CIO Plus

Some companies that have backsourced their IT

Listed below are just some of the companies that have chosen to backsource for various reasons:

ABB Power: Insourced services worth $4.2Bn from Sunguard Recovery Systems because of contract and cost issues.

American Airlines: Brought back infrastucture management from IBM.

Amtrak Express: A perceived loss of control led to services being taken in-house from Parcels UK.

AstraZeneca: Are looking to reduce outsourcing dependency from 70% to 30% and set up a Global In-House Centre in Chennai (GIC) in 2014 with the ultimate aim of saving 50% of IT costs.
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Bank One: Took back $1.4Bn worth of contracts from IBM and AT&T because of contract and cost issues and a perceived lack of control when they merged with JP Morgan.
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Bedfordshire County Council: Brought back in £260m worth of services from Hyder Business Services because of a need for change.
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Cable & Wireless: A perceived loss of control led to £1.8Bn worth of services being brought back in-house from IBM.
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Daimler: Announced their intention to bring all outsourced IT back in house and set up a GIC in India in 2013 to save $200m pa.
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EMEB: Insourced £230m worth of services from Perot Systems.

Eckered: Contract issues caused them to insource $440m worth of IT services from IBM.

Equiniti: Insourced IT services from Accenture and BPO services form Infosys and HCL after establishing a GIC in 2014. 
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Farmers Group: Contract issues and a knowledge mismatch resulted in services worth $150m coming back home.

Gateway: Services returned from ACL worth $400m.

General Motors: Who were 90% outsourced announced their intention to repatriate them all.
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HBOS: The merger of Bank of Scotland and Halifax BS resulted in $1Bn of IT services coming back in-house.

JP Morgan: Took back 4,000 staff and $5Bn worth of services from IBM in 2004 to save money two years after signing the deal.
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Kana: Returned services in-house from IBM after a perceived loss of control.

Littlewoods: A belief of need for change and contract cost issues led Littlewoods to bring back services from Vertex.

London Borough of Hackney: Infrastructure support and Data Centre hosting was brought back in-house.
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LSI Logic Corp: IBM returned services in 1997 because of a perceived loss of control.

McDermott International: Design, implementation and management of IT was insourced form AT&T.

MLC Australia: A perceived loss of control resulted in services being returned form IBM.

Mony: Took back IT services from CSC worth $210m.

New York Presbyterian Hospital: Insourced $228m worth of services from First Consulting Group.

Oxford Health Plans: Contract, cost issues and a perceived loss of control led to the return of services from CSC worth $195m.

Pacific Health Systems: Took back in-house services worth $500m from Keane Inc.

Proctor & Gamble: Reported to be considering insourcing their IT because of a perceived loss of control.

Prudential: Returned services from CapGemini in 2006 worth £55m because of a perceived lack of control.
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QinetiQ: Insourced services worth £300m from Accenture.
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Sainsbury's: Reported saving £440m after returning in-house services worth £2.1Bn from Accenture in 2006 following the appointment of a new CIO.
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Sears: A belief in the need for change and a knowledge mismatch led to the insourcing of services worth $2.8bn in from CSC.

SSE: Insourced services from IBM worth £200m.
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Suncorp Group: Took back services from CSC in 2002 because of a perceived loss of control.

UBS: Following the appointment of a new CIO UBS insourced services from Perot Systems worth $201Bn.

United Airlines: Believed that they needed to cahnge because of a knowledge mismatch and in-sourced services from EDS worth $2.1Bn, which resluted in increased customers and improved satisfaction.

Wates: Insourced IT services worth £24m and increased profitability.
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Xerox: Took back services from EDS worth $3.2Bn.