The Changing Nature of Outsourcing | Article
Outsourcing has changed since the early days of the industry in the 1970s, when outsourcing relationships were essentially time-sharing arrangements and facilities management.
Outsourcing has changed since the early days of the industry in the 1970s, when outsourcing relationships were essentially time-sharing arrangements and facilities management.
The recent wave of network outsourcing is causing some business people, and not just techies, to turn their attention to a seldom mentioned aspect of outsourcing — network security.
Outsourcing, once considered an arcane business practice, has reached the boardroom and beyond. Today top managers understand the applicability of outsourcing to their companies and recognize its value in myriad businesses. As this powerful tool sweeps across the North American business landscape and continues to expand globally, it is creating unprecedented value. And as the outsourcing phenomenon comes of age, evolving from powerful management discipline into a mature industry, its future looks brighter than ever.
Outsourcing of the network management function is not yet as widespread as Information Technology (IT) outsourcing. However, that situation is changing as networks assume more and more importance in networks.
Aligning Information Technology (IT) and business strategy has been documented as one of the top concerns of CIOs. Network-centric outsourcing can help technology executives reach that goal if they have the proper perspective on control.
When ABB Power Generation Ltd. decided earlier this year to outsource the operation of the client server infrastructure for their total office environment, the Switzerland-based company’s reason was clear. They wanted secure access to resources and skills.
From time to time in InfoServer, we focus on an important development in the outsourcing industry. This month, our discussion centers on a metamorphosis that is taking place. IT outsourcing is moving into the brave new world of network-centric outsourcing, where the emphasis is not on the mainframe or client servers, but on the ability [...]
On average, banks that outsource their information technology (IT) are substantially reducing costs. According to American Banker, banks are averaging savings of 15 to 20 percent in operational costs from outsourcing. First Fidelity Bancorp, which has $29 billion in assets, is a good example of a bank that has achieved considerable savings through outsourcing. The institution reduced their operating expenses by as much as $150 million in 1991, with the bulk of the savings derived from lower labor and equipment costs related to IT. But blindly pursuing outsourcing because it is what the company next door is doing, and doing well, is not necessarily a good decision, says Dr. Detmar Straub of Georgia State University.