This issue of the Outsourcing Journal describes the trend toward performance incentivess in outsourcing. We interviewed customers, suppliers, analysts and a lawyer. All were wildly enthusiastic about the relationships an performance incentives contract created.
Today cybercafes allow the kinder to email home from anywhere. Ryan Byrne formed Globe Drifters in September, 1999, to make it even easier for student travelers to keep in touch…
GoCargo.com is an on-line exchange for ocean freight. The site works like most B2B exchanges; shippers post their ocean freight shipments on the site…
Jeff Kelly, vice president for EDS in the America’s delivery, Information Solutions line of business, says EDS typically competes with Tier 1 suppliers for the nation’s large outsourcing contracts…
The two Brits were lured by the siren call of the constant sunshine. Bahad and his partner started Dataforce Corporation in 1993 as a marketing vehicle for their Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) consultancy…
Julie Giera, a vice president at the Giga Information Group in Cambridge, Massachusetts, believes they will become increasingly popular because ‘they are a great way to manage relationships.’ She predicts the outsourcing world will see a surge of these creative arrangements in the next 18 months…
Providing performance incentivess to encourage the behavior your want is a powerful way to moderate behavior. Parents use it to push for good grades. Puppy owners use it to train Rover to fetch. Now outsourcing customers are writing performance incentivess into their contracts to improve the performance of their suppliers.
Did you ever buy something, then get it home only to realize it’s a lot more complicated than you thought. That’s what happened to Lincoln Life Insurance Company in Hartford, Connecticut. It purchased the administration of insurance policies from Cigna and Aetna. Each company had its own policy administration computer system. Lincoln Life had its own system. Suddenly, there were three computer systems required to do the same job. And none were compatible…
In 1998, Lincoln Financial Group went on a buying spree. The Hartford, Connecticut insurance company purchased the individual life policy portfolio from both Cigna and Aetna. However, the new business opportunity came with a major problem: now the insurer needed 10 different software programs to run its portfolio. Obviously, Lincoln had to consolidate and integrate its policy operations.
In 1993 MCI had a problem. It called Bob Stockard to solve it. Stockard and his wife Maria Massaro were running a successful executive search firm when MCI, a search client, approached them. The long distance carrier was looking for a temporary sales force to launch its new Friends and Family program. And, MCI needed its sales force now…
Question: How do you find the right mix of freedom to get the job done for the supplier and control over the process for the customer? Answer: Performance-based outsourcing contracts.
NASA was the federal agency to put the first man on the moon. Now it is leader in another strange new landscape: performance incentives-based IT outsourcing. The Outsourcing Desktop Initiative for NASA (ODIN) has happily outsourced 45,000 desktops and 40,000 telephones in a 12 year, $13 billion multi-vendor contract…
When the South Florida State Hospital was built in 1957, the town of Pembroke Pines was a community of dirt roads. Today, Pembroke Pines is a flourishing upscale community west of Fort Lauderdale. Similarly, the mental hospital’s needs have changed significantly in the last 40 years…
Intellisource, an IT support company, is used to launching new ideas with NASA. The Vienna, Virginia company, which has been a NASA subcontractor from its inception, was able to win one of the nine master contracts from NASA’s Outsourcing Desktop Initiative for NASA (ODIN) because of its expertise and its heritage with the space agency.
Dr. Han T. M van der Zee doesn’t own a crystal ball. Yet the director of the Nolan Norton Institute in De Meern, the Netherlands conducts research to predict the future. Companies look to the Institute to help them determine what they have to do now to get ready for tomorrow.
Online Communities Become Par For The Course… Nothing can provoke a temper tantrum in an usually well behaved adult faster than a missed putt. When abusive behavior began to pervade an Internet golfing community, a golf Web site turned to an ASP to clean up the act.
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