JOBSEARCH: Insource and outsource seem to be an unfair labor practice

Tuesday, July 17, 2012

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gManZboy writes “GM’s new CIO Randy Mott plans to bring nearly all IT work in-house as one piece of a sweeping IT overhaul. It’s a high-risk strategy that’s similar to what Mott drove at Hewlett-Packard. Today, about 90% of GM’s IT services, from running data centers to writing applications, are provided by outsourcing companies such as HP/EDS, IBM, Capgemini, and Wipro, and only 10% are done by GM employees. Mott plans to flip those percentages in about three years–to 90% GM staff, 10% outsourcers. This will require a hiring binge. Mott’s larger IT transformation plan doesn’t emphasize budget cuts but centers on delivering more value from IT, much faster–at a time when the world’s No. 2 automaker (Toyota is now No. 1) is still climbing out of bankruptcy protection and a $50 billion government bailout.”

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So, let’s understand this. The Gooferment bailed out GM and all the people who work in the outsourcing companies will now be disrupted. Argh! These disruptions — both when companies “outsource” and when they “insource” — just whipsaw the people. 

Time for a complete rethink.

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