Companies are selecting two distinctly different options when they negotiate international outsourcing contracts. Which option is best depends on the history and operating culture of the head office, according to Robert Zahler, an attorney specializing in outsourcing at Shaw Pittman in Washington D.C…
Benoit A. Aubert and Suzanne Rivard, both professors at the Ecole des Haute Etudes Commerciales and fellows at the CIRANO in Montreal, Canada, monitor trends in outsourcing as the co-chairmen of outsourcing mini-track at the Hawaii International Conference on Systems Science. The conference, held every January, attracts the top academic papers on the subject. We are trying to provide a forum for IT outsourcing, says Aubert. HICSS attracts academics and industry leaders…
Cost pressures continue to intensify as the Internet sets off a seismic shift in the global marketplace. Reducing the costs of an outsourcing transaction becomes an increasingly important component of the contract process. How can clients save money?
Since Professor Wendy Currie of Brunel University in London, began researching information technology (IT) outsourcing in the early 1990s, the market has changed quite a bit. At that time the developing vendor market was growing, but still in the adolescent phase. Now it is well on its way to full maturity. According to Currie’s and Leslie Willcocks’ business guide titled New Strategies in IT Outsourcing, the global outsourcing market was £96 billion in 1998, and will reach £151 billion by the year’s end.
International outsourcing involves complexity and risks not found in typical domestic outsourcing. These risks are cultural, political, financial, technological, managerial and legal. Ultimately, these multiple international risks show up in the process of drafting, negotiating and enforcing the contract. Freedom of contract varies according to the governing laws and attacking the legal issues requires initiatives from the beginning.
In 1999, the outsourcing industry will change directions. That’s the view from Compaq Computer Corp.
Whether your crystal ball suggests a bear or a bull market for 1999, the view for business process outsourcing (BPO) is unambiguously rosy. According to Richard Smith, partner, European outsourcing for PricewaterhouseCoopers…
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).
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.
There’s a high rate of dissatisfaction among customers with IT outsourcing agreements, according to recent surveys by Deloitte & Touche, Coopers & Lybrand, and others. However, that dissatisfaction appears to signal the industry’s growing pains rather than its demise. The outsourcing market has continued to grow, enjoying a 15 percent to 20 percent annual growth rate for several years.
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