Capital One Outsources DC Ops to IBM

Credit card giant Capital One is outsourcing its data center operations to IBM, a move that will eliminate 170 IT jobs for data center workers in the Richmond area. “This was a difficult decision and one that Capital One’s leaders do not take lightly,” company spokeswoman Julie Rakes told the Richmond Times-Dispatch. The lost jobs involve data-center planning for disaster recovery, capacity planning, general data-center operations and technical support. IBM expects to hire 50 people in the Richmond area to support the Capital One contract, and laid off Capital One employees will get preferential hiring consideration. The remainder of the staf support for the Capital One contract will be provided at other U.S. sites and in India.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.