IT Infrastructure & Applications

Cultivating a High Yield in Outsourcing

Outsourcing Center, Kathleen Goolsby, Senior Writer

The fourth largest steel company in the U.S., National Steel manufactures steel for the automotive, construction and tin container industries and has annual shipments of almost six million tons of flat rolled products. The company outsourced the housing and operation of its mainframe and data center services to IBM in November 1998 with a seven-year contract worth nearly $60 million. John Davis, CIO of National Steel, explains that they wanted to reallocate its human resources to solve National Steel problems, rather than technology problems. I wanted them working on solutions that would differentiate National Steel from other steel competitors, he says. The company has accomplished that and other goals, and their agreement has yielded far more than they asked for. But, after all, National Steel is no novice to outsourcing. In the 1980s, National Steel spun off its data center (which then became a part of ACS).

Magnificent Medicaid Management

Outsourcing Center, Kathleen Goolsby, Senior Writer

Medicaid is one of the most controversial, complicated and expensive programs in U.S. government. It’s very political, so there is a high level of interest, and there is also a lot of change going on in it all the time, says Peggy Bartels, Administrator of the State of Wisconsin’s Division of Health Care Financing. So any entity that provides outsourcing for Medicaid is going to be in a fishbowl environment. It’s very difficult. She explains that the process of reviewing and making determinations about whether or not Medicaid will fund services is all done under the very close supervision and administration of the State. Decisions are controversial. By being our business partner, the outsourcer invites the same criticism we receive, she adds. They’re in the bull’s eye, and it is a big challenge to do that kind of work and maintain a positive presence. Nevertheless, EDS took the challenge and has been the Medicaid fiscal agent in the State of Wisconsin since their outsourcing agreement began in 1977.

Zeal for the Zone

Outsourcing Center, Kathleen Goolsby, Senior Writer

BMC Software could not be more enthusiastic about its new and effective outsourcing relationship with ReleaseNow Corporation. As one of the world’s largest independent software vendors, BMC delivers the comprehensive eBusiness systems management software. It guarantees the fastest implementation so, naturally, that was a primary concern when the company decided last year to launch a new eBusiness Web site.

Outsourcing is Taking Three Forks

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 …