Outsourcing
Giga, 5/16/02: Vendor Management for Outsourcing and IT Services — The Role of the Chief Sourcing Officer
Julie Giera
Outsourcing is increasingly being viewed as a strategic tool companies can employ to improve earnings, improve service, mitigate risk and concentrate on core competencies. Our research has found, however, that very few companies establish formal management methodologies and processes to oversee these relationships. In a recent Cutter Consortium survey, 43 percent of respondents said that their internal personnel were unprepared to manage the complexity of these relationships and cited this as a major problem (although 73 percent of respondents indicated they had multiple vendor relationships).
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Infoworld, 5/16/02: Colgate taps IBM for hardware infrastructure
By Juan Carlos Perez
MIAMI - COLGATE-PALMOLIVE Co. is giving its IT infrastructure a good scrubbing.
The company has chosen to standardize its hardware platform on IBM Corp. products to establish what it hopes will be a solid, scalable and reliable foundation for its IT infrastructure development in the coming years.
In particular, the giant maker of consumer products wants to support the expansion of its already broad implementation of SAP AG's enterprise resource planning applications.
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Infoworld, 5/16/02: Rabid competition shrinks IT services prices
By Juan Carlos Perez
WITH COMPETITION IN the IT services market at its most aggressive point ever, providers are facing unprecedented pressure to lower prices, a double-edged sword for clients, according to Gartner's Dataquest unit.
When choosing an IT services provider, clients must consider other factors in addition to price. Providers that offer the lowest prices sometimes compromise on quality and fail to meet the clients' expectations, according to Dataquest.
IT service providers, on the other hand, must adapt to the reality that the norm for annual revenue growth in this market going forward will be under 10 percent, Dataquest said in a statement Wednesday.
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Gartner, 5/15/02: IT Services Sourcing Goes Strategic
Continued tactical outsourcing will cause significant degradation of productivity and customer retention. The agile organizations of the future will skill up to the challenge of strategic IT sourcing.
Introduction
For more than 30 years the high-tech industry has experienced a series of long stretches of promising productivity, interrupted by moments of harsh reality. In this “post-e” era of uncertainty, user organizations are re-evaluating initiatives and attempting to define the elusive business value they desperately seek from their IT assets. Service providers are re-inventing their companies to take advantage of the massive adoption of the Internet and prepare for the next battle of value propositions that are being constructed around business process and vertical industry solutions.
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Microsoft
Press Release, 5/14/02: Microsoft REJ Methodology Touted for Quantifying Value of IT Investments
PASADENA, Calif., May 14, 2002 -- The incessant blare of a fire alarm interrupted one of the first speakers last week at Microsoft’s second annual Business Value Summit. Though the Pasadena hotel eventually issued an all-clear notice, the unexpected interruption was appropriate for the task at hand.
The event gathered more than 200 IT executives, technology industry analysts and Microsoft employees to answer another type of alarm -- one that’s going off in many corporate boardrooms.
After investing in IT for decades and spending mightily to avert Y2K problems, the top brass at many companies now want quantified dividends from their IT investments. Just as they scrutinize other capital expenditures, directors are demanding measurable returns on their technology investments. The current economic slowdown has only magnified their desire to ensure that IT investment not only creates value, but also delivers business advantage.
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