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A Phoenix construction company wins a big job in Los Angeles. The first stage of the project requires a D10 bulldozer. Instead of hauling the heavy machine from Arizona to California, a costly expense even before gas prices skyrocketed, the contractor typically called a broker to sell the dozer in Phoenix at an auction and buy another one in California. It’s easier to pack your crew and travel to Los Angeles than it is to pack your crew and equipment and travel to Los Angeles, says Tri Nguyen, vice president of technology for EquipmentAuction.com.
Application Service Providers (ASP) have much to offer companies in today’s connected, competitive world, according to Rita Terdiman, vice president and research director at the Gartner Group, a Stanford, Connecticut consulting firm. They level the playing field, allowing small and medium-sized companies to leap frog to Tier 1 applications, she points out. And multinational companies doing business globally benefit from the easy connectivity of the ASP solution.
Executives who know how to fix computer code but also understand the IRS code are the people who run reSOURCE Partner associates (rSP), an ASP supplier in Columbus, Ohio. The two-year-old firm, which specializes in both the technical and the business side of applications, provides complete application hosting, application management and business process outsourcing using PeopleSoft’s Human Resources and Financial applications. (The firm selected PeopleSoft after an extensive one-year search in 1996.).
April 1, 2000 |
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When asked how the cost of outsourcing transactions can be reduced, Dennis McGuire, president of Technology Partners International, says that the most problematic area occurs before the contract is signed. The largest source of costs, he explains, lies within the process of negotiating the contract…
March 1, 2000 |
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Outsourcing changes are usually linked to developments in the computer industry. In the past, mainframe operations have been the dominant way in which a company runs its information technology (IT). So consequently, outsourcing has drifted towards farming out entire computer centers. With more decentralized operations, such as LANs and WANs, the possibilities of selective outsourcing has become reality, opening the door to multiple vendors and the outsourcing of different environments. This leads to the question of whether to choose best-in-class providers or single integrators.
The process of choosing a viable vendor from the thousands on the market can be chaotic. And for companies that aren’t faced with outsourcing issues every day, a lack of knowledge on the protocol for selecting and integrating an outsourcer can lead to problems…
Flexibility in legal outsourcing contracts bears striking similarities to a team of professional athletes under the tutelage of a watchful coach.
March 1, 1999 |
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The outsourcing industry, having matured significantly during the past ten years, faces changes in 1999 that will not only alter the focus of the outsourcing industry itself, but will also transform the companies entering into such transactions.
January 1, 1999 |
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The past decade has seen a move toward outsourcing as a way to decrease operating costs. The outcome has not been a record of unblemished success, but unanticipated results have played a role in reshaping outsourcing, according to Ellen Quinn, vice president of administration, Yankee Energy.
Outsourcers that have the infrastructure and more importantly the expertise within a given process will be able to capitalize on that opportunity.
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