Retail technology giant CDK Global is pitching its massive outsourcing plan as a way to free up resources to boost efficiency and innovation, but how the pending changes will affect its interaction with customers remains an open question.
"It's very concerning. CDK as it stands right now doesn't have a great reputation around customer support," said Matthew Gillrie, CEO of the Gillrie Institute in Lehi, Utah, an automotive software consulting group that works exclusively with dealers. "I can't predict the future, but if I was a CDK customer, it's something I would be nervous about."
Gillrie acknowledged the move could end up being beneficial to dealers if it works as CDK is promising. But he said dealer customers he's talked with about it so far are worried they will struggle to get enough CDK support under an outsourcing scenario, particularly during the transition.