IT Outsourcing - The GM Way

 
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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Case Details:

Price:

Case Code : ITSY046 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

-
Case Length : 14 Pages
Period : 1990-2005
Pub Date : 2005
Teaching Note : Not Available
Organization : General Motors
Industry : Automobiles
Countries : US

Abstract:

The case gives a detailed account of IT outsourcing practice at General Motors (GM), the largest automobile manufacturer in the world. It traces the history of IT outsourcing initiatives at GM and presents the benefits that were gained by the company from its IT outsourcing strategy. The case details how GM was able to use the learning from its initial outsourcing experiences to modify its outsourcing model. It further discusses how the innovative matrix structure of GM's in-house IT department played an important role in making its outsourcing strategy a success. This case highlights the importance of effective IT and business alignment for a successful IT outsourcing initiative.

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Issues:

Analyse the suitability and implications of an outsourcing strategy for a company's IT needs.

Study and analyze the problems faced with IT outsourcing.

Compare the advantages and disadvantages of in-house IT infrastructure development with IT outsourcing.

Study the role of matrix structure in the effective management of in-house IT department.

Contents:

  Page No.
Introduction 1
Background Note 2
Creation of Matrix Structure 3
Working of Matrix Structure 4
The Benefits 5
The New Outsourcing Model 6
The Future 8
Exhibits 11

Keywords:

GM, IT-Business Integration, IT Strategy, Business Process Outsourcing, Matrix Structure, Precision Strategy, Service Level Agreements, Vendor Management, ERP for IT Management, Process Information Officers, Process Improvement

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