EXCLUSIVE: Ingram Micro offshores 100 jobs to Manila

EXCLUSIVE: Ingram Micro offshores 100 jobs to Manila

60 staff notified their roles have become redundant, more to follow

Ingram Micro's Jay Miley

Ingram Micro's Jay Miley

Ingram Micro Australia will move 100 administrative jobs offshore to Manila over the next nine months.

The jobs are predominantly in the finance, licensing and administrative areas.

Announcing the move, Ingram Micro vice-president and managing director A/NZ, Jay Miley, said he had today notified 60 people locally that their jobs would be made redundant.

These jobs would transition to Manila at the beginning of Q3.

“Nobody has left yet,” Miley said, “but we are notifying affected staff at this stage. We are taking our time and practising effective change management.”

A further 40 jobs will become redundant between October and March.

The 100 jobs lost in Australia will be matched by the creation of 100 new jobs in Manila.

Miley said the offshoring of the positions follows the move of Ingram’s shared service centre in Kuala Lumpur to Manila.

The company had operated a shared service centre in KL since 2006 but finalised its move to Manila in late March/early April.

He said there were two reasons for the decision to offshore the positions.

“Firstly, given the competitive environment we operate in we have to keep a close eye on our cost structures,”he said.

“We also need to have a bit more flexibility in the services we offer and scalability around those services.”

When asked if the move reflected a tightening of the IM belt in Australia, Miley said that it was business necessity in line with company’s focus on sustaining a notable competitive edge in the marketplace.

He also pointed out that Ingram was currently making significant investments in its business and the marketplace rather than tightening purse strings.

“We go with the cycles,” he said, “but we believe it is a good time for investing. You wrote recently about our new warehouse, we’re investing in a new Web platform and in the local market in terms if the number people in face to face sales roles and business development roles.

‘We acknowledge the fact that people buy from people.

“Unfortunately, some of the backroom administrative roles don’t offer a competitive advantage so we have looked to offshore them.”

He underscored that IM’s Australian clients who use the services provided by these jobs would not be affected.

“The staff in Manila will work Australian hours, be managed by our local team, and held accountable to Ingram’s core Australian management.”

Ingram's Australian employs about 700 people in Australia according to Web figures.

The news came at the same time as Ingram Micro in the US announced it has bought BrightPoint, a provider of customised logistics services to the wireless industry for about $840 million.

Ingram acquired Brightpoint’s outstanding shares for $US9/share in cash.

The move gives Ingram a worldwide presence and customer base in the mobility market.

Ingram Micro Australia could not comment on the Brightpoint deal.

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