An Outsourcing Evolution — from Transactional to Relational | Article
Tomorrow’s clients are looking for ways to gain competitive advantage, to increase efficiency, to transform their workforce, and to reach new levels of performance.
Tomorrow’s clients are looking for ways to gain competitive advantage, to increase efficiency, to transform their workforce, and to reach new levels of performance.
The move toward selective outsourcing has created a marketplace where fewer big outsourcing deals will be transacted and more niche vendors will team together to deliver the services they do best to specific customers.
Partnership: More Than a Fancy Phrase. One of the most telling changes in future outsourcing will be the reshaping of relationships as companies continue to move away from cost reduction as the single key driver.
Outsourcing: The Big Picture. The outlook for pure outsourced big deals will decrease in the coming year, according to Jim Champy, chairman of outsourcing at Perot Systems.
As the industry continues to move from cost-based to value-based outsourcing, technology trends that leverage network over premise infrastructure will offer new opportunities in business processes and functions.
Business process outsourcing now accounts for 30 percent of Affiliated Computer Service’s (ACS) more than $1.1 billion consolidated revenues. Jeff Rich, president and chief operating officer, said that figure is just one indication of a healthy industry.
Outsourcing is exploding, with new vendors scurrying onto an increasingly competitive landscape, and the ‘hot stuff’ offerings of yesterday are becoming standardized fare today.
By the year 2002, over 50 percent of everything that is spent externally on IT services will be expended around e-business activities. That’s part of the e-business explosion predicted by Doug Elix, general manager for IBM Global Services.
The proliferation of outsourcing is just phenomenal across types of activities, across industries and at every level of the organization.
Outsourcing as a management tool will continue to be actively employed. Today, if a manager doesn’t look at all the ways of obtaining resources to do the best job for the company, he’s not doing his job right.
The burgeoning demand for increased flexibility and information exchange is driving a marketplace move to networking, according to Rick Roscitt, president and CEO of AT&T Solutions.