Outsourcing
ITWorld, 6/26/02: Special Report: Outsourcing Update
Stephanie Davidson
"...and that's when it hits you, you are so ready for IBM."
Ready or not, outsourcing is in your face. These days there are no ways to avoid the CEO's question (he sees Big Blue's commercials too): Is outsourcing the panacea IBM and others claim it is? Of course outsourcing is not new, nor is the IBM advertising theme. You might remember their old message: You'll never get fired for buying IBM. Feeling a sense of deja vu?
But you still have to answer the CEO's query. And answer it in a way that he can understand. In other words, how will outsourcing affect the bottom line? Obviously, cost savings is not the total answer. Before answering the cost question, you must decide what makes sense to outsource. Next, factor in things like security and service (along with guarantees that your company will get what it pays for). The next step is to figure out whether it makes sense to outsource the company IT jewels: customized business applications, which add value and a unique competitive advantage.
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Infoworld, 7/5/02: Banking on outsourcing
By Jack McCarthy
July 5, 2002 1:01 pm PT
CTOS AND MARKET analysts took note early this year when American Express announced it had agreed to pay IBM's global services division $4 billion over seven years to take over provisioning and management of the credit card giant's noncore IT operations.
In the 18-month analysis that led up to the February 2002 agreement, Steve Karl, senior vice president of technology operations at the Stamford, Conn.-based company, thought hard about giving up control of part of his IT operations. Ultimately, says Karl, the decision to outsource large-scale operations aligned IT with the company's aggressive growth strategy.
The IT resources of American Express could be better focused on core business, a proposition becoming ever more demanding, Karl says. "I felt we were running out of runway," says the vice president of the constraints on his resources.
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IT Management
Forrestor, 6/18/02: Forrester Research Defines Organic IT, The Next Corporate Computing Revolution
Organic IT Presents CXOs With A New, Holistic Way To Think About Technology Investments And Deployment
Cambridge, Mass., June 18, 2002 . . . In 1987, Forrester Research (Nasdaq: FORR) presciently coined the term "client/server" to describe a massive shift in how companies would deploy technology. Fifteen years later, fundamental technology trends have already begun to create a new corporate technology architecture shift that Forrester calls Organic IT. Unlike the rip-and-replace nature of the client/server revolution, Organic IT will enable global companies to squeeze 50% more value from sunk technology investments inside their datacenter, commoditizing some technologies, lowering internal management costs, and increasing business flexibility and response. Meanwhile, the shift to Organic IT will drive brutal vendor transformations as vendors begin revamping their products now through 2004.
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