Monday, August 08, 2011

GE Reduces Outsourcing

GE will be hiring its own IT talent in the near future instead of outsourcing the work to contractors like Wipro.

Here's the most interesting line of the story:

“About 50 percent of the IT work was being done by non-GE employees,” Charlene Begley, chief information technology officer, said in an interview at the center. “That strategy may have had its time, but there was a lot of downside. We lost a lot of the technical capabilities that we have to own.”

Well, yah.

The article contains a quote which alludes to 'political' influences.

Also this:

Collaboration’s payoffs are helping convince other U.S. companies to pull outsourced positions back in-house, said Fred Hochberg, president of the U.S. Export-Import Bank. 

“People in the business world, small and large, are finding that having your research and design all co-located has enormous benefits,” Hochberg said in an interview. “The manufacturing process informs the engineering process and then the engineering process informs the manufacturing process.

One wonders how that common-sense item ever escaped the "business world" in the first damn place.

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