Thread regarding ExxonMobil Corp. layoffs

Shell backing away from India low cost centers

A friend of mine at Shell told me they started the India BTC trend so are a few years ahead of us on the journey. She said they have tried and failed to make it work and are starting to back away from the model as their data tells them it isn’t working and they have tried and failed to make it work. Anyone else hearing the same?


by
| 164 views | | 13 replies (last 11 days ago) | Reply
Post ID: @OP+1m68ycmde

13 replies (most recent on top)

Interesting development if true. I don’t expect we will do anything different. Probably will hire anyone they lay off.

by
| | Reply
Post ID: @et+1m68ycmde

It’s wild…almost like all these oil companies hire the same braindead management consultants.🤷‍♂️

Fu-k India

by
| | Reply
Post ID: @cw+1m68ycmde

@bj
Somebody needs to listen to this guy… he/she hit it spot on!

by
| | Reply
Post ID: @cs+1m68ycmde

@ah cheaper absolutely.

Better at what?Your work is constantly wrong, Indian food is better in England. So what exactly are you better at?

by
| | Reply
Post ID: @c5+1m68ycmde

The Indians are awful and so hungry for praise and recognition. We’ll do something! Don’t su-k. I thought Americans were entitled, these guys thing they’ve earned a 1 week trip to Houston

by
| | Reply
Post ID: @bw+1m68ycmde

Indeed, I heard the same from a Shell middle management person - they have reshored Procurement positions previously outsourced to Poland back to their HQ in the Netherlands.

by
| | Reply
Post ID: @br+1m68ycmde

This is true across all Corporations. Corporate America got over zealous on what it thought India could do. Yes, they can do some great work but the type of work and where it is done is important. As a company, XOM footprint is becoming focused in the western hemisphere. Having support 12 hours time difference from the asset doesn’t work… this is true for engineering or any support function. It simply drags down the efficiency of the entire corporation. Nothing will change but if DW really wants to enable the best of the Corp, he needs to hear this “boots on the ground” feedback.

by
| | Reply
Post ID: @bj+1m68ycmde

@OP They’re backing away because of automation, not because they “see the light” and want to create high-paying jobs in Europe and North America.

by
| | Reply
Post ID: @b1+1m68ycmde

I could have arrived at that conclusion during my first conference call.

It’s a joke.

by
| | Reply
Post ID: @b0+1m68ycmde

Shell is seeing the poor quality work and the time spent elsewhere to clean up the mess made by incompetent India staff.

It's a sham. It saves $100K in one cost center, but then they make $1M worth of mistakes that show up elsewhere. They'll take one job in North America, backfill it with 2 people in India, but they mess up everything, and someone in North America is left to catch and fix the mistakes.

Good that Shell is seeing the problems. Unfortunately EM executives are still sharing lies about what a great success it's been to outsource work to India so they can improve their ranking. So toxic.

by
| | Reply
Post ID: @ax+1m68ycmde

@ab. Don’t forget that you need to send an expat to figure out what the 17 people in the corner are doing. Then all 17 will go into gas-light mode to tell you how important they are….but the light still isn’t working. Then the 2 people actually working the problem quit.

by
| | Reply
Post ID: @ar+1m68ycmde

India is cheaper and better.

by
| | Reply
Post ID: @ah+1m68ycmde

That is brilliant. And we already know from first-hand experience with our own attempt, it is 100% true. Here’s the thing with cheap labor:

Say the job is sc--wing in a lightbulb. The cost of doing it with an American employee is $200k and the cost to do it with an outsourced employee is $10k.

The company thinks: Well, if one outsourced employee cannot do it, I can get 19 of them to work on the same task and still save money.

The truth: 19 people cannot physically sc--w in a lightbulb bulb. At most, 2 of them attempt it and 17 are in the corner discussing among themselves, napping, or checking their phones.

But we are not talking about light bulbs, are we? We are talking about multimillion dollar invoices, procurement contracts and engineering assignments. 1 mistake over the course of a year immediately pays for that US employee.

The right answer is to do it in-country and cut out all the b.s. internal work that makes it so expensive. Also incentivize it correctly.

Pay the ‘invoicer’ on the number and correctness of the invoices they are processing.

Hire an ‘invoice checker’ to sweep behind the ‘invoicer.’ Pay them for the number of incorrect invoices they identify, and recovered money.

You could staff the whole department with flexible home/office work and part time hours here in the US. You wouldn’t have to pay any benefits due to the part-time, but would need to offer a large bonus component for good work.

by
| | Reply
Post ID: @ab+1m68ycmde

Post a reply

: