PepsiCo is learning that same lessons that Boeing is learning with outsourcing the 737 MAX Software build. You simply can’t apply assembly line mentality to IT managed services in this day and age. When misused, the outsourcing concept has two fundamental flaws. First, any activity that is not consistent and predictable will have frequent decision points. Productive and cost efficient decisions are dependent on the expertise and experience of the decision makers to best understand the variables involved. Second, pride of ownership is the core quality driver with both project and managed services. The application or process in question becomes a reflection of the integrity of those responsible for its existence and reputation. As PepsiCo releases the expertise, experience and true application “owners”, IT services becomes exposed to a greater risk with disengaged offshore resources. Rapid turnover of these resources and a strict concern for service metrics shifts the focus from quality to quantity. Over time the application stability and integrity will fracture and dissolve. Any costs saved with initial outsourcing will be lost 10 fold rebuilding and sustaining applications that are highly unstable. Application instability is actually vendor self serving, it serves the vendor’s primary objective to generate revenue. More failure requires more resources, this drives higher vendor engagement costs. PepsiCo IT employees focus on cost reduction, vendors are best served through services cost growth. PepsiCo is experiencing the symptoms all ready. The problem will essentially continue to become more severe as more IT staff are released. This is not really unfounded criticism, it is reality.
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Yup. Migration now is the new way to.halt any work going out of the door. Impossible situation which will become a quigmaire.
Operations cluster leads are useless
There is absolutely no direction anymore and entire it is on the verge of breakdown
The only way they can now bring any stability to the systems is by making it very difficult for any team to migrate a change to production.. The clowns in IT Ops leadership are pathetic losers that have no idea of what the work is but want to be roadblocks in any system changes.
Yes it is. Well pointed there are no key resources left. Outsourced services ha e been atrocious. No sympathy for the leadership. The myth of Indian outsourcing model has burst it bubble. Only 1 out of 100 is good. The rest are pure garbage who cannot or have no interest except clock the time.