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International outsourcing embraces several common factors: the creation of value, the introduction of concepts, the portability of technology. Then there are the uncommon: language and culture. We’ve heard it over and over again. The supplier community’s biggest concern is getting and retaining qualified people, said Steven Leakey, EDS’ former director of marketing and business development for Asia/Pacific. But it’s an even bigger and more complex concern for the international outsourcing marketplace.
August 1, 1997 |
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The global marketplace is booming, and companies are responding to the lure of worlds to be conquered. Firms that transact business around the world are striving to reach new and emerging markets domestically and internationally and to operate more efficiently on a global basis. For some of the firms, their efforts to extend their marketing and operational reach beyond their traditional boundaries creates the need for assistance with their infrastructures. Many of them are turning to outsourcing as the bridge to reach their international growth strategies and customer base.
August 1, 1997 |
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Tall oaks from little acorns grow. That old Latin saying applies to the staggering growth taking place in international Information Technology (IT) outsourcing. The growth trends predicted over the next few years in the US and around the world are rooted in a strong and established corporate practice of outsourcing. As this growth continues, COMPASS sees a worldwide need for more effective, corporate outsourcing strategies.
August 1, 1997 |
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The European Theater is primed and ready for growth in Information Technology (IT) outsourcing. Total European IT outsourcing is estimated at around $15 billion in 1997, and with firms fueled by the need to concentrate on their core competencies, that figure is expected to rise to around $27 billion in 2001.
August 1, 1997 |
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International Outsourcing: Diversity is the hallmark of the UMW group. The thriving industrial enterprise, based in Malaysia, stretches from Singapore to the Philippines to Canada, with spots in between, and engages in core businesses ranging from automotive and heavy equipment to material and environmental management. Several years ago, the company saw the need to connect all the dots on their corporate map with an Information Technology (IT) system that enabled them to gather and manage knowledge more effectively.
August 1, 1997 |
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Companies frequently turn to outsourcers to harness the tremendous power of spiraling IT technology and shape it into a tool for standardizing their information functions across business lines and geographic borders. Unfortunately, all too often they then tie the outsourcers’ hands by failing to establish standardization as a top priority within their enterprise.
August 1, 1997 |
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International Outsourcing: Executives at Grupo Nacional Provincial (GNP) know all about the value of research. Statistics and other research information are part of their day-to-day business as the largest insurance company in Mexico. Therefore, when the company was considering outsourcing part of their Information Technology (IT) functions, the first step logically was research.
August 1, 1997 |
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All things are not equal. Never has that truth been more evident than in the challenges facing multinational corporations’ efforts to implement seamless network communication around the globe. The goal of providing and maintaining full capabilities to even the most remote production facility frequently slams into the reality of infrastructure inconsistencies across the company’s global footprint. At that point, many companies turn to outsourcers.
August 1, 1997 |
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A recent Coopers and Lybrand survey of 428 high-growth companies revealed some disquieting news. Over half of the companies surveyed were dissatisfied with the overall results of their outsourcing agreements. Things, they said, just didn’t get better.
Specialization, once primarily the domain of physicians and attorneys, is spilling over into other fields in the ’90s. CPAs specialize. Writers specialize–even some dog groomers specialize in certain breeds. IT is no exception.
If you’re contemplating an IT outsourcing relationship, forget about the 10-year, fixed-price arrangements of the past. Those cash cow deals have been butchered by the pace of technological change.
Ah, the honeymoon stage of a business relationship, that early stage when everyone is enthusiastic, when you envision benefits that will continue to multiply, when you celebrate each small increment of success. You’re focused on the objectives of the agreement. You talk frequently. You nip and tuck and shape exactly the relationship you know you need.
If it’s not broken, don’t fix it. Hyatt Hotel Corporation put a new spin on that old adage in 1996 by ‘fixing’ the company’s well-functioning IT organization before it broke. The result is an outsourcing agreement that continues to deliver Hyatt’s high standards of customer service while providing the resources to plan for the future.
Culture shock. That’s not something most would expect conservative icon Rolls Royce to embrace, but that’s exactly what the company sought in its outsourcing relationship with EDS.
You’re in the final stages of your outsourcing agreement. You and your outsourcer have worked out pricing, processing, staffing. Then up pops the devil in the form of third-party software licenses.
Outsourcers that have the infrastructure and more importantly the expertise within a given process will be able to capitalize on that opportunity.
