When you’re 17, one of the hardest decisions you have had to make in your young life is where to go to college. Then, you arrive on campus and have to embark on a whole new way of living away from Mom and Dad. There’s no doubt these decisions can be tough for teen-agers. So, five recent college graduates decided to do something to make this trying time easier. Young Shin was just 29 when he and his fellow Wunderkinder launched Embark.com, a San Francesco application service provider…
Cost Reduction & Avoidance
Cost reduction often is the primary push to outsource a non-core area. And when the savings are significant, slashing the costs almost in half, more and more American companies are taking advantage of the lower price, even if the supplier is half way around the world.
BPAmoco is one of the world’s leading providers of energy and petrochemicals. As the third largest integrated oil company in the world, it enjoys considerable reach and scale. BPAmoco recognized that its core skills revolve around the products that it markets to its customers. Its accounting and transaction functions are not part of that core. We can certainly get comfortable with a third-party providing that service, allowing us to focus our attention on those things that we are good at and need to be good at, suggests David Hulf, CFO of BPAmoco Oil Europe. But only an outsourcer of equal stature would be able to supply BPAmoco’s needs.
Here is a superb example of how two organizations took an immense challenge and succeeded. The scope of EDS’s assignment was broad and pervasive: to take over the IT and some BPO functions for the Government of South Australia. The ministers literally outsourced the entire government! The benefits were wide-ranging as well: cost savings, improved services and new job creation. The relationship is noteworthy because of its grand vision and its ability to deliver…
Outsourcing–In existence for more than 175 years, the Bank of Montreal, a large, complex organization with a branch network of approximately 1,000 locations, had determined by the mid 1990s that it needed to reinvent the way it did business. The financial services landscape evolves very quickly, explains Linda Tuck Chapman, director of services in Strategic Sourcing…
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..
Although he sees few mega-deals on the outsourcing horizon for 1999, Robert E. Zahler, a partner in the law firm of Shaw, Pittman, Potts and Trowbridge, does predict a streamlining of outsourcing relationships.
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).
Business Process Outsourcing (BPO) is paving the way for leading companies to compete globally and increase profitability into the new millennium.
On January 1, 1999, eleven member countries of the European Union (EU) will adopt the Euro as their common currency. This move has complex implications for outsourcing in Europe. It will affect existing and new contracts and, more fundamentally, have an impact on the market structure.