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Outsourcing Journal May 2006 Issue

 

EVEREST VOICE
IT Outsourcing and Pricing: How Much, How Long, and What to Price?: How do buyers know if they negotiated the right price for their IT deals? Frank Usher says asking the right questions is crucial. Here's how to frame those probing queries.

ANALYST CORNER
Will the Labor Arbitrage Advantage Disappear?: Will offshoring's success raise wages in offshore locations so high that it stops making economic sense to move the work there? The Everest Research Institute studied the data for six months, examining the sustainability of labor arbitrage between five key locations offshoring work and six key locations receiving that work. The bottom line: offshoring will make economic sense for 20 years or more.

FOCUS ON: Procurement
Buying Consortia: A Hybrid Outsourcing Solution To Remove the Headaches of Indirect Spend: Today companies are joining buying consortia to purchase non-core supplies and processes that don't give them a competitive edge. Read how this hybrid outsourcing solution allows members to both save significant sums and share knowledge.

FOCUS ON: Real Estate
Outsourcing the Headaches of Chasing Down Insurance Certificates: Collecting certificates of insurance and managing insurance compliance is crucial in minimizing the financial risks from accidents occurring on your property. Here are the many reasons why companies like Coca-Cola Bottling Co. are turning to outsourced solutions for this process.

FOCUS ON: Manufacturing
Trading Up - Outsourced EDI: When its electronic data interchange administrator left, a manufacturer chose to outsource this function rather than replace him. Here's why the company discovered "the ROI of outsourcing was big."

FOCUS ON: Legal
Is Your Information Secure? Outsourced IT Still Requires In-Sourced Risk Assessment: Outsourcing your IT doesn't relieve you of security obligations. Try telling the CEO that it's alright that you lost customer information because "we have an IT outsourcing contract." Just don't tell him about the supplier's limitation of liability provision. Attorney Bruce Leshine shares legal ideas to protect your data in an outsourced environment.

The Public Sector Outsourcing Issue

FOCUS ON: Trends
Trends Point to Far-Reaching Changes in Government Outsourcing: Government outsourcing deals in the US have taken on significant new characteristics. Here are the big changes that put government deals on a par with commercial deals.

FOCUS ON: Local Government (IT)
Outsourcing Its IT Department Helps Falls Church Provide Services for Demanding Citizenry: Unfortunately for the city of Falls Church, Virginia, major IT employers like AOL are in its backyard, making high tech hiring "brutal." Half the IT department was vacant before outsourcing solved the problem.

FOCUS ON: County Government (Child Support Enforcement)
Outsourcing Brings Better Service to Clients and an Award to the Program: Many parents in El Paso County, Colorado, don't want to pay child support; the county has the second largest case load in the state. Outsourcing enforcement improved collections when the supplier offered performance awards to its staffers. And the kids won, too.

FOCUS ON: County Government (Homeless Services)
Homeless Management Helps Community Care for Indigent Citizens: Wake County, North Carolina wanted to get a more accurate sense of its homeless and help them better. The county government and 16 non-profit and faith-based organizations worked with Softscape to develop and host a management information system. It's been so successful New York City and Chicago adopted it, too.

 

 


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