Partners in the Chicago, London, Sydney, and Hong Kong offices of Baker & McKenzie share their observations about trends in their regions and their industries, including their thoughts on offshoring. Is outsourcing the legal department the next BPO process?
How can you ensure your outsourcing service provider effectively interfaces with all your other vendors? We looked at proactive and reactive maneuvers to ensure all suppliers work together to meet the buyer’s objectives.
Information technology is moving from legacy information into a commodity. This inexorable shift is altering the nature of the relationship between buyer and supplier. That has been a pretty big change in the market last year, says Bob Chaffin, contract manager of IS for General Motors Corp. in Detroit, Michigan. Today, vendors must differentiate themselves in the marketplace and create an important distinction between their value added abilities and the commodity they are selling…
Outsourcing changes are usually linked to developments in the computer industry. In the past, mainframe operations have been the dominant way in which a company runs its information technology (IT). So consequently, outsourcing has drifted towards farming out entire computer centers. With more decentralized operations, such as LANs and WANs, the possibilities of selective outsourcing has become reality, opening the door to multiple vendors and the outsourcing of different environments. This leads to the question of whether to choose best-in-class providers or single integrators.
Since the late 1980’s, outsourcing vendors have relied on subcontractors to perform part of the work required in outsourcing relationships. Although customers often assumed that the functions subcontracted were non-critical services, a number of trade press articles a few years ago revealed that the outsourced functions included some that any client would view as potentially at the heart of the relationship.
While the glamorous multi-vendor deals are the ones garnering most of the attention in outsourcing, the real growth in that area will come in the less sophisticated arrangements. That’s the opinion of Bill Martorelli, an industry analyst formerly with Giga Information Group.