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As HP's CIO, Randy Mott Hasn't Changed His Outsourcing Stripes

In This Issue:
1. Editor's Note: As HP's CIO, Randy Mott Hasn't Changed His Outsourcing Stripes
2. Today's Top Story
    - Keyworth Resigns HP Board
    Related Story:
    - Dunn To Step Aside As HP Board Chair
3. Breaking News
    - Apple Unveils Movie Downloads, iPod Models
    - U.S. FCC Chief Says To Bolster Call Record Security
    - Microsoft Crushes Just 3 Bugs In September's Patch Batch
    - Dell Seeks To Reinvent Itself Amidst SEC Probe And Other Distractions
    - Morocco Jails Two For Disrupting U.S. Computers
    - IBM Makes First Cell-Based Computer Available
    - Canon Says To Recall Copiers That Can Catch Fire
    - New Handsets, Mobile Phone Network Improvements Trotted Out
    - New IBM Technology Designed To Combat Consumer Data Theft
    - Schwarzenegger Computer May Have Been Hacked: Police
    - Review: Iomega's Rev 70 Gbyte Drive Might Make Tape Obsolete
    - RightNow Updates On-Demand CRM Suite
4. Grab Bag
    - TiVo Unveils Its First High-Definition DVR (ABCnews.com)
    - Brave New Hard Drives (CBSnews.com)
    - Valley Pioneer Captures History Of Microprocessor In New Film (MercuryNews.com)
    - Prankster Posts Sex Ad Replies Online (MSNBC.com)
5. In Depth: InformationWeek 500 Conference
    - Tom Peters On Innovation: Experiment 'Fearlessly'
    - 'We Are A Company In Transition,' Says HP's Hurd
    - GM's Massive Outsourcing Deal Up And Running
    - Yahoo CIO Talks Up New Ad Platform, Social Search
6. Voice Of Authority
    - With Help From IBM, U.S. Biz Schools Teach Grads How To Move Jobs Offshore
7. White Papers
    - A Key Regulatory Compliance Question: How Secure Is Your Data Transfer?
8. Get More Out Of InformationWeek
9. Manage Your Newsletter Subscription

Quote of the day:
"Do not worry about your difficulties in Mathematics. I can assure you mine are still greater." -- Albert Einstein


1. Editor's Note: As HP's CIO, Randy Mott Hasn't Changed His Outsourcing Stripes

Today's Editor's Note comes from Chris Murphy, senior executive editor of InformationWeek:

At Wal-Mart and at Dell, Randy Mott kept IT work in-house, with almost no outsourcing. He's got the same game plan for HP.

Mott, speaking at the InformationWeek 500 Conference in Palm Springs, Calif., said HP relies too much on a myriad of outsourcers and contractors, and it leads to too many "hand-offs" during IT projects. Plus, he wants HP's IT team to be a showcase for the software and hardware it sells, so he wants the team building in-house expertise. His goal is to have 90% or more of work done by HP staff, not outsiders.

Mott has never said he's anti-outsourcing (certainly not at a company that sells outsourcing). CIOs need to do what makes sense for their businesses, and companies with great variability in IT project demand or that don't want to commit to building a top IT shop probably should rely more on contractors and outsourcing. But when his job is on the line, Mott has always relied on his own people. At Dell, he benchmarked internal IT operations against outsourcers' cost and performance, making it clear to the team those were numbers to beat to keep the work. But there was also a clear expectation that if the IT team, with its insider knowledge of the business, couldn't outperform outsourcers on key IT functions, then shame on them. Similar story at Wal-Mart, though admittedly the IT outsourcing industry was much less developed at the time.

As usual, Mott has set some tough expectations for HP's IT staff to cut costs while improving operations, and he has set up stark metrics to measure progress (like IT going from spending 54% of their time on maintenance and support to 80% by 2009, thanks to greater automation). We're going to write more about that in our upcoming issue. HP has been in the news this week for a lot of the wrong reasons. Hopefully the board can stay out of the way long enough to give the interesting things happening at HP, including in its IT department, a chance to play out.

Chris Murphy
cmurphy@cmp.com
www.informationweek.com


2. Today's Top Story

Keyworth Resigns HP Board
George Keyworth, a 21-year Hewlett-Packard board member, has resigned, saying, "The invasion of my privacy and that of others was ill-conceived and inconsistent with HP's values."

Related Stories:

Dunn To Step Aside As HP Board Chair
HP Chairman Patricia Dunn will continue as a director, but will relinquish her role as chair in January. The media probe is now being examined by as many as six regulatory and law enforcement groups.


