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Saturday, October 01, 2005
Scobeleizer points to an interesting post by Triston Yates on an important theme - service providers forcing more and more customer spend. Tristan Yates writes about his first hand experience as to how US federal defense contractors growth helps big US headquartered service providers make tonnes of dollars - not deserved in this instance. The mega defense contractor referred in here - hired IBM for rolling out a knowledge management project. Tristan writes that IBM consultants showed jazzy & well structured presentations and forced good telecoms promising the best in design and development of the KM portal - their initial consultants deputed worked hard to make the vendor selection process ineffective and veered the choice only towards IBM suite of products. He adds that subsequently IBM components were replacing many of the other vendors' components in the planned architecture. The high funda sale meant that the local IT team got jittery in involving in the implementation – that meant more merry for IBM – it recruited local consultants recruited from online job sites and sold them to the defense contractor at 300 % plus margins and they were blowing quarter million dollars a week . As against getting IBM experts on the job, the company got a bunch of java programmers in return. IBM stayed for more than seven months,at a burn rate of quarter million dollars a week. Tom highlights that besides the services burden, - there were the licensing and support fees for other IBM components. IBM, which had promoted itself to lead vendor and integrator, had overpromised, overcharged, and underdelivered, charges Tristan. The end result was an overly complex enterprise portal with a few off-the-shelf portlets and a few integrated applications. Many application integration efforts had to be abandoned. It’s unlikely that those apps will ever be in the portal, and the jury is still out on whether the portal will be a success. None of those slick knowledge management presentations seen at the beginning of the project bore any resemblance to the outcome, and that original consultant was nowhere to be found. As IBM is seen as the vendor with the strongest capabilities, at least on paper, they were seen by the execs as the lowest risk choice – helping IBM to sell its servies, software & hardware. His contention is that these are commoditised product/offerings and do not deserve very high prices.
Category :IT Service Providers |
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