nowi2

GM's Last Fatal Mistake

I had talked to a person who works at a software company who provides software services to GM. I heard GM operates very inefficient. GM spends lot of money on software projects, though they are not needed. I understand need of software for inventory etc. But they over spend on unnecessary applications for employees to access. I was told that lot of these applications are not needed and these are rarely needed changes. I was also told that maintaining call center employee requires lot less than developing and maintaining all these applications.
Here is another main issue. GM does not have software division. They ask a consulting company for a quote. The consulting company again gets quote from subcontracting company. Finally, on top of these, GM software manager adds margin to cover their costs and provides project budget to GM as internal customer. I was told that GM will save money if they can do in house.

There is also lot of expenses from retired employees who spends hundreds of thousands of dollars for operations in Uk etc. They have to look at statistics and find better ways to manage. IBM also company that exists long time. They also have retirement benefits similar to what GM have. But IBM is doing better. I hope GM management can evaluate all these and operate better in future.