Best Strategic Partnership: DIRECTV and Digital Equipment Corporation (Compaq). In the days just before the launch of DIRECTV in 1992, the founders identified two truths important to their new company’s future. Acting on those realizations, they embraced outsourcing as integral part of their business strategy.
Most Effective Deal: Kellwood Company and EDS. In most business circles, the Kellwood Company is a well-kept secret. Although the company is the fourth largest apparel company in the U.S. and the largest producer of popularly priced clothing, their clothing does not carry the Kellwood label.
Best Niche Deal: Merrill Lynch and AT&T Solutions. Merrill Lynch and AT&T Solutions could give lessons in how to make a niche deal work. Merrill Lynch had specific network needs, so they turned to the vendor dominating that segment of the industry.
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.
As the industry continues to move from cost-based to value-based outsourcing, technology trends that leverage network over premise infrastructure will offer new opportunities in business processes and functions.
The burgeoning demand for increased flexibility and information exchange is driving a marketplace move to networking, according to Rick Roscitt, president and CEO of AT&T Solutions.
Commonwealth Bank of Australia (CBA), the largest bank in Australia, has 6.5 million customers. Until late last year, the bank’s internal technology services department with 1,500 people was the second largest shop in Australia. Now that scene has changed dramatically. CBA and EDS have forged a two-part relationship which includes an outsourcing services contract. The other side of the relationship is a true partnership. CBA bought 35 percent of the EDS business in Australia.
Anthem, Inc., a carrier of health insurance, was in the middle of an outsourcing contract when they decided to conduct a benchmark on price and service levels last spring. The reason for the company’s decision was simple. They suspected that they were paying too much for their current service. That proved to be true.
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.
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.
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.
This relationship was chosen because of its strength and its powerful vision of impacting Rolls Royce’s business beyond its IT systems.
The JP Morgan deal gets the award for Most Important Deal from the Editor’s Choice Awards for a number of reasons…
This relationship was chosen based on the close working relationship between the two companies.
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