Used to Be Great, Now a Shadow of Its Former Self
Pros
In 2017, AGCO was growing dynamically on a global scale. The HR, IT and Finance departments were expanding significantly, and there was a strong sense of momentum in the organization. The office in Office Garden was spacious, modern and well equipped, creating a comfortable working environment. There were regular opportunities for business trips to other AGCO sites worldwide, which helped employees build international connections and gain valuable experience. It was also a great place for students and fresh graduates, who often started as interns and were later offered full-time positions. The company supported a good work-life balance and offered the option to work from home, which was highly appreciated. The atmosphere was generally collaborative, and teams had the freedom to take ownership of their work. Career advancement was possible, even if not always easy to achieve, and motivated employees could progress with persistence and dedication.
Cons
Since Viren Shah joined AGCO as CDIO in early 2024, he and Eric Hansotia decided to outsource all IT functions to India. In the autumn of 2024, a global 6% workforce reduction was announced, with the IT organization being the most affected. All internal IT services were transferred to Infosys. From the Budapest office alone, 97 out of 477 employees were laid off, and afterward more than 40 others resigned voluntarily. In the autumn of 2025, the application teams were also outsourced, this time to Cognizant. Students and interns can no longer be retained or hired, and one entire floor of the office building was returned, as 320 people no longer require three floors of space. As a result of these changes, employee morale declined sharply. Many of the most experienced and knowledgeable professionals have left, taking years of expertise with them. Collaboration and response times have significantly worsened, and communication with external vendors has become slow and inefficient. The remaining teams often struggle with unclear responsibilities and constant turnover on the vendor side. Service quality has deteriorated dramatically, with frequent delays, errors and a lack of ownership. Business stakeholders have reported growing frustration due to poor support and the loss of trusted internal partners. What used to be a stable, knowledgeable in-house IT organization has been replaced by detached external providers who have little understanding of AGCO’s processes, systems and culture. This outsourcing strategy—locked in for five years—has already shown negative operational and financial consequences. What was once a strong, collaborative and future-oriented IT community has largely been dismantled, and the long-term impact on the company’s effectiveness and reputation is becoming increasingly visible.
