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6/28/2012
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General Motors Will Slash Outsourcing In IT Overhaul

GM's new CIO Randy Mott plans to bring nearly all IT work in-house as one piece of a sweeping IT overhaul. It's a high-risk strategy that's similar to what Mott drove at Hewlett-Packard.

As Randy Mott, the new CIO of General Motors, goes about his workday, he carries with him a well-worn calculator. It sits in front of him in the place of prominence that most people reserve for a smartphone.

Mott, who has been CIO at Wal-Mart, Dell, and Hewlett-Packard and joined GM in February, believes in numbers. And as he tries to transform GM's IT operations, he plans to flip one set of numbers on a scale that no CIO has ever done before.

Today, about 90% of GM's IT services, from running data centers to writing applications, are provided by outsourcing companies such as HP/EDS, IBM, Capgemini, and Wipro, and only 10% are done by GM employees. Mott plans to flip those percentages in about three years--to 90% GM staff, 10% outsourcers.

Insourcing IT on that scale will require GM to go on a hiring binge for software developers, project managers, database experts, business analysts, and other IT pros over the next three years. As part of that effort, it plans to create three new software development centers, all of them in the U.S. IT outsourcers, including GM's one-time captive provider, EDS, face the loss of contracts once valued at up to $3 billion a year.

This dramatic move away from outsourcing is just one piece of the "IT transformation" Mott is leading, which includes consolidating data centers and applications, centralizing IT planning and execution, and getting a better grip on GM's customer and production data. GM's IT transformation doesn't emphasize budget cuts but instead centers on delivering more value from IT, much faster. In many ways, the foundation Mott is laying is similar to the one Ford started laying four or five years ago as part of its One Ford/One IT initiative.

The overhaul Mott envisions puts the everyday operations of GM at risk during a time when the world's No. 2 automaker (Toyota is now No. 1) is still climbing out of bankruptcy protection and a $50 billion government bailout. GM's factories, supply chains, and financial reporting rely on the IT organization to keep information flowing in near real time on a global scale. The fact that Mott's boss, CEO Dan Akerson, would bless this level of IT change and accept this level of risk at a still-fragile stage of GM's recovery shows how essential the best data and technology are to the company's future.

GM CIO Randy Mott
GM CIO Randy Mott: How GM's IT pros spend their time is "upside down"

Akerson "was looking to make changes in the speed and cadence of the company," Mott says. "Whether it was with me or someone else, Dan Akerson was going to do an IT transformation here."

Mott's philosophy on outsourcing at GM, as it was at HP, Dell, and Wal-Mart, is that the company needs more creative, business-changing ideas from IT, and IT teams need to deliver those innovative projects faster. Mott doesn't think GM can be creative or fast enough with outsourced IT. "When the business says 'go,' then that means we start working on a contract, we don't start working on a project," Mott says of the current outsourced model. (Mott is on InformationWeek's editorial advisory board and was named our Chief of the Year in 1997, when he was at Wal-Mart.)

The shift away from outsourcing is only the most dramatic element of Mott's IT "transformation." The plan, approved by Akerson and the rest of the executive operating committee, comes straight out of the playbook Mott has developed over a three-decade career in the retail, high-tech, and now automotive industries. Mott's plan for GM is nearly identical to the one he led at HP between 2005 and 2008 under CEO Mark Hurd, before Hurd and then Mott got bounced in an executive shake-up.

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CBess
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CBess,
User Rank: Apprentice
7/9/2012 | 2:19:29 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
One of the things that is a bit humorous about the statements in this article is that many of them are the exact same as what was said back when GM bought EDS. I was part of GM back then.
ChrisMurphy
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ChrisMurphy,
User Rank: Author
7/9/2012 | 2:42:15 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
That's an interesting long-term perspective. Any examples?
MyW0r1d
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MyW0r1d,
User Rank: Strategist
7/9/2012 | 3:32:49 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
Agree with CBess in that non of the initiatives are truly innovative (that haven't been a part of most firms plans the past 5 years) and that is not to say 2-3 years isn't aggressive to bring it all back in house. It is another high level contradiction to those which continue and support sending US IT jobs to overseas out sourced markets because local talent is inadequate.

