Reply to post: Haven't companies figured this out by now???

Santander hands over $700m to IBM in hopes of becoming incredible banking machine


Haven't companies figured this out by now???

I'm well aware that IT outsourcing deals are settled over lavish dinners, golf trips and strip club visits, but you would think that companies would be wise to the outsourcers' playbooks by now. We'll see what happens in 8 or 10 years when Santander's back on the "bring it all in house" cycle again.

It's not hard to understand...massively underbid the contract, include loopholes and omissions you could drive a train through, make up the difference by enforcing change order payments for anything not written in the contract, offshore all the workers to increase margin and do the absolute minimum work necessary to avoid losing the contract. I've seen it more than once and experienced a full outsource/insource cycle. It's not pretty.

What are they teaching CIOs in their MBA programs that blinds them to the fact that the outsourcer isn't there to help them, but instead to maximize profit?

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