Creating one global IT department and architecture is a focus for many companies. Under CIO Randy Mott, Dell has added to its core strategies a "build anywhere, not everywhere" application-development philosophy. Dell's goal is that, once an application is written and stabilized in the test-pilot country, it will be deployed within six months in every country where Dell does business.
Davidson considers measuring productivity critical for global IT management. Manpower records how IT people spend their time, from developing applications to taking vacations. That lets IT leaders decide where around the world teams are most effective and where they need improvement. It also provides insight into what functions can be performed in low-wage countries. In assessing the real cost of outsourcing, Davidson warns that not having a true understanding of internal teams' productivity can prompt a manager to confuse low offshore wages with lower total costs. Without the data, "you'll do a qualitative look and say, 'Well, it looks like it might be a bit financially beneficial to go offshore,'" he says.
Manpower employs about 150 developers worldwide working on new projects and contracts for about 10 to 12 programmers in India. The company will probably begin using more contractors, since Davidson believes 15% to 20% of IT staff should be contingent, given the up-and-down project nature of the work.
Another part of Manpower's global strategy is to consolidate systems. Before Davidson joined Manpower as global CIO, all IT was local. That meant Manpower wasn't leveraging its buying power, for one thing. Just this month, Manpower consolidated all its wide area networking services--which more than 25 companies had provided--with BT Global Services in a five-year, $73 million deal covering 3,200 offices in 63 countries. That will save about $10 million a year, Davidson says.
Davidson knows globalization tests IT employees' ability to keep up with change. Consolidating on WebSphere integration tools, for example, forced employees who had been using Microsoft's BizTalk to learn new skills. "Frankly, there were some upset people," he admits.
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