I would have recommended further geographic separation among the DCs maybe one colocated with one of the SDCs (nuclear conflict is a remote possibility but as we have seen with Amazon's clouds and current heat waves, electrical outages can still impact a large geo area).
Wakjob2
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Wakjob2,
User Rank: Apprentice
7/9/2012 | 6:20:26 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
Well, what do you know - some American business execs finally get it. Everyone here does know GM was booming in 2006 - until it signed a $300 MILLION outsourcing deal with India's WIPRO. Guess that didn't work out too well for GM because they went bankrupt 2 years later due to Wipro's incompetence. Now American execs are waking up to the India, Inc. con.
SRV
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SRV,
User Rank: Apprentice
7/9/2012 | 8:14:30 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
To Wakjob2:

You are the same troll who visits multiple web sites and blogs, bashing all Outsourcing/IT services companies, especially Indian outfits. Your reasoning for GM's bankruptcy being the signing of a piddly $300MM outsourcing deal with WIPRO shows your utter ignorance and pathetic racism. There's a good proverb that's applicable to you: "It's better to remain silent and be thought a fool than speak and remove all doubts". Just apply that to posting on all blog sites, you moron.
jsonice741
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jsonice741,
User Rank: Apprentice
7/11/2012 | 9:21:02 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
Maybe but his sentiment is correct. Outsourcing is stupid.
KCannon
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KCannon,
User Rank: Apprentice
7/10/2012 | 9:09:39 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
GM was booming in 2006? And it only took 2 years for Wipro to drive them to bankruptcy? REALLY!!!
Leo Regulus
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Leo Regulus,
User Rank: Apprentice
7/9/2012 | 7:25:36 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
(Showing my age here) There used to be a 'Union' label on purchased goods that were 'Union Made'. Now we seldom know what percentage of a purchase price goes off-Shore. GM & other companies keeping jobs on-shore need to be supported. Let's stay with them!
joelapp
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joelapp,
User Rank: Apprentice
7/9/2012 | 7:31:44 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
while it is easy to agree with your sentiment, it is entirely unrealistic when it comes to IT.
joelapp
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joelapp,
User Rank: Apprentice
7/9/2012 | 7:38:55 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
GM has yanked the HP/EDS chain ever since they sold their IT off. Each contract they tend to contradict the requirements from the previous one. This "new idea" is another example of GM's continuing IT services pullback since around '04. A lot of those thousands of applications mentioned in the story were a result of the decentralization effort they made in the early 2000's - letting the plants do more development. They then cut back a huge number in an effort to "commonize" their apps prior to the '06 contract and now they are just continuing to move in that direction and that led to HP job cuts. So, in reality, this is really nothing new.
ChrisMurphy
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ChrisMurphy,
User Rank: Author
7/10/2012 | 1:29:17 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
Moves like commonizing and consolidating apps aren't new tactics for GM. But I think moving from hugely outsourced to hugely insourced is a very big and new shift, and one that comes with a lot of risk. Hiring that many people while building the culture GM needs will be a major leadership challenge.
Sam Iam
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Sam Iam,
User Rank: Apprentice
7/10/2012 | 12:19:42 AM
re: General Motors Will Slash Outsourcing In IT Overhaul
I agree that these are not new ideas. "Revenue of IT", "business value driven IT", "business aligned IT" and other popular phrases for tying IT spend to ROI have been around for decades. The problem is that the juice, generally, isn't worth the squeeze. Yes, you can probably hammer down a fairly comprehensive ROI for projects if you have a dozen analysts working on the numbers, DCFs, NPVs, etc, but, except for very large projects, the cost of the analysis and the bureaucracy consumes the gains. All of this analysis on ROI also makes it really complex to do anything as building the business case is such a hassle. Also, many IT projects don't have a clear cut ROI even though there is a clear cut need. What is the ROI on a collaboration application or an intranet portal? There may be some productivity gains, but it is a far stretch to say those productivity gains will hit the bottom line. Likewise with social media development, mobile consumer apps, etc. It is pretty difficult to determine that for every dollar spent you will receive $x in ROI. It is generally more cost effective and faster to just let managers make some judgement calls under a certain dollar amount.

On the age old application rationalization and data center consolidation topics, no one created 4,000 applications because they thought it would be more cost efficient than 40. They did it because they needed to get things done without going through the months long change management process of adding a field in SAP or some other enterprise wide application to ensure their change does not have an unforeseen impact on some other user group. By the time changes are made in centralized organizations, the requester usually has moved on or found a manual work around. Everyone has a slightly different task they are trying to perform and everyone needs their change requests processed now. Consolidation equals cost efficiencies, but they generally do not equal agility or speed to market efficiencies. You end up with a really cost effective IT organization that does not meet any group's needs particularly well. The same reason that local fire departments are not managed at the Federal level.
Marrach
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Marrach,
User Rank: Apprentice
7/10/2012 | 2:22:20 AM
re: General Motors Will Slash Outsourcing In IT Overhaul
Let me put another spin on this--

Consultants and Outsourcers came into the picture because, frankly, a lot of Internal IT Dept's were all about inertia and maintaining the 'Sacred Mainframes'

Back then, the Consultants and the outsourcers WERE the Breath of Fresh air-- introducing the new technologies and new ways of thinking.

