Research & Insight

Author archives

From Future Shock to FutureSourcing

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Compaq buyers want their outsourcing vendors to introduce innovation and add value to their outsourcing contracts, observes Thomas Simmons, vice president, eBusiness Management Services for Compaq Global Services in Stow, Massachusetts. Buyers want their vendors to be part of managing today’s complexity. They want us to think of different ways of doing business that they would never have thought of, he says.

Outsourcing Now Has Ebusiness Component

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

When buyers decide to outsource today, you can bet ebusiness considerations are part of the contract. Paul Cofoni, president of the technology management group at Computer Science Corporation (CSC), says he rarely sees an outsourcing proposal that doesn’t have a substantial ecommerce component. Companies want to create a business-to-business (B2B) exchange, use ebusiness to enhance their supply chain management, or simply make it easier for their clients to have access to them…

IT Vendor as Change Agent

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Buyers are interested in transformation, says Joe Ragusa, vice president, Transformational Outsourcing for IBM Global Services, based in Somers, New York. They see outsourcing vendors as change agents who can provide the skills, processes and technology they need to enter the brave new economy. IT is enabling, adds Ragusa. The Web has created some strange bedfellows. Heated competitors are now working together in business-to-business (B2B) exchanges…

Big Companies Embrace Multi-Process BPO

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

The trend to outsource non-core business processes is ‘irreversible,’ says John Barnsley, global leader for Business Process Outsourcing for PricewaterhouseCoopers (PwC), and is steadily moving to include multiple activities. Barnsley attributes an overall increase in acceptance of BPO as an important strategic tool to the rapid transformation in technology. Constant change, accelerated by the Internet, has altered companies’ risk equations.

Equity Creates ‘Sticky’ Outsourcing Deals

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Information technology is moving from legacy information into a commodity. This inexorable shift is altering the nature of the relationship between buyer and supplier. That has been a pretty big change in the market last year, says Bob Chaffin, contract manager of IS for General Motors Corp. in Detroit, Michigan. Today, vendors must differentiate themselves in the marketplace and create an important distinction between their value added abilities and the commodity they are selling…

Double Digit Growth for BPO

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

There was a huge up tick in business process outsourcing (BPO) in 2000, says Julie Giera, vice president at Giga, a Cambridge, Massachusetts-based research and advisory firm specializing in the technology industry. She attributes BPO’s double digit growth to the popularity of Web-enabled offerings. BPO soared because companies are seeing the benefits of using an application service provider (ASP). Giera defines the ASP model as application rental over the Web.

ASPs Ready for a Consolidation

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Application service providers (ASP) arrived en masse on the outsourcing scene last year and then proceeded to solidify their place in the marketplace. That was the major happening in the outsourcing world in 2000, according to Dean Davison, vice president at Meta Group, an IT advisory and research firm in Stanford, Connecticut…

2001: An Ecommerce Odyssey

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

This year will be the year of ecommerce outsourcing. But the seeds were sown last year, according to Richard Raysman, a partner at Brown Raysman Millstein Felder & Steiner LLP, a law firm in New York City specializing in outsourcing. Last year startups popped up and new ecommerce companies gained market share. Raysman mentions i2, Commerce One and Ariba as three relative newcomers that last year proved they could be enormously successful in the ecommerce arena…

Time to Renegotiate

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

From 1992 to 1994, many major corporations signed 10-year outsourcing contracts. The end of the tunnel is in sight, but now, the world is much different with the rise of the Internet. Robert Zahler, a partner with Shaw Pittman in Washington, D.C., says many of these buyers are beginning to gear up and decide what to do in this new business environment. They are wrestling with the choice of renegotiating with their current suppliers or putting the contract out for a competitive bid…

Outsourcing’s New Risks

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Academic: Professor James Brian Quinn Outsourcing’s New Risks By Beth Ellyn Rosenthal Today, the greatest risk in outsourcing is to not outsource. So says James Brian Quinn, William and Josephine Buchanan Professor of Management emeritus at Tuck School of Business at Dartmouth in Hanover, New Hampshire. Without outsourcing, companies can’t keep up, observes Quinn. The second biggest risk today is to keep innovation in-house, continues the professor. He calls the idea of assigning all corporate innovation in-house a macho shibboleth. Today, the most successful companies use outsourcing for innovation. He cites Dell Computer and Cisco Systems as leaders in their fields who rely on their suppliers to do the development work.

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