So a few I know last quarter went over to one of the those companies as part AT&T "partnership" agreement, what's the likely outcome, will they continue as employees working their or are they living on borrowed time?
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They are 100% borrowed time. Think about it, if tgeir current value were accurate, why would ATT have sold them off?
This happened a couple of years ago with Tech M. An on board meeting happened which sold these employees a great future at Tech M. Then they had to “knowledge share” aka train Tech M employees. Then bang a year is up and you’re gone-no need for you since you taught them everything they needed to know. If you’re in this position I would strongly urge you to start looking for another job and also ask for additional compensation for training people.
Contractors who went to Tech M are doomed. No budget to cover them.
We used to call it "year and a day". The rebadging company has to pay for the employee's AT&T severance if they lay them off before a year is up.
This came about when SBC sold Yellow Pages to Amdocs and Amdocs laid off the employees 6 weeks later without severance. At the time, I think SBC owned 15 to 40 percent of Amdocs.
New contracts may have different penalties and time frames. The 90s and early aughts outsourcings were smaller in scope, more like groups of 50 or less, at least from what I remember in ITO. The current Finance Accenture deal (no rebadging!) affects around 1500 managemers. I don't know how many IT people were rebadged for IBM (Project Yosemite) or for Tech Mahindra this year.
Borrowed time