A little over a year ago, JPMorganChase canceled its $5 billion outsourcing contract with IBM Global Services and brought its technology operations back in-house.
Says CIO Austin Adams:
"The decision to cancel the outsourcing deal wasn't driven entirely by cost savings... It was about our belief that we wanted to be more involved in every aspect of our business, and technology is a significant part."
And this belief has proven true. The bank is now seeing cost savings from better leveraging of software and hardware deals, and is seeing excellent operational efficiencies as well.
For project managers, this can bring additional benefits, such as having the right know-how in house, and avoiding the need to manage across multiple organizations.
In general, while appearing to be a silver bullet, outsourcing can have negative effects on morale and can damage communities as well. Furthermore it doesn't always bring the cost-savings it promises and puts the organization at the mercy of its vendors. Collectively, there's no telling what the long-term impact will be on the United States.
Companies such as Toyota practice long-term thinking, pride of workmanship, and remain community-focused, with good results. Cheers to JPMorgan Chase.
Here's the full article from Baseline Magazine. There's also an interesting sidebar called "Can You Outsource Project Management?"
JPMorgan Chase Retakes Control of I.T.Labels: business-impact, business-results, cancel, cio-perspective, global, ibm, it-project, outsourcing, project-cost, results
