The travel agency industry is extremely large in North America, says John Haville, managing director of Unisys Travel Alliance Services (TAS). The $150 billion industry is used for more than 80 percent of all the airline’s bookings, as a channeled distributor.
One of the largest travel agencies in the United States, First Travelcorp out of Raleigh, N.C., began searching for someone to come in and operate some of its back office activities during the mid-90s.
The market reality today of intense merger and acquisitions activity, can create a significant challenge in outsourcing contract negotiations.
The aftereffects of acquisitions can sometimes be brutal to a corporation. The expansion of markets and increased shareholder value is what drives acquisitions, but what often taxes companies is the reorganization that takes place once the contract has been signed. Jeff Kaplan, director of strategic marketing at International Network Services (INS), is aware of these dangers. Fortunately for his company and their investors, INS has recently made a successful acquisition, but the ill wind of reorganization has reached his offices in Quincy, Mass.
This decade-long acquisition and merger binge by banks has created plenty of business opportunities for outsourcers that have the capabilities to help the banks with reorganization and consolidation of their IT infrastructures.
Bethlehem Steel, headquartered in Bethlehem, NY, stayed ahead of the game. In 1992 the company did something most manufacturing plants in the union-run states of the Northeast might not try. It outsourced its information technology (IT) to EDS to ensure a brighter future for their investors and employees.
In synergism, an admixture–any alien element–can be introduced, and it often increases the effectiveness of one or more of the original properties. When the concept of combining different elements with the strategic purpose of creating something that operates better was applied to the business world in the 1970′s, it became a major force in shaping [...]
Outsourcing Buzz Blog Outsourcing Alert