But that was years and years ago. NOW-- the Consultants and the Outsourcers are suffering the same poison of Inertia, Inability to Change and Lack of Nimbleness to adapt to new circumstances. The Article is right-- if you need a change, you need to re-negotiate the Contract-- and then the outsourcer/consultant ONLY gives you what they see outlined in the contract and not ONE line of code more.

People, that's the attitude that's KILLING Business.

Add to it the unspoken truth that a Lot of current CIO's are CIO's in Title Only. Many of them just dressed up Executives who rotated out of the CFO's staff. They can rotate an Excel Sheet and open a PowerPoint...and BadaBoom!.. they're Instantly qualified to say what is and Is Not crucial to a company's IT force.

The Consultants LOVE these overdressed Executives. They ask no Hard Questions. They NEVER KNOW ENOUGH to understand when they are being sold a bill of worthless goods. And even when they have Competent IT staff to ask the relevant questions, they willfully ignore the Opinions of the 'Drones' below the Executive Suites as too troublesome. So the Consultants come in, they complement each other on how sharp their suits look, they do a 'Business Lunch' where NO HARD QUESTIONS are asked, and then the bubbly is popped when the contracts are signed..Here, here...and here, thankyou!

Mr. Mott needs to clean out the upstairs IT Executive ghettos. So do a lot of other American Companies. I say, it's about time!
JimC
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JimC,
User Rank: Apprentice
7/19/2012 | 12:19:54 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
Being a software salesperson who started in IT as a COBOL programmer 30+ years ago, I'll state that the mess began in the early '80s when the CIO position was created. Although part of the C-suite, that executive spot was often wedged between the CFO and the former top data processing spot, the Director of Management Information Systems. The VP of IT became the new title for the Director of MIS, but (s)he often answered to and had a budget controlled by a non-technical CIO who came from finance or was an LOB executive. From my perspective, the "wheeler-dealer," "wrap & roll" software sales started in May '85 when software vendor Computer Associates introduced CA-Unicenter as a collection of acquired mainframe products. The pitch was financial and made to the CIO, who would then force his/her subordinates to use what was just licensed. This CXO-level "enterprise sale" was the model used for outsourcing because the CIO remained employed while the "IT people" were simply disenfranchised drones below him/her who were thrown out into the snow. The most effective hardware/software/outsourcing salesperson today can be described as young, a golfer and having a degree in Theater Arts plus an MBA. It's become people who don't know what they're selling telling lies to people who don't know what they're buying. It works perfectly for: dropping the mainframe, big-ticket software sales (database, ERP, etc.), outsourcing, nearsourcing and data center construction.
Andrew Hornback
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Andrew Hornback,
User Rank: Apprentice
7/10/2012 | 2:28:01 AM
re: General Motors Will Slash Outsourcing In IT Overhaul
Well, the UAW has to be salivating over this planned expansion at GM... I can't imagine that they would simply let this pass by without trying to organize this new influx of IT workers under their Technical, Office and Professional workers group.

I would think (and hope) that that's something that's been considered when building this strategy - but if it hasn't, someone should get Mr. Mott a case of new batteries for that calculator, it's going to have a lot of work to do.

I'm also guessing that HP stands to win big on this strategy.

"Would better collaboration tools help engineers and designers be more creative?" - I sure hope so, and soon for the designers at Cadillac. Ever since they redesigned the logo, they seem to have forgotten how to design cars...

