Sunday, January 23, 2011

Toyota pays for IBM's I.T. incompetence and fraud

Toyota Australia, which is based in Melbourne is one of Australia's largest car manufacturers.

A large portion of their production is exported to the Middle East, and one less known fact to the public is that Toyota also survives on government subsidies.

In a 'Money for Mates ' deal Toyota outsources its Information Technology to IBM (Global Services Australia), in an attempt to justify cutting costs, where in reality is costs Toyota more, as well as one other important factor is that the IT 'responsibility' rests within IBM.

IBM in turn also 'outsources' its labour to cheap offshore I.T sweat shops.

When IBM goes onsite to Toyota, the IT contractor must then learn the infrastructure of Toyota's Local and Wide area Network, together with the application suite and server set up. This entire process may take up to 3 months for anyone to be entirely familiar with the company's backbone.

What IBM then does is take that IT contractor away from Toyota, and puts them on another project, for example Lend Lease, and replaces them with a newbie, who has to learn the entire process again.
This is done at great expense to the customer, i.e. Toyota.

IBM charges between $120 - $200 per hour to Toyota.

When questioned, Toyota is aware of this practice of wasted resources but NOTHING is done about this.

IBM also fraudulently charges time for services that have NOT been carried out in an internal account management system called CLAIM.

Codes have been made up that do NOT exist and the labour carried out is fraudulently billed to Toyota.

The end result is higher operating costs for Toyota, and consequently higher priced cars to the general public.

The entire outsourcing procedure practised by IBM from Agency to the end customer paying, is a fraudulent one, which has been cross referenced by one of Australia's largest law firms.

The fraud within this business is estimated to be worth TENS of MILLIONS of DOLLARS per year.

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