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This winning relationship broke our awards scoring records and is undoubtedly one of the world’s most outstanding examples of outsourcing at its best. Owens & Minor outsourced its IT to Perot Systems, and O&M now commands the leading position in its marketplace. But that’s not all. The level of openness and honesty between these two companies is rare in outsourcing. So is their risk-reward structure — and the outcomes they’ve achieved together.
What makes an outsourcing relationship work? A perfectly executed contract is NOT the answer. An outsourcing arrangement is a long-term relationship whose expectationss and attitudes must be realistic. Here’s how to do it right.
If you’re a patient in the emergency room, you definitely want that hospital or trauma center to have all the necessary supplies on hand — from IVs and blood plasma to bandages and syringes. But the hospital can’t keep everything on hand; it’s in the patient care business, not inventory warehousing. So the doctors and nurses rely on medical distributors to be sure they have what’s needed — or can deliver it in a couple of hours for an emergency. Many of them depend on Owens & Minor, Inc. (O&M) and, in outsourcing their supplies process to O&M, they enjoy the added advantage of reduced costs.
October 1, 2001 |
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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.
February 1, 1998 |
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Outsourcing in the traditional sense a way for companies to save money is changing. The clients I talk with now view outsourcing, or some form of it, as a viable option to not only saving money, but to actually help them improve their competitiveness.
