PLDT says talks with IBM over

PLDT Inc. said it terminated a deal to outsource its information and technology operations to IBM.

“It has been postponed indefinitely, so we don’t know whether we will resume or we will not resume, most likely not, so we are looking at other options to see how we can (pursue the manpower reduction of our IT department),”  PLDT chairman and president Manuel Pangilinan said.

When asked the reason of termination of negotiations, Pangilinan said, “ a lot of reasons, we’ll probably not to comment, they are (a) multinational firm.”

PLDT was supposed to sign by end of June an agreement to outsource its IT needs to IBM.

Pangilinan, however, said the manpower reduction of its IT department would push through within the year and that the company was currently in talks with other IT service providers.

PLDT has over 1,000 IT personnel.

“Some are US (IT providers ), a lot. The discussions are proceeding,” he said.

PLDT expects to save P7 billion over the next five years from the planned manpower reduction of its IT department.

Pangilinan said besides manpower reduction, the company would also cut expenses on travel, seminars, symposia, foreign trips and essential entertainment.

PLDT implemented a salary increase freeze in the last two years.

Topics: PLDT Inc. , IBM , PLDT chairman and president Manuel Pangilinan
COMMENT DISCLAIMER: Reader comments posted on this Web site are not in any way endorsed by Manila Standard. Comments are views by readers who exercise their right to free expression and they do not necessarily represent or reflect the position or viewpoint of While reserving this publication’s right to delete comments that are deemed offensive, indecent or inconsistent with Manila Standard editorial standards, Manila Standard may not be held liable for any false information posted by readers in this comments section.