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Research & Insight

Function

IT Infrastructure & Applications

From Future Shock to FutureSourcing

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Compaq buyers want their outsourcing vendors to introduce innovation and add value to their outsourcing contracts, observes Thomas Simmons, vice president, eBusiness Management Services for Compaq Global Services in Stow, Massachusetts. Buyers want their vendors to be part of managing today’s complexity. They want us to think of different ways of doing business that they would never have thought of, he says.

Outsourcing Now Has Ebusiness Component

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

When buyers decide to outsource today, you can bet ebusiness considerations are part of the contract. Paul Cofoni, president of the technology management group at Computer Science Corporation (CSC), says he rarely sees an outsourcing proposal that doesn’t have a substantial ecommerce component. Companies want to create a business-to-business (B2B) exchange, use ebusiness to enhance their supply chain management, or simply make it easier for their clients to have access to them…

IT Vendor as Change Agent

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…

Big Companies Embrace Multi-Process BPO

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

The trend to outsource non-core business processes is ‘irreversible,’ says John Barnsley, global leader for Business Process Outsourcing for PricewaterhouseCoopers (PwC), and is steadily moving to include multiple activities. Barnsley attributes an overall increase in acceptance of BPO as an important strategic tool to the rapid transformation in technology. Constant change, accelerated by the Internet, has altered companies’ risk equations.

Sorting Through the Rubble

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.

Double Digit Growth for BPO

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.

ASPs Ready for a Consolidation

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Application service providers (ASP) arrived en masse on the outsourcing scene last year and then proceeded to solidify their place in the marketplace. That was the major happening in the outsourcing world in 2000, according to Dean Davison, vice president at Meta Group, an IT advisory and research firm in Stanford, Connecticut…

Time to Renegotiate

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…

What Does an ASP Do? Let Me Count The Ways

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.

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