Joe Szmadzinski is a connoisseur of outsourcing contracts. Szmadzinski has negotiated and lived through 25 outsourcing contracts in the last three years as president of System Advisory Group in Southfield, Michigan, a firm that provides interim CIOs for major corporations like Budget Rent A Car….. (outsourcing)
Prisons are one of the most difficult areas to privatize and do it well and safely, says Adrian Moore, of the Reason Foundation. While the task of taking away an offender’s liberty rightly belongs to the government’s judges and juries, the task of making sure prisoners remain in cells and behave for set periods of time is not something that only a government can do. There is no reason why prisons should not be privatized . . . as long as there is accountability…..(outsourcing)
At first blush, Cornell Companies, Inc. appears to be just one among several private corporations whose enterprises generate revenue by building and operating prisons. Beyond the momentary glance, though, Cornell contrasts sharply with its competitors. Just like the background and professional experience of its Senior Vice President and Chief Operating Officer, Tom Jenkins, Cornell operates in all three segments of the corrections industry…(outsourcing)
It’s rare for a customer to have the opportunity to renegotiate an outsourcing contract. Last year Tom Rideout rewrote two. Rideout, who heads technology delivery for Johns Manville, a building materials company in Denver, Colorado, was delighted with the opportunity to correct some problems with the original contracts..
If you look at most traditional outsourcing contracts, says Ben Trowbridge of Ernst & Young, there are a number of built-in conflicts of interest in how they are priced and how they are structured. Trowbridge, who is responsible for the Services Market within Ernst & Young’s Operate Practice, says that equal sharing is not always possible in a typical outsourcing relationship.
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).
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.
Focusing on ‘What,’ not ‘How’. The contract — along with effective management — also is a key issue in any discussion of common problems. Even more basic is an understanding of what outsourcing is and what it is not.
Negotiating Effective BPO Contracts: As the trend toward business process outsourcing (BPO) grows, companies are faced with a new learning curve. They need to understand the elements of establishing a successful BPO relationship, beginning with the proper contract vehicle, which can play a critical role in fostering the chances for success.
Faced with information services (IS) budgets that have become moving targets, top executives now are asking for more accountability in how those investments are measured.
American firms continue their rapid expansion of service and product outsourcing. Companies signed major new contracts for information outsourcing alone in 1994 worth $11 billion; in 1995, $20 billion; and in 1996, $33 billion, and all signs point to vigorous growth ahead.
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