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Research & Insight

Industry

The Russians Are Coming!

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Émigrés typically savor the wealth of business opportunities when they land on the promising shores of America. But the partners at Octet Media L.L.C. in New York City learned that their financial future was still tied to the folks back home.

Constant Coverage on Two Continents

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Cost reduction often is the primary push to outsource a non-core area. And when the savings are significant, slashing the costs almost in half, more and more American companies are taking advantage of the lower price, even if the supplier is half way around the world.

Lowering the Cost of People

Outsourcing Center, Kathleen Goolsby, Senior Writer

Initially, the e-commerce world was peopleless; there was a manufacturer and a consumer and almost no one in-between. Ironically, it is becoming clear that what is going to separate successful companies from unsuccessful ones in the evolving e-commerce world will be people. Outsourcing makes this possible.

Counting on Communication

Outsourcing Center, Kathleen Goolsby, Senior Writer

From the Editor: Outsourcing drove down costs for Hallmark, which was the original intention. At the same time, outsourcing allowed Hallmark to sustain its high quality of customer service and satisfaction. Moreover, it’s interesting to see how this relationship grew and prospered over the years. Building on these strengths, the buyer continues to add more and different services to the contract…

Of Equal Stature

Outsourcing Center, Kathleen Goolsby, Senior Writer

BPAmoco is one of the world’s leading providers of energy and petrochemicals. As the third largest integrated oil company in the world, it enjoys considerable reach and scale. BPAmoco recognized that its core skills revolve around the products that it markets to its customers. Its accounting and transaction functions are not part of that core. We can certainly get comfortable with a third-party providing that service, allowing us to focus our attention on those things that we are good at and need to be good at, suggests David Hulf, CFO of BPAmoco Oil Europe. But only an outsourcer of equal stature would be able to supply BPAmoco’s needs.

Ingredients for a Successful Alliance

Outsourcing Center, Kathleen Goolsby, Senior Writer

Outsourcing relationships work well when each company is able to focus on its core competency. The outcome is even more successful when each firm is a leader in its field. This relationship displays the powerful results when a buyer leverages the best-in-class expertise of a supplier. It is an enlightening case study in how companies should outsource their telecommunication.

Growing Together

Outsourcing Center, Kathleen Goolsby, Senior Writer

Compaq Computer Corporation and Jabil Circuit, Inc. This award illustrates the ability to expand SAP outsourcing into a whole new venue, e-commerce. E-commerce, of course, is the hottest area for outsourcing expansion. Jabil originally outsourced its SAP application to Compaq to manage its global growth throughout North America, Asia and Europe. This outsourcing proved to be the perfect springboard to attack e-commerce….

Impact on Growth

Outsourcing Center, Kathleen Goolsby, Senior Writer

Unisys and First Travel Corporation: This is fascinating example of how an international IT company moved into BPO outsourcing. Outsourcing its back office gave First Travelcorp two strategic advantages: marketing muscle and cost flexibility. First, Travelcorp could provide new, sought after services for its corporate clients, which provided a competitive edge. The result: Travelcorp landed new clients, the biggest it has ever had. And it was able to turn a fixed cost into a variable one, boosting the bottom line.

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