I recently blogged about GM’s decision to insource IT. I asked whether people think it is a one off or a move that might be copied by other large firms. I am working on an analysis of the move so want peoples’ views.
Sean Finnan, who used to be the UK head at EDS and later had a pan European role at IBM Global Services sent me his thoughts.
He said: “There are always some that are falling in or out of love with outsourcing. I don’t think this is the start of a new trend beyond the normal ebbs and flows of business.Outsourcing remains an important and viable part of the IT landscape.
The essence of rejecting outsourcing as an option is normally a CIO who believes he or she can gain sufficient scale advantage to equal or outweigh the profit requirements of the market.
The forgotten element is often the transfer of risk. Not just risk of project failure (where suppliers soak up cost over runs) but also the risk of innovation failure.
The failure to provide sufficient new features from the IT environment to remain competitive is often overlooked.”
Tell me your views.