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General Motors Will Slash Outsourcing In IT Overhaul
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jsonice741
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jsonice741,
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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.
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.
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.
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 | 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.
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!!!
2sense
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2sense,
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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.
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.
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.
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.
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