Oreos,Philadelphia Cheese, Maxwell House Coffee

Oreos,Philadelphia Cheese, Maxwell House Coffee are the great brands from Kraft Foods the world’s second largest food company  (Nestle is the largest). Kraft just announced a 1.7B$ outsourcing  deal for IT management including hardware,software etc. to EDS. EDS in turn will partner with companies like Dell,Microsoft,CISCO,Dell. Kraft says that they’ll have a mix of in-house and outsourced activity to keep IT at Kraft at world class levels. Indeed IT systems are an enabler and you need contractors and providers who are very very specialized and can come together and offer world class solutions on a continuous basis. Kraft’s business is continually figuring out the very competitive food markets in 150 countries with 34 billion $ in sales. It cannot keep hordes of folks in  house who’ll just look after the network and will not be very efficient in it anyway. As I mentioned at an earlier post IT seems to be going the way of electricity industry where electricity companies took over from in house generators of the industrial world. From the days of mainframe computers and major IT personnel (1980’s)we saw the decline of the in-company "IT raj" with the advent of PC’s in the early nineties. IT departments are now morphing to a lean strategic thinkers with everybody else specializing with different providers. For Kraft 670 folks will join EDS. In-company IT leaders will have to become true leaders in anticipating and delivering state of the art solutions from OSHA compliance in New Jersey to distributor stocks in Shanghai depot instantly to concerned managers….

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