GM's Randy Mott: What I Believe... - InformationWeek

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GM's Randy Mott: What I Believe...
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ChrisMurphy
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ChrisMurphy,
User Rank: Author
3/31/2014 | 9:47:25 AM
Re: Mott misconstrues cloud services
His cloud skepticism definitely bucks the trend, Charlie. I can't think of any CIO I've spoken with that is as skeptical about the value to be had from cloud software. I'm looking forward to the on stage discussion with InformationWeek Conference attendees this week, to hear what kind of questions CIO peers ask.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
3/27/2014 | 5:44:17 PM
Mott misconstrues cloud services
When Mott says using cloud infrastructure and software as a service is a way to get even, not get ahead, he misconceives of what's going on out there. I agree it is a good idea to keep core IT skills in house, but they can be put to work effectively on cloud infrastructure and customizing SaaS, if that's what the CIO wants. He's thinking too much in-house resources are better than external ones. You don't have to be an advocate of outsourcing to make good use of the cloud. On the contrary, the cloud gives the internal managers control over the resource and allows them to use it as an extension of the data center. To misconceive this could be damaging to your long term prospects.
Lorna Garey
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Lorna Garey,
User Rank: Author
3/27/2014 | 1:32:24 PM
Re: Will the trend toward inhouse IT stick at GM?
At the size companies Mott leads, doing IT in-house seems to make perfect sense -- the scale is at least equal to what most outsourcers offer. For smaller companes the numbers are likely not as clear. 
RobPreston
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RobPreston,
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3/27/2014 | 11:49:34 AM
Re: Will the trend toward inhouse IT stick at GM?
This will stick. Randy Mott didn't believe in outsourcing when he was at Wal-Mart, Dell, or HP either, and he stuck to that philosophy. It's a core principle of his, going back 30 years, not a trendy move. From what I understand, GM's leadership is on board. Mott thinks insourcing not only will produce more IT innovation, but it will also cost a bit less. As Mott says, IT outsourcing vendors charge for "resource + margin," so there's no incentive for them to reduce resources applied to any given project or responsibility.
David F. Carr
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David F. Carr,
User Rank: Author
3/27/2014 | 10:46:59 AM
Will the trend toward inhouse IT stick at GM?
Do you think the direction toward bringing more IT inhouse will stick at GM, or will we see the strategy seesaw back to an emphasis on outsourcing? Many organizations identified outsourcing (and skill at doing it well) as a strategic imperative over the past couple of decades. Were they 100% wrong?


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