Chad Dickerson: June 09, 2004 Archives: Chad quotes Jerry Gregoire, the former CIO of Dell and Pepsico.
There are three immutable and unpleasant truths about information technology staffing and retention that make outsourcing the dodge of choice for the incompetent and lazy:
1. Turnover is expensive;
2. Retention rate is the most accurate indicator of leadership quality; and
3. Recruiting is the hardest job an IT manager has.
Well, yeah, this is pretty close to what I remember, though the use of “incompetent and lazy” seems a little harsh: if the CEO has been reading too many “IT doesn’t matter” articles, the IT director can find himself trying to “do more with less” with less than usual.
I think all three of those points are worth nailing taping on the machine room door (they’re usually glass doors, aren’t they?).
This is part of my longtime beef over resume databases and keyword searches over actual reading. I think competent IT managers read resumes for context and comprehension of an applicant’s position on a career arc and how that fits into the open position. And to some degree, I believe(d) in involving the rest of the team in reviewing and culling resumes, just as you would include them in the interview process (don’t all IT managers do this?).
Chad’s point is that outsourcing is a tool, not a magic bullet: I agree. I think you could make the case that some functions of IT are commodities (payroll, to quote his example). If it’s not a core competency for your business or part of your competitive advantage, it should be considered fair game to outsource.
It would be instructive to learn how many organizations think recruiting is a core function or a commodity.