Research & Insight

Function

Procurement

Getting a Handle on Purse Strings

Outsourcing Center, Kathleen Goolsby, Senior Writer

Because of its poor position with respect to costs (three years ago), the bank hired Peter Donald, an outsourcing veteran with noted success for the City of Melbourne. ANZ wanted him to identify outsourcing opportunities and to apply his prior successful principles in implementing outsourcing for the bank. Donald recalls that this departure from conservative thinking sparked internal challenges. Although the bank had decreed that something had to be done about its costing structure, there were degrees of tension among management when it came to identifying which opportunities might be selected. The opportunity identified was the bank’s procurement — its sourcing function — because it was not providing the level of strategic importance to the bank that was desired. We spend just under $1 billion Australian dollars per year in Australia and New Zealand (a total of about $1.5 billion worldwide) on a whole range of items from telecommunication to stationary, from technology to marketing and travel,

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.

2001: An Ecommerce Odyssey

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

This year will be the year of ecommerce outsourcing. But the seeds were sown last year, according to Richard Raysman, a partner at Brown Raysman Millstein Felder & Steiner LLP, a law firm in New York City specializing in outsourcing. Last year startups popped up and new ecommerce companies gained market share. Raysman mentions i2, Commerce One and Ariba as three relative newcomers that last year proved they could be enormously successful in the ecommerce arena…

Watertight Plan

Outsourcing Center, Kathleen Goolsby, Senior Writer

Plainfield’s Town Council decided to use Competitive Government Strategies, Inc. as its consultant for the procurement process. They had seen its president’s success when he had implemented in earlier years the privatization of the operation and maintenance of the Indianapolis sewer utility and the utility billings. Plainfield wanted to take a similar approach…

Scaling the Hurdle of Trust

Outsourcing Center, Kathleen Goolsby, Senior Writer

Been there, done that is not a trite phrase to Skip Stitt, founder and president of Competitive Government Strategies, Inc. His consulting firm assists cities, counties, states and private-sector not-for-profit organizations on outsourcing and privatization. From experience, he knows it’s vital that government entities base their strategic decisions on best practices, for he was once a buyer. As chief operating officer and senior deputy mayor for the City of Indianapoli…

Changes in Accountability for eBusiness and Internet Initiatives

Outsourcing Center, Kathleen Goolsby, Senior Writer

To be held accountable means one is subject to certain obligations. In the world of outsourcing, both buyers and suppliers must take preventive measures to ensure an equitable and successful relationship. For the buyer, this means structuring an effective contract that details a broad range of ways in which the supplier will be held accountable. These include audit and benchmarking rights, user surveys and disaster recovery plans. There are termination rights and the right to sue afterward as well as service levels and their related credits or penalties. And, of course, the contract describes various legal remedies in the event of failure……

E-Procurement Evolving in Europe

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Vincenzo Marino worked for a company that used robots on an automobile industry assembly line. There, he watched as workers sat idle while the plant waited for a crucial part that someone had forgotten to order. Every time you make a mistake, the company loses time and money, observes Marino. In 1989 Marino left to join Unitec, an outsourcing supplier specializing in supply chain management and logistics. The company has two offices in Europe, one in Augsburg, Germany, the other in Saubaudia, Italy. Marino, the CEO, was determined to improve the process….

E-Government: From Standing in Line to Going Online

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Every year American individuals and businesses complete about $600 billion worth of transactions with the local, state and the Federal governments, excluding their various tax payments. To date, less than one percent of those interactions occur on-line, according to Adrian Moore, director of privatization and government reform for the Reason Public Policy Institute, a Los Angeles-based think tank that studies government management. But, like death and taxes, you can be sure that percentage will increase.(outsourcing)

Connect with a Sourcing Advisor at Outsourcing Center

"*" indicates required fields

Let’s talk more

Consult Form

"*" indicates required fields

This field is for validation purposes and should be left unchanged.