We’re paying increasing attention to non-IT or business process outsourcing (BPO) services over the coming year. The growth of BPO is an important emerging industry phenomenon that is driving tremendous value into the buyers that choose it. The British Petroleum/PricewaterhouseCoopers relationship offers a highly successful example of this phenomenon.
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).
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.
Mark Richards, manager network operations, for TransAlta, an investor-owned Canadian electrical utility company, views problems in outsourcing from a slightly different perspective than many others in the marketplace.
When Don Borgschulte, managing director of information technology and services, New Century Energies, arrived on the job in November 1996, his mission was clear. He had been hired to ‘fix’ his company’s badly faltering outsourcing relationship with IBM Global Services.
I live in a state of permanent dissatisfaction. I always believe there must be someone doing something better than we are. That statement by Colin Goodall, CFO for British Petroleum (BP) affiliate Sidanco and formerly CFO for BP/Europe, may explain his role as a pioneer of key business process outsourcing deals.
Most Improved Relationship: TransAlta and Digital Equipment Corporation. In 1995, TransAlta, a privately owned Canadian electrical utility company, and Digital Equipment Corporation were involved in an outsourcing relationship that was headed south in a hurry.
Outsourcing: The Big Picture. The outlook for pure outsourced big deals will decrease in the coming year, according to Jim Champy, chairman of outsourcing at Perot Systems.
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