[Info-vax] IBM Layoffs

[Kerry Main]

> -----Original Message-----
> From: Info-vax [mailto:info-vax-bounces at info-vax.com] On Behalf Of
> David Froble
> Sent: 27-Jan-15 12:04 AM
> To: info-vax at info-vax.com
> Subject: Re: [New Info-vax] IBM Layoffs
> 
> Kerry Main wrote:
> 
> > Outsourcing has many faces .. one model is based on outsourcer
> > simply taking over mgmt of the existing tech/staff resources at the
> > existing DC.
> 
> But, does the new IT management really understand the required tasks?

All too often - no. Also the backout tasks to get out of deals is often not
even discussed.

> Do they have the same desires as those who's main task is to see the
> company prosper?

Think of bonuses linked to "revenue per employee". If revenue is down,
then reduce employees and bonus is still ok. The impact is for the next 
C level exec to worry about.

> 
> > Whether the business case works or not really depends on what
> > the C level decision maker wants to accomplish i.e. reduce staff
> > costs while Increasing OPEX with a monthly charge may make sense
> > to him.
> 
> Sometimes those C levels you write about are bean counters, not
> someone
> who knows the business.  Need I mention Robert McNamara?
> 

Agree.

> > Since staffing is typically 60+% of most IT budgets, reducing staff
> > costs is the real issue under the covers when C level execs start
> > talking about "moving to the cloud".
> 
> And when they save a few dollars, and the company later on fails?
> 

The impact is for the next C level exec to worry about. When being
hired these days, all too often, C level Execs will spend 5 min's talking
salary, 10 minutes talking bonuses and 20 minutes talking exit pkgs.

What does that tell you about what is driving many businesses today? 

> Every business that actually "makes" things should have a rule.  "No
> bean counters or lawyers in a position to make decisions."  Usually they
> are incompetent to do so.

There is a balance required between business acumen, understanding
market trends, the culture of the company, and its customers.

Unfortunately, to many C levels get caught up in the industry hype &
the next big thing (SOA, Clouds to name a couple) and make huge
investments that later prove to be strategies based on sand.

Watch IBM and HP over the next 12-18 months for evidence of this.

Regards,

Kerry Main
Back to the Future IT Inc.
 .. Learning from the past to plan the future

Kerry dot main at backtothefutureit dot com