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Published on 20 Jul 2012 | Viewed 430 times
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General Motors insourcing: what does it mean?
Twenty years ago, General Motors was one of the first corporations to outsource its Information Technology. It became a pillar of the outsourcing industry and, even during its recent financial troubles, the quality of its outsourcing process and contracting continued to be admired. The value of outsourced contracts rose to more than $3bn a year.
So it came as a surprise when GM announced last week that some 90% of its outsourced activities will be brought back in-house. What does this mean? Is it indicating a sea-change in attitudes to outsourcing, or due to circumstances that are unique to GM?
I certainly have my views about the possible drivers for this decision and also the potential implications to outsourcing more generally. But for now, I would very much like to hear your comments and views on this. If you prefer to keep them confidential (and I understand that some from within the industry may wish to do so) simply send me an email at tcummins@iaccm.com.