Andrew Hornback
InformationWeek Contributor
Sam Iam
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Sam Iam,
User Rank: Apprentice
7/10/2012 | 4:24:15 AM
re: General Motors Will Slash Outsourcing In IT Overhaul
Why would HP win big on this strategy? They are the primary outsourcer, through EDS, of these contracts which will be cancelled. HP will likely lose the most. Also, I doubt Mott has a soft spot for the company that just pushed him out.
spectrum
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spectrum,
User Rank: Apprentice
7/10/2012 | 7:26:41 AM
re: General Motors Will Slash Outsourcing In IT Overhaul
Finally Someone who gets it, software architecture is moving from fairly static workflow model to real time event driven workflow. Unfortunately the delegated bureaucracy model of the mainframe era can no longer function well in the real time event drive future into which all software systems are headed. The budget manipulators cannot no longer be at the top trying to cut costs by delegated bureaucracy to low cost disinterested parties continually finding ways to bleed the host corporation. Put 10 top level working architects who can deep dive into any new technology at the top of the organization and you will be able get consensus and propel any large enterprise effectively into this brave new world. Engineers got the united states to the moon.
2sense
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2sense,
User Rank: Apprentice
7/10/2012 | 4:40:36 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
I wonder if Randy's compensation is tied directly to the success or failure of this undertaking. My guess is that he'll get paid handsomely no matter what happens. And if things really get bad, he can always strap on his golden parachute.
HP Survivor
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HP Survivor,
User Rank: Apprentice
7/11/2012 | 3:47:09 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
HP is still cleaning up the mess left by Mr. Mott's last "IT Transformation". The bloated and inefficient bureaucracy created by that 'transformation' hampered development tasks and crippled R&D teams with endless rounds of "requests for changes" or filing exceptions on the most ridiculous minutiae. It held development teams responsible for downtime on systems/servers they were not allowed access to. It was often the case where mission critical applications were mysteriously altered or brought down by Gǣrequired patchingGǥ then left in dysfunctional states G which were then blamed on the application teams who had no knowledge that the patching was being done. It created an environment where it was nearly impossible to get competent DBA assistance to do the most routine of tasks, and even that level of GhelpG required the filing of endless exceptions or spending valuable development time trying to figure out how to engage a DBA team to assist in troubleshooting an issue they created. This disaster was wrought by the brutal insistence that IT spend should be at or less than 1% of total revenue. As a result, critical domain knowledge and experience was lost in wave after wave of layoffs and IT GǣsupportGǥ was offshored.

Adding insult to injury, many of the people who helped hone The Train Wreck That Randy Built were toadies who followed him from Dell or Walmart. Upon arrival, these people were promoted above their competence level over long time HP folks who actually knew something about the business and how to work in distributed, global teams (the Peter Principle is very much alive, well and thriving at HP as a result). The GǣDell-MartGǥ crowd, as theyGre still disparagingly referred to, proceeded to make a royal mess of things and run roughshod over everyone and everything that got in their way. Not surprisingly, many of the Dell-Mart crowd is now tendering their resignations G many of whom will undoubtedly land at GM to repeat the destruction they brought down on HP. Killing Saturn was one of GMGs more boneheaded moves, bringing in Mr. Mott to GǣtransformGǥ their IT house will likely prove to be yet another.

During Mr. MottGs HP tenure, warehouse consolidation, new development centers G two of which were GǣconsolidatedGǥ in Texas (Houston and Austin) because Randy lives in the state, with a third being located in Atlanta G left critical data centers vulnerable due to natural weather problems frequently encountered in that part of the country. It wasnGt just a case of grumbling amongst the rank and file, the Gǣnew and improvedGǥ IT infrastructure was universally reviled by everyone who wound up being crippled by it. So much so, that HPGs new CEO and CIO ushered in a program known as Bureaucracy Busters to solicit feedback from employees in all levels of the company about how the vestiges of process paralysis created by the glorious IT Transformation could be improved. In the first two weeks of BBGs existence, the program received thousands of requests from employees all over the company and is well underway in an effort to clean up the damage created by the previous CIO and his cronies.

The IT press seems to have almost universally loved Randy and his time at HP. HP insiders who managed to survive the Mott and Hurd reign of destruction will tell you a very different story indeed.
ChrisMurphy
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ChrisMurphy,
User Rank: Author
7/11/2012 | 6:55:02 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
It's one of the pivotal questions -- do the controls Mr. Mott brings in feel like efficient allocation of scarce IT inside GM, or needless bureaucracy for a company trying to move faster? I've asked him about this topic more than once. He says the process scales with the task -- small project, small cost-benefit analysis. He acknowledges there's a learning curve until the planning process doesn't feel like extra work. But he says you need the data to make good decisions and show what IT's delivering.

One critical distinction in this effort -- GM isn't pushing for huge cost cuts from IT ops, the way HP was.

