Abstract

The case gives a detailed account of IT outsourcing practice at General Motors (GM), the largest automobile manufacturer in the world. It traces the history of IT outsourcing initiatives at GM and presents the benefits that were gained by the company from its IT outsourcing strategy. The case details how GM was able to use the learning from its initial outsourcing experiences to modify its outsourcing model. It further discusses how the innovative matrix structure of GM’s in-house IT department played an important role in making its outsourcing strategy a success. This case highlights the importance of effective IT and business alignment for a successful IT outsourcing initiative.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyse the suitability and implications of an outsourcing strategy for a company’s IT needs.

Keywords

GM, IT-Business Integration, IT Strategy, Business Process Outsourcing, Matrix Structure, Precision Strategy, Service Level Agreements, Vendor Management, ERP for IT Management, Process Information Officers, Process Improvement