Outsourcing

Since its inception more than 20 years ago, IBM has been a leader in its field. Despite this success, over the course of the last several years, IBM has found that in order to keep itself competitive, corporate restructuring has been necessary. As such, practices such as downsizing and outsourcing have become quite popular for the company. To this end, Johannes and Armstrong (2002) report that IBM has recently signed a deal with Fidelity's Employer Services Company to outsource its human resource department. Of the IBM's 1,200 human resource employees, Fidelity will retain 450. …