HP Survivor
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HP Survivor,
User Rank: Apprentice
7/11/2012 | 9:26:08 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
As always, the trick is to separate the curriculum vitae-speak from the reality in the trenches. There was, and still is, a very real and measurable detrimental impact to development teams across HP because of this "transformation". Those of us who are still here are living this nightmare day in and day out. The bureaucracy, and the process paralysis it spawned, are very real - the current CEO and CIO wouldn't be spending a significant portion of their time figuring out how to reverse that damage if it weren't.
PostCent
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PostCent,
User Rank: Apprentice
7/12/2012 | 4:57:49 AM
re: General Motors Will Slash Outsourcing In IT Overhaul
Mott has never stayed long enough to be truly an insider who knows the business. It is probably because he made too many enemies while carried out the changes. An helicopter executive who does not have enough domain knowledge. Maybe a train wrecker / party crasher who leave before someone else realizes so.

What is HP doing now that the infamous NeoView is no longer in development? Do you call that a good decision by the CIO? Remember that Walmart was the poster show case trial customer? What happened?

HP IT support basically became IT no support, as it was how it was referring to by many insiders. It was a joke. Email problem? Good luck to having someone to help you. It works when it is working. When it doesn't, good luck. How is that lost productivity being measured? No one did. Cost cutting to beyond the bone is not a way to run your business and sustain it. Mark and Mott knew it and they bailed.
jsonice741
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jsonice741,
User Rank: Apprentice
7/11/2012 | 9:22:37 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
HP's problem is not Randy Mott but its board of ineffective idiots who appointed the likes of Carly Fiorina, the moron from SAP and then fired he smart guy and hired an idiot.
HP Survivor
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HP Survivor,
User Rank: Apprentice
7/11/2012 | 10:46:02 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
HP's board has certainly been complicit in most of the maladies that have befallen the company over the past decade. Mott was simply a symptom of that dysfunctional collection of overpaid board members - as was Carly Fiorina, Mark Hurd and Leo Apoteker. Meg Whitman was part of that Board for a time, and it remains to be seen how she'll deal with the fallout of what she helped to sow.

However, more to the point of this article, Mott was often hailed by the IT press as the savior of HP's IT infrastructure. My point was that nothing could be further from the truth. When you strip away the puffery and executive speak, the mess he created, then left behind, at HP will take years to clean up. The ROI and/or money saved by his so called transformation looked good up front on whatever spread sheet was passed around in executive meetings. However, like most such spreadsheets, it failed to calculate the backend costs of productivity losses in R&D groups who spent more time filling out ridiculous forms and getting run around in circles than they did coding.

There are very good reasons why the current CIO is working hard to dismantle much of Mr. Mott's handywork. The hope is that the rest of the Dell-Mart cronies will find greener pastures elsewhere. Good luck with that GM.
jsonice741
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jsonice741,
User Rank: Apprentice
7/11/2012 | 9:19:46 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
This is a smart move on Mr. Mott's part. Outsourcing is a stupid strategy and only companies in trouble and with weak and ineffective management outsource.

IT is not a luxury but a necessity for any company to run effectively. Handing over the company's data to an outsourcer is plain unadulterated stupidity.

GM has made some bad decision's. They are finally doing something smart.
jpattyn570
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jpattyn570,
User Rank: Apprentice
7/13/2012 | 5:24:25 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
I am glad to see companies going back to insourcing. One thing that I saw in this article that really concerns me is how the government can allow the "Michigan's power company" which is a critical part of the USA Infrastructure to be outsourced outside of the USA. I am not comfortable with foreign countries controlling our power, water or communications.
MasterSteve
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MasterSteve,
User Rank: Apprentice
7/14/2012 | 8:01:22 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
As a former Sr. IT Staff member at GM, what really slows down the process of new development are 2 things: 1. There is no alignment between the various business teams - each one operates independently and differently - IT has to therefore develop different processes to satisfy the stakeholders.

2. IT itself has bureaucratic processes - the "gate" methodology requires every milestone to pass through exhaustive checks and documentation, almost like a huge waterfall methodology. Each project has to provide so many metrics and dashboards that are of no value.

Blaming outsourcing companies has become the fashion these days - US companies must challenge outsources to bring innovation. For example, most companies keep IT architecture, platform decisions, data architecture and other big pieces within the company and outsource development and testing. Where is the innovation possible here?

