Former CIO of HP, Dell, and Walmart is tapped for ability to 'transform global IT operations.' Will appointment mean less IT outsourcing for GM?
Randy Mott, one of the tech industry's best-known CIOs for his work at Walmart, Dell, and Hewlett-Packard, has been named to lead General Motors' global IT operation.
Mott will report to GM CEO Dan Akerson and be part of the automaker’s executive operations committee. Mott replaces Terry Kline, whom GM said left to pursue other opportunities. Kline had been CIO since 2009, when he took over for long-time CIO Ralph Szygenda upon his retirement.
Mott's appointment raises one immediate question: How much will GM continue to rely on outsourcers for its IT operations?
GM historically has relied on IT outsourcing more than most any other company in the world. That legacy goes back to its ownership of EDS, which GM spun out into an independent IT outsourcing company, becoming its largest client. Beginning in 2006, GM spread out its outsourcing work, then valued at about $3 billion a year, among multiple outsourcing vendors.
At Walmart, Dell, and most recently HP, Mott’s IT organizations have relied heavily on staffers rather than outsourcers and contractors. At HP, Mott slashed overall IT payroll in large part by eliminating contractor positions.
Mott led a massive transformation of HP’s IT organization, consolidating its 85 worldwide data centers into six new, U.S.-based data centers. In addition to payroll cuts, Mott automated more of the IT operation in order to have staff spend more time on new development projects.
Mott had no shortage of critics at HP, where in addition to cost cutting he forced business units to justify and prioritize every IT investment with a formal process documenting the costs and benefits. Mott left HP last year as part of then-CEO Leo Apotheker's shakeup of the executive ranks. (Mott is a member of InformationWeek's editorial advisory board. InformationWeek named Mott its Chief Of The Year in 1997 for his work at Walmart.)
Changing GM's long-standing IT culture is a tall order, regardless of whether the operation remains heavily outsourced. But in a statement announcing the move, CEO Akerson emphasized Mott's experience driving change and improving IT operations: "With more than three decades of information technology experience, Randy has demonstrated his ability to transform global IT operations. His visionary leadership and focus on execution will strengthen GM’s decision-making, reduce risk and improve our global infrastructure, data management and application development."
The Business of Going DigitalDigital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Join us for a roundup of the top stories on InformationWeek.com for the week of April 24, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week!