Years ago, many organizations had software systems that were ‘nice to have.’ In today’s world, though, we need systems to help us compete in the marketplace more effectively. Software systems now have a major impact on our business and enable us to produce higher revenues, higher income, and higher market capitalization…..
PricewaterhouseCoopers (PwC) and BP Amoco (BPA) have embarked on a significant outsourcing collaboration that has the potential of being a watershed event.
Two current trends driving the growth of business process outsourcing (BPO) are the trend toward outsourcing of packaged software applications and the trend for end-to-end hosting management of those applications. Within BPO’s segment of the outsourcing industry are such critical, non-core functional transactional processes as payroll, payroll tax services, and benefits administration.
Purchasing and supply management affect much more than material and service flow, and current trends cast their role and importance in sharper focus than ever.
It is an apt characterization that may be applied to the steep dilemmas that currently snag the efforts of the US federal government to increasingly implement competitive sourcing and privatization of public sector activities..
During an outsourcing agreement the vendor becomes polluted with what is considered to be very proprietary intellectual property, says Gene Slowinski, director of strategic alliance research at the graduate school of management at Rutgers University. When a vendor works with a customer in an outsourcing relationship, the customer tells the supplier many things that are protected by patent, information protected by trade secrets, and vital company knowledge that is retained by the employees within the corporation. The customer and its new business partner the vendor must discuss these issues or it can be very damaging to both sides.
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.
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.
Flexibility in legal outsourcing contracts bears striking similarities to a team of professional athletes under the tutelage of a watchful coach.
Although information technology did not occupy the place it deserved in party platforms during Australia’s September 1998 election, IT was brought to the public forefront by industry bodies. Australia is currently at a critical juncture of its multi-billion-dollar outsourcing industry, and the general concensus is that reform is needed.