PLDT in talks with IT firms for outsourcing

MANILA, Philippines -  PLDT Inc. is in talks with other firms for the outsourcing of information technology (IT) functions as discussions with  technology giant IBM have been postponed.

“Discussions have been postponed indefinitely. We don’t know whether we will resume or not resume. Most likely not. So, we are looking at other options,” PLDT chairman and chief executive officer Manuel V. Pangilinan told reporters.

For now, he said PLDT is in talks with other IT firms for the same purpose.

He declined to name the firms.

PLDT was earlier in talks with IBM in line with a manpower reduction program being implemented for employees involved in IT work.

The talks were intended to ensure 100 percent or bulk of the people that would be transferred to IBM would keep their jobs.

Pangilinan earlier said, PLDT expects to generate over P7 billion in savings over a number of years from the move.

PLDT is implementing a manpower reduction program as part of measures to cut costs.

Apart from the manpower reduction program, PLDT is also cutting expenses related to travel, seminars, symposia and imposing a freeze on salary increases.

Cutting costs is in line with PLDT’s aim to see better financial results this year.

PLDT set a P21.5 billion recurring core income guidance for the year.

As of the first semester, PLDT’s recurring core income, which excludes gains from asset sales, earnings before interest, tax, depreciation and amortization adjustments and related tax adjustments, reached P11.9 billion this year, up slightly from P11.8 billion in the same period last year.