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INSOURCING

In a recent blog, I talked about offshoring and how the perceived benefit of paying a lower wage can be more than offset by a slew of disadvantages.  Not the least of those disadvantages is a lack of control over “your” programming staff.

This was reinforced by an article that I recently read in InformationWeek: read more here

Apparently, about 90% of General Motors’ IT services, including application development, is outsourced to a variety of domestic and offshore providers, and only 10% is provided by GM employees.  GM’s new CIO, Randy Mott, plans to flip those numbers in about three years, so that 90% of their IT services are provided by GM staff.  They are “insourcing” their IT.  “As part of that effort, it plans to create three new software development centers, all of them in the U.S.”

“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.”

Amen.

Doug Deane is President of DSD Business Systems, a national provider of on-demand (cloud) and on-premises ERP and CRM software, specializing in wholesale distribution, manufacturing, warehouse management, inventory, business intelligence and eCommerce software.  DSD offers Sage 100 (formerly MAS 90), Sage 300 (formerly Accpac), Sage 500 (formerly MAS 500), NetSuite, Sage FAS, Sage HRMS (formerly Abra), Sage CRM, Sage SalesLogix, Extended Solutions, and Custom Programming.

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