Research & Insight

Transition

The Whole Kit and Caboodle

Outsourcing Center, Kathleen Goolsby, Senior Writer

The Whole Kit and Caboodle – In round figures, the outsourcing contract between the U.S. Treasury and its supplier, Wang Government Services (a Getronics company) will be over $100 million over the life of the ten-year contract. Like the old kit and caboodle American saying, Treasury omitted nothing – it has outsourced the management of its entire infrastructure.

Benefits Cures

Outsourcing Center, Kathleen Goolsby, Senior Writer

In 1995 Glaxo Wellcome, Inc. discovered a breakthrough in how to achieve its goals regarding human resources functions within the company. It happened as result of the company going through a merger and coming out of it not prepared to handle the volume of HR activity.

Swan Saga

Outsourcing Center, Kathleen Goolsby, Senior Writer

When CNA Insurance, a business-to-business property and casualty insurer, paddled fast but still encountered a weight that kept it from soaring toward its goals, it hired the wings of Hewitt Associates as its human resources outsourcer in 1998 and really took off.

Five Tips for Vendors

George Atis, Chairman, Outsourcing and Technology practice groups, McMillan Binch LLP

George Atis provides some pointers for vendors that should go a long way towards impressing buyers and expediting the closure of a deal.

Preparing for an RFP

Dr. Wendell Jones

This article summarizes some of the key considerations in the next phase. The goals of this phase are to develop a detailed analysis so you can determine the current costs for the function you are planning to outsource, analyze the risks, and prepare an RFP.

Aligning Interests

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Whiteside, the founder and CEO of netASPx Inc., an application service provider (ASP) based in Herndon, Virginia, says software vendors have to select one of three paths to incorporate the ASP method into their business model.

The Future of Contract Manufacturing

Outsourcing Center, Kathleen Goolsby, Senior Writer

The Future of Contract Manufacturing In the food business over the last decade, innovation and new product introduction has been the key driver. Brand names no longer command the same premium they used to. Steinberg points to recent market shares for new candy bars, snack foods and specialty cereals that have come and gone as evidence that new product life cycles often are very short. This means the innovation engine has to be cranked up pretty high, he says. So most food companies have invested heavily in plants, equipment and process technology over the last decade. According to Steinberg, a growing number of food companies now have too much specialized and inflexible technology that often was designed to make a product that may not be as competitive now as it once was. To become competitive, many consistently over the last decade have been asked to take money out of the supply chain. Profitability has come from continuous cost cutting, rather than top-line growth. Innovation, after all, is difficult; and i

First Aid for HR

Outsourcing Center, Kathleen Goolsby, Senior Writer

Johnson & Johnson is the largest and most diversified healthcare company in the world. It manufactures world-renowned health care products and provides related services to consumers and pharmaceutical markets, selling products in more than 175 countries. With more than 190 operating companies in 51 nations, the company has more than 99,000 employees worldwide. It’s a human resources migraine, to be sure!

Strategic Defense

Outsourcing Center, Kathleen Goolsby, Senior Writer

With technology requirements aimed squarely at their weakest point, yet with a goal to be the government’s choice to build 21st-century destroyers, BIW made the strategic decision to outsource all of its IT operations to Computer Sciences Corporation (CSC). We felt CSC would be able to support us in our effort to achieve our goal of being a technology leader and could do it at the rate at which our customer would like to see it done. Bowie admits that BIW had blinders on when it outsourced in November 1996, not realizing the extent of technological advancement that would be required. The original contract spend was about $27 million, and it has now grown to include new services and a value of nearly $50 million over four years. Because its customer was driving certain initiatives, BIW found it needed new PCs for all employees so that they could do design work more efficiently and win more government contracts.

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