In an effort to remain competitive with BMW and Volkswagen, Daimler (DDAIF.PK) looks to cut IT...


In an effort to remain competitive with BMW and Volkswagen, Daimler (DDAIF.PK) looks to cut IT service spending by €150M annually by H2 2016, Reuters says, citing Automobilwoche. Part of the plan will include bringing back outsourced IT systems from SAP.
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Comments (3)
  • taplinger
    , contributor
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    It's funny that when CEOs flounder, they come up with crap like this and the BOD puts up with it. Daimler's CEO ought to have lunch with Jeffrey Immelt - they could have a mutual admiration society.
    9 Jun 2013, 11:14 AM Reply Like
  • Derek A. Barrett
    , contributor
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    I would be curious to see the technical details of the systems being brought back in-house.

     

    I have always believed outsourcing core systems is a short-term cost saver which causes much more long term cost.

     

    The benefit of outsourcing is that its savings can be applied to the balance sheet, whereas the costs it causes (quality control, customer service, for example) are not always captured quantitatively.

     

    There are exceptions to that rule of course but just my opinion.
    9 Jun 2013, 12:38 PM Reply Like
  • taplinger
    , contributor
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    I've seen outsourcing done very well and very poorly, and I've seen in-house IT departments run the gamut from great to horrible. When a CEO flip-flops and goes back and forth, that's a sign of a desperate CEO.
    9 Jun 2013, 07:19 PM Reply Like
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