For General Motors (GM) outsourcing is not just a way to cut costs it’s a part of their lives. Since the time GM had spun off its IT subsidiary it was contracting its tech work. This happened way back in 1996. Since that time GM has outsourced a number of suppliers such as Hewlett-Packard, IBM and Capgemini and a number of contractors worldwide.
The company has also standardized all the touchpoints for its process so that all the suppliers make use of a common interface in order to report information back to GM.
As per Lisa Gage, Director, GM’s IS&S Group:
When you grow as a company, you tend to have a lot of different groups operating independently. To go to a global management structure you need to knit them all together. The more we drive standardized work, processes, and infrastructure, the less complexity we will have.
