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For the past three decades business process outsourcing ? or BPO ? has been touted as the economic answer to managing complex information technology operations. One of the world?s biggest deals was a decision by General Motors to embrace outsourced IT on a grand scale.

GM acquired IT services pioneer EDS in 1984, to which it handed responsibility for all of its technology operations. The outsourcing deal remained in place as EDS moved out of GM?s immediate orbit and was sold to Hewlett-Packard (HP).

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Now the carmaker has turned this arrangement on its head, calling for an army of IT staff to join up as it pulls technology back in-house. By the time this programme is complete only some 10 per cent of GM?s IT will be run out of house. Has outsourcing lost its siren appeal?

Answers to this question vary depending on which side of the divide the speaker sits. Consultants shake their heads at the naive way in which clients expect an outsourcing contract to solve deep-rooted problems. Internal IT managers ask bitterly why suppliers boasting massive expertise cannot untangle complexities in return for lucrative deals.

Talking to individuals who have taken personal responsibility for bridging this gap creates a clearer picture. Brian Chant has spent a large part of his career in IT working as an interim manager. Placed in yearly contracts by interim provider Alium Partners, Mr Chant is accustomed to turning round IT departments that have difficulties.

One of these temporary roles turned into a permanent post as chief information officer at Achilles, a UK procurement services business. Based in Oxford, the company assesses and qualifies potential suppliers for 750 corporate buyers across 23 countries .?Source

Source: http://www.bpo.biz/bpo-news-blog/2012/12/06/bpo-farming-out-it-is-no-cure-all-for-poor-processes/

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