Outsourcing? Well, sort of, but the
Ford Motor Company's choice to remote-source some of its IT work actually is to the U.P., not a foreign country. (Although maybe if you ask some people…)
Here's how it happened. Ford was studying functions that could be outsourced in 2007, and came up with several IT services that could be done elsewhere. But, when they went looking for an IT location, there were language barriers, high staff turnover, low skill sets, and time zone issues.
Russell Louks is Ford's application technology supervisor and says when he discussed relocating with MTEC SmartZone and
Michigan Technological University officials in Houghton, they suggested Tech computer science students as a low-cost, high-skilled workforce that also provided the benefits of a common language and time zone.
A "move-in ready" facility at MTEC SmartZone that met technology and security needs was a big factor in the decision, and so the partnership was made.
"We looked at a lot of options but ended up choosing MTEC SmartZone because of its proximity to campus. All but two of our employees are students who need to get to and from classes and work quickly," says Louks, himself a Michigan Tech alumni.
Ford decided to move the IT functions to MTEC's Lakeshore Center facility in September 2007, and was in operation two months later.
"All we had to do was set up our networks and workstations. We were ready to go in a very short time," he says.
And it's been a good situation for all, as Ford gets high quality work at a lower cost, MTEC SmartZone gets jobs right here in the Keweenaw, and Tech students get one heck of a real-world IT work experience--that doesn't look too bad on the resume, either.
Writer: Sam EgglestonSource: Russell Louks, Ford Motor Company
Enjoy this story?
Sign up for free solutions-based reporting in your inbox each week.