Page Two

By eweek  |  Posted 2003-06-23 Print this article Print

How do you know if IT is advancing the business mission? The question is, do we have momentum? Are we moving forward and not sideways and not backward? It may not be the best solution, but if you can keep a company the size of GM moving forward, youre probably in good shape.
One thing makes IT easier at GM—its bid out. So we have three or four companies bidding on the work. That almost guarantees a competitive bid versus an internal IT environment.
When you get these proposals from the outsourcing providers, do you look at the technology theyre using? Do you want them to use a particular vendor? Not only that, we dictate the technology. I have to drive common technology standards or it would be chaos. I learned a long time ago that I have to have people that are stronger than the outsourcers. Thats how we manage our business here. Its very hard to do. Who do you see most often in outsourcing bids? When we bid on IT, we find three or four companies that can respond. They are large companies like Cisco, Lucent, EDS, IBM and Accenture. Thats a pretty small industry today. There is consolidation, and there probably will be more consolidation. Do you see the number of players ever increasing again? There will be startups again, and theyre starting to come out of the woodwork. Were getting to the bottom of the downturn in the IT business. There will be a slow rebound in the next couple of years. There will be more business process outsourcing and significant offshoring. Thats coming from pressure on corporations to cut costs. Margins are slim on vehicles so you have to make up the difference from cost reduction. A couple of years ago, as long as you spent a lot, you were kind of cool. Today, people are demanding some benefit.


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