Outsourcing Center, Kathleen Goolsby, Senior Writer
A significant trend for outsourcing in 2010 is that business transformation initiatives are on the rise. So are multisourcing environments. This article looks at these and other trends, implications, and recommendations.
Outsourcing Center, Bruce McCracken, Business Writer
Application development costs and speed to market are critical for a startup with a new concept. Because the founders had to prove the concept, they didn’t want to spend a lot of capital. Hiring U.S. developers was not in the budget. A Chinese service provider got the job done at half the cost.
Outsourcing Center, Bruce McCracken, Business Writer
Auteco Kawaski, a larger motorcycle assembler in Latin American, was unable to track the service and warranty records on individual bikes by either its 300 dealers or 350 service shops. A Colombian supplier, PSL, created the application to do just that.
Outsourcing Center, Bruce McCracken, Business Writer
Success threatened Wellington Technologies. The HP maintenance provider signed a big contract, but the scope of the win was beyond the capabilities of its existing parts delivery system. And the fact that its parts delivery agreement had penalties didn’t help. After paying those penalties, the company outsourced to meet its delivery challenges and enhance its capabilities.
Outsourcing Center, Kathleen Goolsby, Senior Writer
Increased business agility is a big driver of the increase in application management outsourcing (AMO), notes Marc Schwarz, Senior Vice President and leader of the Oracle On Demand business. Businesses want to focus more of their resources on developing new innovations that increase revenue and profits. But he states that reducing business risk is the …
Outsourcing Center, Kathleen Goolsby, Senior Writer
Transparent pricing, highly standardized processes, vertical solutions. Companies will select service providers that deliver the best quality and value-add, not just the best price. “Increased adoption of standardized solutions in outcomes-based models will drive outsourcing to become more utility based,” says Don Schulman, General Manager, Finance and Administration at IBM. “And that becomes where the …
Outsourcing Center, Kathleen Goolsby, Senior Writer
Among the various changes that will impact outsourcing over the next five years, Don Schulman, General Manager of Finance and Administration at IBM, says the first will be a focus on outcomes-based pricing models. “Focusing on clients’ end-to-end processes, the discussion moves to outcomes pretty fast when considering the advantage of an outsourcer doing a …
Outsourcing Center, Kathleen Goolsby, Senior Writer
Thanks to the American Recovery and Reinvestment Act (ARRA) (the economic stimulus package for the U.S. economy), healthcare reform, and the Health Information Technology for Economic and Clinical Health Act (HITECH), the next five years will see a dramatic increase in outsourcing in the healthcare industry. But there are significant challenges for decision makers beyond …
Outsourcing Center, Kathleen Goolsby, Senior Writer
Outsourced data security is revolutionizing businesses. “We will see a dramatic change in security becoming a prevalent component of outsourcing contracts over the next five years,” says Jim Motes, Chief Information Security Officer for Dell Perot Systems. As virtualized services in cloud and utility computing technologies become more ubiquitous, they will drive an even deeper …
Outsourcing Center, Kathleen Goolsby, Senior Writer
Technology enables business change, but it doesn’t drive it. Jim Stikeleather, Chief Technology Officer at Dell Perot Systems, says change doesn’t happen unless there is an economic value. And that’s why cloud computing will make such a huge impact on outsourced services. It changes companies’ ability to consume IT. “This will create a very different …
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