Nissan & IBM outsourcing agreement

Introduction

In the year preceding the millennium, Nissan was in a serious financial crisis. The debt amounted to nearly $ 22 billion in 1999. The company is too self-satisfied and has been successful [2].

Have you considered Nissan's decision to outsource IT infrastructure to IBM in 1999? At the end of the 1990s, Nissan was a very confused carmaker. The company's senior executives are known for their conservative business prospects and the "old boy network" mentality. Profit dropped dramatically and eventually forced the company to $ 22 billion in debt. There were no signs indicating a change in the market that would stimulate profits growth. The sale of vehicles has become necessary.

At the end of the 1990's, mergers were the flavors in the car factory. Nissan drivers turned to Daimler Chrysler and Ford to discuss a possible merger, but none of them were interested (19459009). There was only one alternative left to reestablish and reduce unnecessary costs. This was the decisive point for a decision to outsource business processes

This article seeks to answer the question "whether the cost of implementing a in-house solution exceeds the benefits or the outsourcing of business processes (BPOs) do you have more meaning? "We looked at the Nissan automotive manufacturer's example when, by the end of 1999, they decided to outsource their entire IT departments to IBM to answer our question.

Nissan – Brief History and BPO Decisions [19659002] I. Boom Years

Nissan was established in Japan in 1933 as a heavy industry manufacturer. After World War II, they turned their attention to car makers. In the 1950s, the introduction of the Datsun brand sedans and small pick-up trucks finally had an impact on the global market. The company finally opened the full time in the United States in September 1960.

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