The consequences of IT services giant EDS’ investment in an offshore  outsourcing footprint became apparent this week when it offered early retirement packages to 12,000 US workers – 11% of its total worldwide workforce.

The workers will receive $10,000 dollars more than their current retirement plans if they accept the offer before 30th October. The cost to the company is estimated to be between $70 million and $130 million. EDS, the world’s second largest IT services company and the only one of the ‘Big Six’ to be growing faster than the market, had a period of dramatic staff cuts back in 2003 and 2004, when 25,000 jobs were cut.

The company’s new CEO, Ronald Rittenmeyer, who took over at the start of September, said that its workforce in cheaper labour markets such as India, Brazil and the Czech Republic would grow from 38,000 to 45,000 by 2008.

Further reading

Profile - EDS in India 
Trends - IT services vendors battle it out