PLDT Inc. has scrapped plans to outsource its back office information and technology (IT) operations to IBM.
“It has been postponed indefinitely, so we don?t know whether we will resume or not. We are looking at other options to see how we can (pursue the manpower reduction of our IT department),” said Manuel V. Pangilinan, chairman and president of PLDT.
Pangilinan refused to divulge the reason(s) behind their decision to terminate negotiations with IBM.
“A lot of reasons, we’ll probably not comment, they are a multinational firm.”
PLDT was supposed to sign an agreement with IBM end-June.
Pangilinan, however, said PLDT was still keen on reducing its IT manpower this year.
He said they and 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 .
Pangilinan had 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 also implemented a salary increase freeze in the last two years.
