It is an apt characterization that may be applied to the steep dilemmas that currently snag the efforts of the US federal government to increasingly implement competitive sourcing and privatization of public sector activities..
More and more, companies enter into outsourcing agreements as a strategy to remain competitive. But rapid technological advancements change the competition; hence, an essential element of an outsourcing agreement must be flexibility. G2R, which specializes in providing research and management consulting, assists end users and vendors in constructing effective sourcing agreements.
Industry studies reveal that most customers who become dissatisfied select another provider, rather than return the functions in-house. Stephen Fordham, Senior Director of Employee Care at Convergys Corporation.
At the time it was formed in June of 1997, DuPont’s IT Alliance was the single largest technology management agreement in the information technology industry; but it wasn’t just another outsourcing deal.
Grading the performance levels, strategies, and success of government services outsourcing suppliers, MAXIMUS is out front with straight A’s. The company was selected by Forbes Magazine as one of the ten Best Small Companies in America for 1999..
Although he sees few mega-deals on the outsourcing horizon for 1999, Robert E. Zahler, a partner in the law firm of Shaw, Pittman, Potts and Trowbridge, does predict a streamlining of outsourcing relationships.
As the outsourcing industry heads into 1999, Richard Raysman, an attorney with the New York firm of Brown Raysman Millstein Felder and Steiner LLP, expects to see not only larger transactions, but an expansion of the services being outsourced.
The outsourcing industry, having matured significantly during the past ten years, faces changes in 1999 that will not only alter the focus of the outsourcing industry itself, but will also transform the companies entering into such transactions.
As the outsourcing industry heads into the final year of the century, growth will be driven by a blending of the traditional and newer segments of the industry, according to Donna Crane, vice president, marketing, Systems and Computer Technology Corp. (SCT).
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 Buzz Blog Outsourcing Alert