Outsourcing Center, Kathleen Goolsby, Senior Writer
Traditionally, outsourcing has been IT oriented. Today, however, outsourcing is taking three different paths. I see outsourcing falling into three distinct categories: the traditional IT suppliers,† the application service providers (ASP), and the business process outsourcing (BPO) suppliers. Different currents are buffeting each sector. Historically, IBM, EDS and CSCformed the top tier of the IT …
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…
Outsourcing Center, Kathleen Goolsby, Senior Writer
New vendors around every corner. Mega deals. Dead dotcoms. And even some fallout from Y2K. They littered the year 2000 battlegrounds in the outsourcing arena. Gartner Dataquest’s Bruce Caldwell, senior analyst-outsourcing, recently completed reports and forecasts from his company’s surveys of end user wants and needs in the world of IT. He says the turmoil in the IT services marketplace this past year was a factor in a dip in the IT services revenue that had been forecasted for 2000.
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.
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 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.
Outsourcing Center, Kathleen Goolsby, Senior Writer
Application Service Providers (ASPs) attracted more attention than anything else in outsourcing in 2000. Kirk Krappe, senior vice president of products and markets for Corio, Inc., one of the industry’s pioneers and leading ASPs, predicts even more incredible growth in this arena for 2001.(outsourcing, asp)
Jessica Goepfert of IDC
International Data Corporation (IDC) in Framingham, Massachusetts completed a year-end study to determine the breadth of knowledge about application service providers. Half the executives interviewed had heard of the term ASP but only 6 percent had a detailed knowledge of what an application service provider does, reports Jessica Goepfert, senior ASP analyst for IDC.
Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer
If you are a salaried employee in the Netherlands, there’s a 50-50 chance that Pink Roccade produces your paycheck. If we are one day late, there’s a big economic problem, says Hans Kateman, communication manager for Pink Roccade, an IT outsourcing supplier in Apeldoorn, the Netherlands.
Outsourcing Center, Kathleen Goolsby, Senior Writer
Trust plays a crucial role in government outsourcing. Adrian Moore of the Reason Foundation says that the less tangible things are, the more important trust is. In outsourced infrastructure projects, trust is less important. A project to construct a bridge, for example, is tangible in that you test to establish whether it was built soundly. But in a contract for such services as child adoption placement, managing a prison or welfare benefits, the outcomes are open-ended. Much of what the government wants to happen is well defined and measurable, but a lot of it is not. That type of circumstance will require trusting the vendor a great deal…
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