Source

http://www.punchng.com/Articl.aspx?theartic=Art20090508455993

Wrong Thread,

This story is not political, It is a business Decision

Hmmmmmmmm just like that

Too sad Govt should consider bailing out these companies to save people's jobs.

outsourcing jobs? to where? I thought Nigeria already possess one of the cheapest labour forces?

dont think we wud hav d cheapest labour force when it is skilled.

But its more of reorganising the model and focusing on their core business of sales and marketing. They dnt want to have to worry about running a network directly wit so many pple, when u are still paying vendors so much cos u r still not getting the availability u need.

They hav transferred most of d functions to vendors, who wud den need to assess the volume of business they r lookin to get against the number of staff that has been transferred to them, so some of the outsourced staff might still be losing their jobs, HARD!

China and India have a very large skilled workforces, yet their average workers are paid very little.

@ aahmed are you basically saying that these jobs have been outsourced to third-party Nigerian companies?

well, like u knw der wud always b a bit of politics to who gets what, but d truth is not a lot of nigerian companies hav d capacity to handle jobs at this level. I know companies like ericsson and harris hav bin involved in discussing taking some of these jobs. And a good few wud b 'packaged' companies from d middle east, who wud hurriedly try to establish some presence with some local partners, but reali dnt knw wat jobs went to who,

aahmed112,
you display a good knowledge of the workings of the industry and the happenings on Zain.
any clue what specific depts were mostly affected and what cadre?
my view is that if it is network services they are outsourcing, it will be to their main equipment vendors;Ericsson, Huawei and Motorola.
Those guys will just add a few extra hands from their offices outside nigeria and will not need the zain staff.Huawei in particular will just ship in half a dozen chineese boys from their HQ who will just be added to the technical staff that were working on the Zain contract and their will then be a further downsizing in Zain.

from the feelers i am got a while back, it seemed the Bahrain owners of Zain were unimpressed by the quantity of the workforce.a case of severe overbloating was alleged. the problem is that decison making will be greatly impaired as everything has to be approved by Bahrain first.In a competitive market, speed is vital.that is where Glo has an upper hand.

well from what i got, it wasnt restricted to any particular cadre or dept, it was a bit here n der.

Yes, network services and planning were affected. The vendors wud b d first point of call for these. a company like ericsson wud prob keep a lot of the positions local, but huawei i dnt think wud want to pay half of what zain was giving these guys, so i think ur spot on wit ur huawei prediction, its jus sad to hav a lot of pple out of job without some advance notice. Even heard they had a police van + ambulance at their premises, in case of any protests or shock victims. . .

thats why i still have my reservations about companies like etisalat at this stage of their operations. Doling out huge salaries, when they practically dont have a network. That has to change real soon, or they might have to get drastic too with how they do things. . .

How sad, can we really blame Zain? The company, like others is facing stiff challenges that have killed compnies Like Dunlop, textile industries etc, It is a reflection of our national rot,

Who could believe that Dunlop will go under two years ago? for zain to remain in buusiness, it has to carry out painful decisions, I weep for my dera country and for the victims,

Aahmed112, i hear Etisalat now offer lower salaries than was the case months back when they began.
reducing the salaries will not be more of an issue.they will simply tie it to performance in future and if you do not meet up to some ridiculous high standard, offer you a lower pay or gladly accept your resignation.
the major problem was that Zain (as Vmobile and celtel) was a bit mismanaged. the board was disjointed and some decisions looked crazy.
like the lease of that Bana Island office complex. the building was incomplete up until two months back (that i am certain of), yet they moved in 7 months ago.The lease for a few years is tripple what Etisalat paid for an outright purchase of theirs in same location and the owner of the building is the lawyer to one of the companies (basically an individual) that is on the board of Zain Naija.
coupled with the bloated workforce and other details that are unknown to me, the Bahrain guy's just decided to clean up the place.

On your Ericsson note,there is no possiblity of Ericsson Naija employing anything more than 4 or 5 of the techie staff from Zain, no matter how many staff are outsourced.The Ericsson model is to have very few local staff and use their staff from around the globe as the need arises.
the killer point is going to be overnight consultancy firms that will be incoporated to take the outsouced job, they will employ the outsourced Zain staff, pay them peanuts, and make a large profit without adding any value to the system. at the end of the day, workers will be the losers.

The days of lau-lau spending in telecoms are drawing to a close.
A lean team is the smart way to go.

this is what you get when mediocre firms and owners are given the licence to operate.

Enquirer:

Too sad Govt should consider bailing out these companies to save people's jobs.

If they look into their records and they pay taxes well and the employee that lost their jobs pays taxes, then, they cld be bailed out, else, nothing for them oh