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Ive been on another IBM run project that started off very similarly for a large energy company. A few thoughts about this. 1) IBM pulled the same types of stun
by S_A_P 9y ago
Ive been on another IBM run project that started off very similarly for a large energy company. A few thoughts about this.
1) IBM pulled the same types of stunts on this project and also failed spectacularly. Its not in the news though, as private companies are reluctant to admit failure.
2) IBM and other big consulting companies pour large amounts of revenue and time into relationship management and networking. This keeps the "nobody ever got fired for hiring consulting shop x" fallacy alive and kicking.
3) There is never a large implementation that is "out of the box and turn key" If a consulting shop tells you this is possible without great sacrifice and compromise to business process, you should run the other direction.
4) IBM and other big consulting shops regularly oversell their specialty domain knowledge, and often end up farming it out to independent vendor/domain experts after they realize they're in over their head.
5) While I think IBM is a shell of its former self, their behavior here is big consulting industry standard.
6) Most private companies know that a project will largely come in way over budget, and often don't care as long as they can afford it. The overages are usually written off and as long as the operational risk is shifted away from the business then people are usually happy.
As an independent consultant, Im obviously biased, but my opinion comes from experience working along side with Deloitte, IBM, PWC, and some other big consulting shops. I am usually one of a few niche independent contractors that are brought in to handle specialty items.
So why does this keep happening?
Most enterprises/governments do not want to place their faith in boutique consulting shops or independent consultants as this seems too risky even if they would likely be able to implement for half the money in half the time. The arbitrage for big consulting shops comes from this. Most big consulting companies are going to put 1 or 2 senior and expensive(to their own payroll) people on the project and leave the grunt work to cheaper junior onsite or offshore resources. That work is still billed at 150+ per hour and the senior folks 300+ per hour.
Payroll isnt "hard" per se, its just hard to model into a single comprehensive process. Complicating this is the fact that laws and taxes vary by employee type and location. Internal business rules vary everywhere, and even though best practices exist, there is always differences from one place to another. Finally, people get really pissed when their money aint right...
Ive noticed, anecdotally, that IBM in particular has had issues with big projects and variances. I chalk that up to being the relative newbie in the big consulting world, and they're likely underbidding to get a foothold.