Does Medtronic repeat Boeing’s mistake by ignoring IT quality?

Boeing 737 had serious quality issue due to software bugs and short sighted IT outsourcing to India.

Medtronic has been cutting senior IT manager and technical positions and outsourcing to India. Some of these IT knowledge takes years to built, and some are simply tribal knowledge buried deep. These are not easily outsourced.

While on paper, it shows 70% savings, in reality it may cost double or triple. In the worst case, when a patient product fails due to poorly maintained IT system knowledge or incompetence, it could cost 10 folds or more.Medtronic stocks could nosedive like Boeing.

Medtronic IT had layoffs every 6 mo for last five years. All senior permanent IT positions were cut, these were replace by contractors and overseas Indian resources. Talented laid off IT folks were immediately picked up by competitors, this has caused business disruption, new IT management had no clue what is going on with the IT systems. Because these new IT senior management folks will leave in a couple years anyway. These knowledge takes years , if not decades, to build.

The end result will be a huge loss for all shareholders. Shareholders need to demand answers.

When a patient product fails due to software issues like Boeing 737 software failure, the stock will nose dive. The writing is on the wall.

It is so sad that such an iconic company ran by so many short sighted , incompetent , unqualified IT new senior management.

Maybe Medtronic will be bought by Boston Scientific, they are heavily recruit laid off Medtronic IT senior talent.

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7 replies (most recent on top)

I can't wait for the documentary on the downfall of the great Medtronic on Netflix just like Boeing.

This company has never had respect for good software. The world changed and mdt didn't.
Adding process and signed documents is not a replacement for the poor design and quality deficits. It just increases cost thus driving out sourcing appeal from a management perspective.

I swear we are stripping a page of every big company that failed miserably; IBM's shrink to Greatness. GE's financial engineering to "prosperity". And now, Boeing's IT gutting.

It’s not just IT that’s losing institutional knowledge. Product development is also hollowed out with most work being done in India or Eastern Europe by contractors. It’s a shame we still try to sell the products as our own. Outsourcing to India is only going to get worse. If you still have a job it will be managing Indian contractors and not serious engineering which is what most of us went to school for.

@lgi+1pkZVyMn Is correct. The big shareholders and the leaders will be long gone before the issue arises. The only people who will be hurt by this are us workers and the patients.

What are something we can do the prevent this?

Medtronic IT staffing is too fat & bloated over the years and it’s getting trimmed to match Industry peers.

You're assuming that senior leadership actually cares. They don't. The short-term 70% savings in cost is all this "leadership" group cares about since it will affect their bonuses. They'll be long gone on to their next grift by the time this issue rears its ugly head.

Earl must be rolling in his grave at how Geoff and Karen have destroyed this once great company.

Thread regarding Medtronic Inc. layoffs

Does Medtronic repeat Boeing’s mistake by ignoring IT quality?

7 replies (most recent on top)

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