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Circuit City's IT odyssey

June 13, 2007 — 8:01pm ET
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Circuit City CIO Bill McCorey detailed how he decided to outsource his IT operations to IBM in an effort to cut costs and to allow internal staff to focus on better supporting workers in the company's retail stores during his keynote address at the ERIeXchange retail show. The consumer electronics retailer is still in the process of transitioning its IT operation to IBM under the $775 million outsourcing deal that is expected cut IT costs by 15 percent over seven years. He decided to outsource the company's data center because it was the IT unit's biggest and most expendable commodity. While the company had managed and monitored its data center adequately, he concluded that IBM had the core expertise to do a better job at a lower overall cost. Circuit City executives approved the plan in October. Some 50 of the company's IT workers then moved to IBM. "I tried to outsource myself, but IBM didn't want me," McCorey said.

For more:
- read this article from ComputerWorld

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Comments

By Robert | Posted 10:52am | June 14, 2007

Great idea. Another US IT manager not looking at what they are buying. IBM has just let go 500 High level PM's IBM's Expertise sort of speak. So now Circuit City can see what it is like transitioning and then having to scramble to take back control after a disaster. Why don’t CTO's think and research before they buy. I am a Sr recruiter for Fortune 50 companies and I have seen this before. Clients buying packages because of strong arm sales, just to find out that the support is sub standard at best. I knew about this transition when the negotiations started and have spoken to some top people and IBM will NOT be able to even maintain Circuit City's current standard no less improve on it. Another billion dollars down the drain.

By Anonymous | Posted 10:39pm | May 18, 2008

Bill did not outsource himself to IBM, he simply sold everyone else out. Now he has accepted an employment offer from....IBM. Must have been a "gentleman's agreement" that if Bill signed away Circuit City's future, he would be richly rewarded a year later by IBM.

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