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Our interviews with the "créme de la créme" of the industry reveal exciting trends and glimpses into the future. While outsourcing continues to penetrate its traditional niches in data centers, desk-tops, and application maintenance, it is also heading into new frontiers. For example, EDS continues to drive a concept called "Cosourcing" which is directed toward business performance. Purchasing/supply chain management, HR functions, and business processes such as accounting are all increasingly being outsourced. And there is a continual flow of new entrants into the outsourcing arena. One type is outsourcing funded through new startups, often with venture capital, such as Intellisource, a successful start-up funded by Safeguard Scientific. Another type is companies that take their existing infrastructure and turn it into subsidiaries that provide outsourcing services to themselves and others, such as Shell Services Corporation. In addition, the industry continues to seek resolutions to the unanticipated management problems that outsourcing brings. Customers still feel there is a general lack of flexibility in many outsourcing relation-ships suppliers prove difficult to adapt to changing business conditions or objectives. Further, as outsourcing moves from purely a cost saving device into a strategic tool to achieve competitive advantage, these problems of management become increasingly apparent. Flexibility, accountability, and continuous improvement become more important as customers want to shift their outsourcing relationships from a traditional fixed cost over time to a continuous improvement model. In response to these issues, specialized companies are appearing that offer specific methodologies, conferences, training, consulting, and software tools to deal with the outsourcing process. Read on, to learn how the industry leaders are addressing these issues and more. Publish Date: May 1997
Copyright © 1997 - Everest Partners, L.P. |
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