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Outsourcing, adieu: companies retake the reins on IT services


“Almost as soon as the outsourcing deal was inked, it was an $800 million disaster.

The Fortune 500 company's seven-year, $120 million-a-year IT services deal had all sorts of problems from the beginning, according to an IT director whom we'll call Skip Currier (not his real name), who had a front-row seat to the debacle. 'From the beginning, the project was understaffed and overambitious. They didn't fulfil certain parts of the contract, and our executives didn't force them to,' he says with a sigh of exasperation. All told, the deal was badly executed and badly managed, with plenty of blame to go around.

It’s no wonder, then, that this organisation chose not to renew the deal and is bringing responsibility for deploying and managing technology back inhouse. It’s not alone, of course. The most famous recent example: CIO Randy Mott brought a broom into General Motors last year and swept 90% of its outsourcing deals out the door.”


NCC Weekly News Update 22 July 2013



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