If companies like GM stop outsourcing and we protest too vehemently, why does GM have to sell cars in India and Brazil? Why don't you sell only to Americans? This kind of double standard will not work in our favor in the long run. Only because of outsourcing has purchasing power increased in other markets where we sell our products.
BigSzu
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BigSzu,
User Rank: Apprentice
7/16/2012 | 11:36:37 AM
re: General Motors Will Slash Outsourcing In IT Overhaul
I just wonder if the new strategy will anyhow touch Opel/Vauxhall and the old mainframe systems. It's hard to imagine that there are still engineers that know how to administer the Rue one...
Cloud Convert
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Cloud Convert,
User Rank: Apprentice
7/20/2012 | 10:09:06 PM
re: General Motors Will Slash Outsourcing In IT Overhaul
IGm affraid that I agree with what Mr. HP Surviror writes.
Mr. Mott has a proven track record
* GM staffers should be prepared to see understaffed key capabilities to meet to meet financial goals. Randy will ruthlessly ensure that is the case to show positive ROI and reap the resultant benefits.

* He has a strong belief that most core IT work can be performed by just a few hourly workers if you just put enough process into it (what we are stuck with today). IGve seen first hand on numerous occasions how 100s of man hours would be spent to make a 5 minute change. The frustration with the soul crushing process (designed so that college new hires or less could do the work) has resulted in HP loosing great talent (voluntarily). His statements have lots of fluff but he has left a legacy of bureaucracy that is stripping HP of precious resources to fix. A discussion with a Dell employee indicated that they are still trying to recover from the reign of Randy

* Randy will always deliver financial results to his superiors using short term tactics. One example has left a company that once had strong intranet management, search, collaboration technologies in ruins at a company that canGt afford to fix it.

* Motts Gǣdeliver in weeks not monthsGǥ was achieved by using metrics to drive for time delivery and left no time to test applications that were delivered. Reality was that the value of test was ignored and assumed the business would do it.

* The plan of record process (POR) has crippled HPGs ability to deliver and the current HP CEO has publicly stated Gǣit clearly doesnGt workGǥ. The process eliminated any improvements to applications (even sick applications) because they would never make the cut line for return on investment as compared to some other flashy capability. Most apps would be delivered and then put on life-support until some pain threshold was exceeded.

* Mr. Mott reduced the cost to support HP assets by reducing assets and not staffing support. Applications are quickly assembled by understaffed teams and then left with Gǣlow cost centerGǥ to support. Support means just reboot if needed.

* HPGs grand data was a disaster due to abysmal management by one of his stooges and the culture style of their approach. Treating finance and existing HP staffers like idiots led to alienating people he would later need to be successful. After over a year of effort, success was decreed when just a few testers could get some data out. It couldnGt scale and would crash under simple queries. He ignored existing HP workers when they tried to explain that a data warehouse would need to fix many of HPGs long term data issues, brushing them off as idiots or complainers. HP spent the next several years trying to get their data warehouse to work and continues to struggle with it today.

* Probably the biggest impact crater was the culture brought to HP. Management via soul crushing metrics, inability to build relationships or even care, and management by scare tactics by his yes-men. Mr. Motts first meeting with R&D engineering was an example of how he (and certainly his lieutenants) would conduct themselves by announcing that he now owned all of their networks, software and infrastructure. From now on R&D had to only supply requirements and his team would work to find the lowest cost fit. Mr. Mott had never worked at a company that had world-wide R&D teams, and the varied technical products and needs yet treated existing HP IT and management as incompetent boobs and R&D engineers as just a bunch of complainers. This attitude, lack of staffing, and management tactics quickly infected IT..

Mr. SurvivorGs comment about cronyism are right on but he forgets to mention that HP IT is still saddled with this poor management at a time they can ill afford it.
GmHPcontract
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GmHPcontract,
User Rank: Apprentice
9/4/2012 | 9:28:08 AM
re: General Motors Will Slash Outsourcing In IT Overhaul
GM is going to END the service agreement with HP in September.

The HP workers at GM were told that between now and February all HP workers both in the US and world wide would be converted to GM.

GM will be paying fines for getting out of the contract early.

GM will assume all liabilities,for the current HP workers.
schowdary951
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schowdary951,
User Rank: Apprentice
3/31/2014 | 10:11:27 PM
Time for an update on GM's IT
Great article. I think the readers would love to get an update on progress made at GM.
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Our new survey shows fed agencies focusing more on security, as they should, but they're still behind the times with cloud and overall innovation.
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In this special, sponsored radio episode well look at some terms around converged infrastructures and talk about how theyve been applied in the past. Then well turn to the present to see whats changing.
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Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.