What is the benefit of image processing outsourcing

That's why IT outsourcing is back in vogue

It was a little over a handful years ago that the signals in the automotive industry were clearly pointing to insourcing. At the US manufacturer General Motors, then CIO Randall Mott turned the wheel around 180 degrees in 2013 and announced that he would bring outsourced IT scopes back into the company. He wanted to hire 10,000 IT specialists for the job - an order of magnitude that surprised GM management and industry analysts alike. In Germany, Daimler jumped on the insourcing bandwagon. By the end of 2016, most of the externally outsourced IT services should be operated independently again. With the “Save 4 Growth” efficiency and growth program, the Stuttgart-based company wanted to reduce its running costs and release funds of around 150 million euros for investments.

While GM is sticking to the course it has taken and is currently looking for 3,000 additional employees for its Information Technology Group, Daimler can no longer afford many thousands of employees in the corporate IT department. The cost pressure that has built up in the last two years is immense. The large number of profit warnings under CEO Ola Källenius are likely to be unique in German industrial history. The portfolio is frayed and everyone knows that Daimler has to part with models and employees alike, including in corporate IT.

900 jobs could be lost in Germany

In June 2020, figures leaked for the first time: A letter from the Daimler general works council indicated that up to 2,000 jobs - 900 of them in Germany - are to be cut. A measure the benefits of which the works council described as "questionable". Nevertheless, it will happen this way: At the beginning of January, Daimler announced a strategic partnership with the Indian service provider Infosys, which is to take over the operation of the IT infrastructure to a large extent: Service desk, workplace support, data centers, networks and SAP - Daimler throws ballast off wherever possible.

CIO Jan Brecht does not want the project, to which the antitrust authorities still have to approve, to be understood in principle as a classic outsourcing measure. In relation to automotiveIT he speaks of a "strategic further development". The focus would not be on the cost aspect, but on a coordinated triad of software engineering, technological innovations and a qualitative transformation. Sounds good, but a completely different message gets through to the workforce. The linguistic smoke candles that were lit when the strategic partnership was announced are understood as embellishing the actual message: The car manufacturer is getting rid of numerous employees in one fell swoop in order to save costs. “For years you have missed creating a framework in order to be able to cope with the challenges. The step is more resignation than innovation ", one employee writes on the Mercedes-Benz Passion blog, frustrating himself.