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Outsourcing Journal June 2008 Issue

 

EDITOR'S CORNER
Dr. Christian Baader, SAP: Dr. Christian Baader, SAP vice president, is one of the architects of SAP’s unique BPO partnering model with service providers. Read why Dr. Baader thinks the BPO market is bipolar, why BPO should become more like automobile manufacturing, and what the movie The Bucket List can teach everyone.

EVEREST VOICE
What U.S. Insurers Can Learn from their UK Counterparts: UK insurance companies faced significant bottom-line pressure in the early part of this decade. Company leaders realized sending work to lower-cost countries was the best way to thrive and survive in the prevailing market conditions. Punit Bhatia and Stephen Dunn outline the secrets of the UK insurance companies’ success (starting slowly and using both service providers and captives) and the risks (rising salaries and voice outsourcing).

FOCUS ON: Service Management Tools
How Service Management Software Solutions Enhance Outsourcing Relationships: Currently, a growing number of enterprises expect service providers to use service management tools, especially those aligned to ITIL v3 best practices in managing services as a business. This article discusses the trends around uses and benefits of such tools, their differences in value and approach, and how the tools enhance even the soft relationship skills in an outsourcing arrangement.

FOCUS ON: Core Banking Systems
Outsourcing the Replacement of Core Banking Systems: Capgemini’s study examines the trends in drivers and timing for banks undertaking core banking systems replacements. This article also discusses options for outsourcing components of these projects and choosing the replacement systems.

Travel, Aviation, and Hospitality Outsourcing

FOCUS ON: Retail and IT
Salt Lake City Airport's Gift Shops Cut Theft, Improve Inventory Control Thanks to Hosted Solution: Travelers flying in and out of Salt Lake City International Airport love to buy Utah T-shirts. Before switching to a hosted retail software solution, the Air Terminal Gifts stores frequently ran out of stock, thereby losing sales. Today the warehouse delivers stock to stores running low before they run out. Hosting also eliminated both the corporate and store servers.

FOCUS ON: HR and Hotel Management
Buyer's Influence on Provider Spurs Both to Greater HRO Success: Sometimes an outsourcing engagement seems like a good idea in the beginning. But later things don’t seem to work as they should. The partners can only find success by reminding themselves why they’re doing business together. That’s when Pinnacle Hotel Management’s suggestions changed Gevity.

FOCUS ON: IT, Offshoring, and Airlines
Sabre Tests Strategic Offshoring with NIIT Technologies, Then Opens Captives Around the Globe: In 2001, Sabre Holdings evaluated options to reduce its sales and distribution costs. But the company also wanted to minimize the risk of having all its IT knowledge in one region. Its first offshoring relationship was with NIIT. That has been so successful Sabre has since opened its own captive centers in Poland, India, Argentina, and Uruguay. This story relates the benefits of this model.

 


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