Research & Insight

Research & Insight

case study

Feathering Each Other’s Nests

Outsourcing Center, Kathleen Goolsby, Senior Writer

Birds of a feather flock together aptly describes the beginnings of the outsourcing relationship between Commonwealth Bank of Australia and its supplier-partner, EDS Australia. Both organizations are huge, both are global, both are renowned for the top-notch services they provide for their customers, and both fly on the wings of innovation when it comes to business ventures. Commonwealth is Australia’s largest domestic financial services organization (largest domestic bank, largest funds manager, largest online stockbroker, and among the largest insurance companies). It has more than 10 million customers, more than 110,000 location points, 3000 ATMs, 120,000 point-of-sale terminals, Internet banking, online telephone banking; and its Web site handles more than 10% of the total trades on the Australian stock exchange on any given day. 1,400 Commonwealth employees transferred to EDS when the October 1997 contract was signed.

Digital Dilemma

Outsourcing Center, Kathleen Goolsby, Senior Writer

Without a doubt, today’s competitive forces have pushed the role and importance of customer relationship management up to the top rung of the ladder to success for organizations. As it is so vital, it has become a specialized area and an industry in itself. Thomson Consumer Electronics, which manufactures electronic products for the well-known brands of RCA, GE and Proscan, came to understand in the mid 1990s that customer care is a separate skill and a trade apart from manufacturing. We are in the manufacturing business. We wanted to develop a partnership with a company that had expertise in managing a customer care center and call center, recalls Scott Medawar, Manager of Customer Care Operations for Thomson. They began outsourcing these strategic functions to Spherion in 1997. Prior to their agreement, Thomson had operated its own call center and had a relationship with Norell to staff the center (Norell later became Spherion).

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,

Zeal for the Zone

Outsourcing Center, Kathleen Goolsby, Senior Writer

BMC Software could not be more enthusiastic about its new and effective outsourcing relationship with ReleaseNow Corporation. As one of the world’s largest independent software vendors, BMC delivers the comprehensive eBusiness systems management software. It guarantees the fastest implementation so, naturally, that was a primary concern when the company decided last year to launch a new eBusiness Web site.

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…

A Ship Shape Outsourcing Relationship

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Long before the Internet, the travel industry has been in the forefront of computer automation. As far back as the 1970s, airlines that couldn’t harness technology effectively crashed and burned. (Pan Am and Eastern, for example.) But because of the complex nature of booking ocean liners, cruising has been the last bastion for manual bookings, according to David Anderson, vice president of technology for GoCruiseDirect.com, a Miami, Florida company.

Giving IT Capabilities Some Real Structure

Steve Gust

As a vendor, (i)Structure is gaining some real momentum in the information technology field. Lots of companies are starting to put faith, and more importantly contracts with the business, a subsidiary of Level 3 communication. Its services are being used by the Bradford Exchange, Vlassic Foods Int. and most recently Corporate Express Inc., a world office supplier with 400 facilities and 15,000 employees…….(outsourcing)

Netsourcing: the Life Blood of an ISO

Steve Gust

Larry Marcus, president and chief executive officer, of NY based MiracleNet.com knows that his service needs to be up to par when it comes to being an ISO. There are simply too many others out there. AOL, EarthLink and MSN are always looking for information Superhighway travelers. MiracleNet.com offers subscribers a chance to make money with memberships. If there are hiccups getting online, revenue can be lost……(outsourcing

Family Thais Lead to Bangkok.com

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

The founders of Bangkok.com, who are based in Boston, Massachusetts, planned to resell the domain later for big bucks. But to underwrite their investment, they decided to offer email forwarding to anyone who wanted a Bangkok.com domain name. Our vanity email address wasn’t terribly successful, says Stanhope, who is the general partner. The founders sold 100 year-long subscriptions at $35 each……

Underwriting a Successful Result

Outsourcing Center, Beth Ellyn Rosenthal, Senior Writer

Before homebuyers can complete the transaction to purchase a home, they must demonstrate they have also arranged for homeowners insurance. Up until now, the process for obtaining that coverage was almost as arduous as finding the house in the first place…..

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