The McKinsey Quarterly

close Visitor Edition

McKinsey Quarterly is the business journal of McKinsey & Company.

Upgrade to Premium Membership to read this article

  • Recommendations
  • Text Size
  • Print
  • Download PDF
  • Link to This

Building a global IT organization: An interview with DPWN's managing director for ITPremium

Stephen McGuckin explains how the company consolidated its IT operations and developed a unique model for outsourcing and offshoring.

Business Technology, Strategy article, IT organization

In This Article

Few companies have as much on-the-ground familiarity with remote locations around the globe as Deutsche Post World Net, the corporate parent of Deutsche Post and DHL, a logistics and parcel delivery business. So perhaps it was natural that DPWN would emerge as a leader in the creation of a globally connected IT-development and operations model that has consolidated many of the company's once-fragmented application-development and data-processing locations into three supercenters, in Cyberjaya, Malaysia; Prague; and Scottsdale, Arizona, in the United States. Along with some outsourced help in India, these facilities keep DPWN's IT operations and development running around the clock. They are complemented by another application-development center, in Bonn, Germany.

Getting to such a high degree of consolidation wasn't easy—or fully planned. DPWN's managing director for IT services, Stephen McGuckin, who over the past decade has held a series of senior IT positions at DHL and its parent, didn't set out to create a 24-hour IT-development and operations program when he began consolidating the company's Asian IT centers, back in 1997. His goal then was to reduce costs and to improve the productivity of a host of IT-development locations for specific countries. After a thorough study of the possibilities, he...

Premium Membership

Already a Quarterly member? Log in now.
Are you a Firm member or alumnus?

Premium Membership benefits:

  • Access to the entire Quarterly archive
  • Subscription to the collector’s edition print journal
  • Downloadable PDFs of all articles for offline use
  • Premium Membership FAQs 

Start by filling in this form

  • Membership Information
  • Shipping, Billing, & Payment
  • Review & Complete

Country & Membership Term

Shipping & Handling covers all charges for your membership term.

You may pay with Visa, MasterCard, Discover, or American Express.

Member Information

View our privacy policy.

We will not share your e-mail.
See details.

Newsletter Sign-up

View sample.

* Required

New In:
Embed E-mail