Outsourcing
Gartner, 11/1/04: Look Beyond TCO When Making Strategic Sourcing Decisions
Many organizations make their sourcing decisions based solely on their total cost of ownership. However, if other costs associated with sourcing are ignored, there could be adverse financial consequences.
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Gartner, 11/1/04: Predicts 2005: IT Services and Outsourcing Cut People, Costs
IT services and outsourcing organizations continue to reduce costs through automation and labor substitution. Personnel expenses account for the majority of IT costs.
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Gartner, 10/29/04: Top Mistakes Made in Outsourcing Customer Service Processes
Firms have lost customers by failing to run pilot projects, build up knowledge bases and manage the intersection of outsourced and retained processes. Some have even had to bring operations back in-house, at great cost.
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CIO, 11/1/04: You Can't Outsource Everything
Some outsourcing is inevitable. But as the former deputy CIO of Procter & Gamble learned, it's crucial to retain enough work in-house to train the next generation of IT leaders.
BY GEOFF SMITH
These days, there is certainly no shortage of debate on the relative merits or evils of outsourcing. One thing's for sure: Outsourcing will continue to increase over the next several years. Close to 500,000 American IT jobs have already been lost since 2001, many of them to offshore outsourcing. An unspoken corporate lemming behavior will continue to fuel this growth for years to come. When industry leaders such as GE, DuPont, Citibank, GM or Procter & Gamble do something, others take notice and many will follow.
CIOs cannot single-handedly reverse the forces moving U.S. jobs overseas. While I'd love to see thousands of CIOs come together as a united bloc to influence IT-related policy matters, the sad reality is we don't have a clear, unified voice right now. Therefore, I strongly encourage CIOs to rise above the "religious fervor" and focus on the things they can control in order to ensure the best possible outcomes for their companies, their IT organizations and the U.S. IT industry.
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CIO, 11/1/04: The Inner Cost of Outsourcing
When contemplating outsourcing, CIOs should first think about their people.
BY STEPHANIE OVERBY
Savvy CIOs know there are a plethora of factors to consider before deciding to outsource. How much will outsourcing cost? How long will it take? What technical skills are required? What are the economic risks? (For more on the sourcing decision process, see "One Outsources, the Other Doesn't.")
But even the smartest CIOs can miss one of the most important considerations—the human cost of an outsourcing decision. In the best-case scenario, where there is decent communication from management, and workers keep their jobs or smoothly move on to new ones, the attendant changes can still cause fear, uncertainty and doubt. In the worst case, a major outsourcing decision can have devastating effects, triggering deep depression and even violence among affected employees.
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CIO, 11/1/04: One Outsources, The Other Doesn't
Two companies. Two different dilemmas. How each analyzed its outsourcing options and arrived at differing conclusions.
BY STEPHANIE OVERBY
ON THE FACE OF IT, retailer Sears, Roebuck & Co. and financial services company Huntington National Bank seem to have little in common. But over the past few years, the CIOs at both companies faced a similar conundrum. To outsource or not to outsource; that was the question.
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SMB
Gartner, 1/11/04: Predicts 2005: New Business Priorities Confront SMB CIOs
A changing marketplace demands that small and midsize business CIOs balance their efforts from purely technical matters to business-oriented decision making. Failure to do so could jeopardize the business as a whole.
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Predictions
Gartner, 11/1/04: Predicts 2005: A Focus on Intent Enlivens CRM
Due to demand for precision, design and measurement of customer relationship management efforts, organizations will center strategies on business benefits and customer intent. