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GM Synopsis Essay

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One of the issues facing Global Communications is outsourcing. They are looking at moving their technical centers overseas to India are Ireland. When a company looks at outsourcing there are a number of issues that arise. Some of these are contact negotiations, management of supplier companies, and standardization of processes. General Motors is a large company who has also had to face these issues and by benchmarking their solutions Global Communications can take away some valuable lessons. When General Motors first started outsourcing it was to a company it was with a former subsidiary, which had become an independent entity. Over the years since their first venture into outsourcing they ended up working with multiple supplier companies all over the world with many more subcontracted companies as well to provide IT solutions. What this led to is plethora of different contracts, relationships, and processes. Instead of focusing on its core business, General Motors now had to spend an ever increasing amount of time managing its outsourcing. In essence the benefits from outsourcing became less and less as they were offset by the costs of managing outsourcing. If Global Communications is not careful this same fate could befall it. General Motors solved these problems by implementing standardization. By having multiple contracts time had to be spent on negotiating and renegotiating each one of those contracts. By standardizing what General Motors was seeing and what the terms of the contract would be there was still room for some negotiation and customization, but less time had to be spent hashing out an entirely new contract each time one expired.
By having multiple suppliers of IT solutions General Motors also had to spend time and money managing the relationships with these suppliers and their subcontracted companies. By standardizing the interface used for communication with suppliers and requiring the suppliers to deal with the subcontracted companies, General...

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