Peter Hinssen, chairman of consulting firm Porthus in Belgium and a teacher at the London School of Business, gave an invitation-only speech to Canadian CIOs and explained to them that CIOs should scrap enterprise IT departments.
He states that CIOs need to be more than just nerds who manage nerds, which I agree with. However, he almost brags about cutting 5000 IT workers from the payroll at proctor & Gamble and outsourcing their jobs.
From a numbers-only, business bottom line point of view, Hinssen’s ideas this may sound like a solid idea, but what he is missing is the synergies that come from having real employees and not contractors. He advises removing a central IT department and a repository of skill sets to choose from.
I would suggest that Hinssen is a bit too much of a numbers guy and not a people person. HR departments are having trouble recruiting talent and finding solid workers. Any company that doesn’t provide employee loyalty is not going to receive it either and will spend enormous amounts of money recruiting and training new employees and contractors on a continuous basis.
Rather than, to abuse an old cliché, ‘Throw the baby out with the bathwater’, I would suggest a centralized IT management scheme and PMO that distributes IT resources throughout the company but still remains in control and up to speed on projects would be a more efficient model.