually look to slash a total of between 350 and 380 roles as it begins to integrate Morse as “wild exaggeration”.

All Smoke And Mirrors....And Little Truth

As a significant percentage of 2e2 customers have objected to this move, the number of affected roles has dropped by more than 50% in real terms (mainly because roles have been removed from threat, or more commonly changed slightly so people have had to apply for their existing job with a slightly different title to satisfy legal requirements). The number of roles now under threat is around 50, of which 30ish affect real people, because the other 20 have already resigned and got jobs elsewhere. The morale at 2e2 is terrible at the moment, the majority of the talented staff who made the company what it is have left, the place is full of contractors and even those who remain are still looking for jobs. This has been a perfect lesson in how to very badly manage a situation and alienate the people who keep your company running.

Posted by A Once Loyal Employee | 21 Sep 2010

A bit of a mistake

Before we were bought by 2e2 (via Netstore) were were winning an increasing amount of business from firms who had outsourced to India, it had gone wrong and so they were looking for local help, support and responsiveness.

It looks like 2e2 will start loosing business to similar firms.

Posted by anon | 20 Aug 2010

2e2 - Lets everyone down again

What a suprise, 2e2 buys company and then 2e2 starts to remove staff. Normally this has only affected the sales staff, but now it is going to affect the service staff as well. When will they ever learn? It is a shame, because having worked for Compel, they cared about not only the client but also the staff as well, but this is all wrong - 2e2 destroyed Compel, now they are intent on destroying the entire company from within.

What a shame!!!!!

Posted by mo | 27 Jul 2010

2e2

Nobody outsources abroad to receive service improvement - the language barrier alone frustrates people calling any outsourced service desks. Also, having a larger pool of people to provide support is good in moderation - obviously issues will get resolved quicker. However, a pool of people that is too large and is not solely dedicated to providing just 2e2 customers support is likely to lack any customer knowledge which is obviously extremely valuable, especially with sensitive customers.

Also branding customers who don't agree with 2e2's views as small minded is a mistake. There will inevitably numerous customers who don't agree with this, or that do not want access to their IT infrastructure given to a country with relaxed security laws in comparison to the UK. I'm sure these customers would not appreciate being insulted in this way.

If there is one lesson that can be learned by all staff in this situation, it should be to never work for a company that is up for sale - the bottom line will always be prioritized much higher than the staff and customers, meaning that short sighted decisions will be made to make substantial profit increases in the short run, with no concern of the impact that will be felt in the long run.

Posted by Ex employee | 20 Jul 2010

who cares anymore

2e2 do not care about their staff- they are getting rid of up to 700 staff- so are lying when they say it will only be up to 150 jobs- and the fact they are doing it just before christmas is a joke- its bad enogh trying to get a job throughout the year, so trying to get a job before christmas is even worse, and its not as if the bonus package is anything to right home about, that wont even see the staff through christmas

Posted by anonymous | 20 Jul 2010

common sense....

the fact that views from current or ex employees are so heavily on the negative point of view here should not come as a suprise. 2e2 are simply taking the necessary steps required to remain competititive in terms of the depth and breadth of skills available in the current marketplace. The simple fact is there is a SERVICE IMPROVEMENT available to customers by making a higher number of staff available through PATNI and whilst some customers will inevitalbly choose to part through small mindedness, 2e2 will attract more customers with the kind of mentality which will propel them towards the levels which they are striving to achieve.

Posted by Dont Panic | 16 Jul 2010

2e2

I agree with the above comment. Look at 2e2 other acquisitions Trisys, Norsk Data and Compel. About 50% of the staff were made redundant in the first year of being taken over by 2e2.

Posted by Employee | 11 Jul 2010

2e2

A large proportion of the statement above is untrue - for example, a large proportion of the 1st line teams are going abroad, including all of the out of hours support (apart from remote hands and data centre facilities).

Also, with regards to price, this is completely untrue. If this had nothing to do with price, and was about the ability to up/down size then why look abroad? Customer service wouldn't suffer if it stayed in the UK, and there is a large pool of unemployed people looking for work that could be employed as contractors.

I am also unconvinced about the redundancy numbers - I strongly suspect that there a much more people in scope of redundancy - and this is ultimately just the first phase - I'm sure that if this is successful, then other jobs that can also be done remotely (or requires up/down scale flexibility) will be in scope in the future.

The whole process management carried out by the senior members of 2e2 has been extremely patronizing and carried out with zero regard for the employees in scope - for example, the MD sent a broadcast saying what a wonderful week it's been - not with regard to 'Project Victoria', but still completely inappropriate.

I'm sure that this outsourcing will not be well received by the customers, and I'm sure that 2e2 will have to make a u-turn at some point to try and save some business, but I'd imagine that most of their customers would have left be this point.

One more point - I'm sure that if customers wanted there IT to be carried out in India, then they would go direct to Patni and other Indian sourcing companies, as the service would obviously be identical, but they would save even more money than going through 2e2

Posted by Ex employee | 07 Jul 2010

How dare Nick play this down

I have been working for 2e2 for ## years. The comments by Nick do not reflect the information that has been relayed to the staff during the internal meetings.

The atmosphere in each meeting for all the staff was like a knife in the stomach.

Posted by Mr Annoyed | 05 Jul 2010

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