IBM outsourcing deal with Aecom 'a mess' and the CIO is 'on his way out', claims insider

Source close to the deal claims that the Aecom board are starting to realise the deal was a mistake, and that employees are being treated "like crap"

IBM's $2.3bn gloal outsourcing contract with engineering giant Aecom is "a mess", and CIO Tom Peck is "on his way out", according to a source close to the deal.

The source, who wishes to remain anonymous, explained that they had seen a request to terminate all of Peck's accounts from the financial systems, and suggested that this means the CIO is leaving.

The source argued that it the decision to leave may not be Peck's: "I think it wasn't him deciding to leave," they suggested.

They claimed that the deal has resulted in a greatly reduced service from IT, compared to its previous capabilities when it was run internally by Aecom.

"It's surprising for a company like IBM that the support they provide is terrible," they said.

"Lots of people have complained about the service they're getting from IT. It now takes weeks to clear new accounts. It's just not working and it's gone so badly that some departments are asking to charge IT for their employees' time because people are sitting there not being able to work."

Computing broke the news that the deal was happening in January 2017.

According to the source, the senior leadership team are now realising that the deal was a mistake.

"I think the senior leadership are now realising what they've got themselves into. Other senior people have left. The board is starting to realise they've made a mess. Employees are complaining, and the internal chat board is full of complaints."

The source claimed that some IT tickets are left open for 30 days or more, and other activities which used to have a fast turnaround are now taking several days due to convoluted new processes.

"There are issues where before it would take 15 minutes to take care of a password or to call to sort out an IT problem, that now goes through much longer process, this huge workflow, and ends up being like 3-5 days because of all this management approval."

Another source spoke to Computing in February 2017 with similar experiences of delays and low morale.

According to the source, the situation is likely to worsen as the former Aecom IT staff taken on by IBM are replaced by operatives in Argentina and India.

"We now have to train people from Argentina and India. It all has to be done step by step, show them screenshots and where to click. They'll get rid of us and hire up cheaper replacements.

"It's going to get worse after that transition. After we go home, all our tickets in the evening are supposed to go to India and Argentina. But when we arrive in the morning, all the tickets have been reassigned back to us. They don't know what to do."

The source also claimed that the atmosphere at the firm is unhealthy.

"When IBM brought us on board they said we're all IBM employees. But we're treated like crap. The writing's on the wall. I log in and wonder if I can connect, or will it turn out to be my last day? It's not a healthy place to work.

"People who have left in our group haven't been replaced. Their work is still there and they just pile it on the rest of us. The don't bring people in, or if they do you can see they don't have much experience."

Computing has contacted IBM and Aecom for comment, and this story will be updated with their responses.