3. Breaking News

Apple Unveils Movie Downloads, iPod Models
Another announcement today was about a new device code-named iTV that will carry content from a PC or Apple Mac to a television.

U.S. FCC Chief Says To Bolster Call Record Security
Pressure has grown to beef up standards in the wake of HP obtaining such data. One safeguard is to mandate that the person have a PIN code before information can be released.

Microsoft Crushes Just 3 Bugs In September's Patch Batch
Only one of the September patches was pegged "critical," and that was for Publisher.

Dell Seeks To Reinvent Itself Amidst SEC Probe And Other Distractions
Michael Dell and other execs talked up "Dell 2.0" on Tuesday, the company's new strategy for growing its business.

Morocco Jails Two For Disrupting U.S. Computers
The Zotob worm caused computer outages at more than 100 U.S. companies, including The New York Times and CNN.

IBM Makes First Cell-Based Computer Available
The blade system is well-suited for applications in medical imaging, aerospace, military, digital animation, and communications, IBM says.

Canon Says To Recall Copiers That Can Catch Fire
The company says it will inspect and replace three compact personal copier models made in Japan between 1987 and 1997. More than 140,000 units are subject to the recall.

New Handsets, Mobile Phone Network Improvements Trotted Out
Call it "Mobile Tuesday": Some half-dozen vendors—including Nokia, Research In Motion, and Verizon Wireless—introduced new or improved wares.

New IBM Technology Designed To Combat Consumer Data Theft
The technology encrypts Social Security numbers, credit card information, and other customer data archived on magnetic tape.

Schwarzenegger Computer May Have Been Hacked: Police
California police are looking to find out whether hackers broke into the governor's computer and downloaded a recording of a private conversation in which he said African-Americans and Latinos are "hot-blooded."

Review: Iomega's Rev 70 Gbyte Drive Might Make Tape Obsolete
Iomega's removable Rev drive is too expensive for home use, but could be a great alternative to tape backup systems.

RightNow Updates On-Demand CRM Suite
Enhancements in RightNow 8 are geared toward improving data analysis and providing customers with better service.

All Our Latest News


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4. Grab Bag

TiVo Unveils Its First High-Definition DVR (ABCnews.com)
Playing a bit of catch-up to rival offerings, TiVo unveils a new high-end digital video recorder that's the company's first to support high-definition programming.

Brave New Hard Drives (CBSnews.com)
File that, would you? It's been a long time since a dusty drawer was your only option. CBS takes a look back at 50 years of leaps forward in choices for digital storage—in both capacity and affordability. What's coming next?

Valley Pioneer Captures History Of Microprocessor In New Film (MercuryNews.com)
Rob Walker, the founder of LSI Logic and a pro bono filmmaker, has launched a DVD film, The Microprocessor Chronicles, a documentary on the history of microprocessor innovations. Walker says the technology, and the people behind it, changed the world.

Prankster Posts Sex Ad Replies Online (MSNBC.com)
The man aired responses to the ad online, including names, e-mail and IM addresses, and phone numbers. It's still unclear if the move violates any law.


5. In Depth: InformationWeek 500 Conference

Tom Peters On Innovation: Experiment 'Fearlessly'
Success can be a killer for innovation, organizational guru Tom Peters told the InformationWeek 500 conference this week. It's from failure that we learn the most valuable lessons.

'We Are A Company In Transition,' Says HP's Hurd
Hurd has identified three big growth areas: commercial printing and managing networks of printers, data center automation, and selling more laptops and handheld computers paired with better data security software.

GM's Massive Outsourcing Deal Up And Running
At the InformationWeek 500 conference, General Motors CIO Ralph Szygenda delivers a progress report about the largest IT outsourcing deal in history.

Yahoo CIO Talks Up New Ad Platform, Social Search
Lars Rabbe describes the company's new ad platform, its competitive position with Google, and the importance of user-generated content like Yahoo's Flickr service at the InformationWeek 500 conference.


6. Voice Of Authority

With Help From IBM, U.S. Biz Schools Teach Grads How To Move Jobs Offshore
While outsourcing technology work to low-cost countries like India can help companies cut costs and improve productivity, many such efforts go awry because they're not properly managed. The problem is that overseeing an offshore workforce takes multidisciplinary skills that few of today's managers possess. Several well-known biz schools, with help from IBM, are trying to change that.


7. White Papers

A Key Regulatory Compliance Question: How Secure Is Your Data Transfer?
U.S. regulatory compliance is no longer a minor irritant relegated to the backrooms of corporate consciousness. Corporate compliance has become a critical mission, and these hazards are amplified for the many businesses still predominantly using traditional file transfer protocol, or FTP, data transfer technology.


8. Get More Out Of InformationWeek

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