
Predictions: Marketplace Turmoil and Change in How Outsourcing Relationships Work Over the Next Five Years | Article
Getting from A to Z (from the current state of outsourcing relationships to the future…
Getting from A to Z (from the current state of outsourcing relationships to the future…
The economic crisis has unleashed a huge appetite for change. Visionary leaders are implementing transformational global sourcing initiatives at an accelerated pace. Linda Tuck Chapman presents a primer on outsourcing leadership.
This article examines three outsourcing relationships and presents the nuts and bolts that enable collaboration. The three relationships share their keys for successful collaboration from the aspects of service provider selection criteria, aligning interests for the long term, and effective communication.
Unilever Europe has 80 factories in 24 countries. The division used 18 ERP systems and hundreds of different finance processes, which led to high costs and varying reliability. IBM turned the organization upside down. This contract is groundbreaking in the FAO BPO sector in Europe in both size and scope.
PSEG wanted to increase value on IT spend and tasked CompuCom with providing end-user support services to more than 11,000 users across 85 locations. They’ve worked flexibly together to ensure their interests remain aligned in developing solutions that increase productivity and decrease down time. Within three years, PSEG realized $16 million in IT services cost savings.
Northern Arizona Healthcare wanted to become one of the top three hospitals in Arizona. Today its executives believe it is as good as any hospital in America. Its new IT system provides easy-to-access, real-time data for its medical staff. The hospital established a $1 million annual bonus if Perot Systems met four stringent financial criteria in its revenue cycle work.
Springhill Medical Center hired Eclipsys to overhaul its IT. Medication errors fell 80 percent and infection rates fell by two-thirds. ER customer satisfaction soared from 11 to 92 percent. System availability went from 56 to 99.999 percent. And the new electronic medical records helped the Alabama hospital weather Hurricane Katrina.
This relationship captured the best in show award because it demonstrated excellence in partnering while revamping the city’s IT infrastructure, including installing a city-wide Wi-Fi network. This new infrastructure played a crucial role in the city’s swift response to the I-35 bridge collapse and the success of the Republican National Convention when the entire nation was watching.
When Catapult entered the scene, the GSA had 39 vendors, 12 versions of its e-mail client, and 15 help desks. Each of the 11 regional offices provided its own IT infrastructure services with differing data security standards. Today, GSA has one IT contract and a consolidated infrastructure. Plus, outsourcing has saved American taxpayers $15 million a year.
During the transition CSC had to move 55 percent of Sun’s application development offshore, hire 450 employees in India during a national boom, and build two data centers in 60 days. Sun Microsystems expected CSC to produce immediate productivity gains with 42 fewer people, maintain service to 35,000 Sun employees, and support 600 applications. Here’s why it worked.