Sears ends $1.6 billion deal with Computer Sciences

TalkBack 9 of 10:

Next »

« Previous

• Thread View
• Flat View

Outsourcing everything is dumb

Some parts of IT can be outsourced such as operating a data center - if it is part of a large installation serving other customers as well. Outsourcing everything is dumb - especially for a company the size of Sears.
IBM, EDS and CRC are in it for the profit. Their costs aren't any less than what Sears could hire the same work force for, plus a return to shareholders.
The problems with outsourcing are the same as when acquiring a car; dealer and manufacturer commit to a limited warranty and maintenance plan. Should you want to add a 'feature' to your car after the fact - don't look to your dealer for it unless you have money to burn. Also, cost of spare parts and work outside the 'warranty' is prohibitive. Generics or third party is cheaper - and most departmental managers know this, but are prohibited by the contract to pay less elsewhere. It's like savings from a lease is eaten away by 'extra' miles and cost of comprehensive insurance. In some cases profit center managers see no savings at the departmental level - all savings are realized at corporate level, resulting in bad blood between contracting parties 'in the field'.

"Constant pursuit of savings will eventually lead to evaluating the value of dealing with customers at any level." - TrustMe

Posted by: TrustMe_z   Posted on: 05/18/05 You are currently: a Guest | Members login | Terms of Use

Alert moderator to an offensive message

Subscribe to this discussion via Email or RSS

SponsoredWhite Papers, Webcasts, and Downloads

• Three Steps You Need to Know to Stop Data Loss Varonis Sensitive data exposed to misuse or loss... it is the stuff of nightmares ... Download Now
• Building the Virtualized Enterprise with VMware Iinfrastructure VMware VMware virtualization software has been adopted by over 120,000 enterprise ... Download Now
• Why Isn't Server Virtualization Saving Us More? A Few Small Changes May Dramatically Increase Your Efficiency VMware Companies have rapidly adopted server virtualization over the past few ... Download Now