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It's all about short term profits, new person comes in, increase profits by slashing costs. They look good and move on up or to another company and do the same. By the time the issues of poor support and quality start affecting the business no one remembers who instigated the whole thing. It's a good way to move on up the ladder for these execs.
It's all about short term profits, new person comes in, increase profits by slashing costs. They look good and move on up or to another company and do the same. By the time the issues of poor support and quality start affecting the business no one remembers who instigated the whole thing. It's a good way to move on up the ladder for these execs.
The quality of service will suffer but will it remain good enough ? M&S hope it will. They are gambling that their competitors also have a half-assed IT function, with a barely "good enough" service.
The quality of service will suffer but will it remain good enough ? M&S hope it will. They are gambling that their competitors also have a half-assed IT function, with a barely "good enough" service.
But the reality is that it will cost them more to get a crap service compared to what they have today. The projected savings on these deals are never realised, the opposite happens. Once the procurement is done then its handed over to delivery folk who are generally contractors or consultants. Delivery is focused on one thing only and that is getting it delivered on-time. There is no management to ensure that the contracted costs for transition are adhered to. When the service goes live then its usually significantly different to what was envisaged at the outset and guess what... its far more expensive. I have seen this over and over again, its par for course at this stage
I'm not that astonished. I've seen some amazingly bad decisions made but people won't speak out. They don't want to lose their job/pension/position so people go along with it. I remember a guy who was made redundant, hired back as a consultant and he spoke to the CEO of large company that you have all heard of.
He was up front (nothing to lose) and told him the mess that was happening. The CEO had no idea and asked why aren't I being told about this. Shoot the messenger an all.
Exec and management in our country are not trained and they are expected to make results fast in the short-term, so they make bad decisions. Then you have the sociopaths who understand this and play it to their advantage.
The people that care and really understand a business are just fodder and in my experience of medium to large companies they rarely make it to the top, though there are exceptions.
It seems the jobs will stay where they are. However Tata will be used to cut their cost. So the quality will go down.
M&S have much to learn.
I was there 20 years ago, and they had a room full of Wipro bods - see what I did there - who were far worse than useless. They put a major rollout back by over a year because they weren't testing it properly. M&S didn't learn then, and they won't learn now. Still, much cheapness is good, yes?
His heart is in the right place - shame we can't say the same about his brain...
It's all about short term profits, new person comes in, increase profits by slashing costs. They look good and move on up or to another company and do the same. By the time the issues of poor support and quality start affecting the business no one remembers who instigated the whole thing. It's a good way to move on up the ladder for these execs.
We had this discussion on here a few years back - and we agreed that anyone who comes in and suggests outsourcing should be immediately sacked because they are clearly looking for a short term gain over long term profitability and stability.
But I guess if everyone on the exec board of a company is just looking for a quick buck then.....
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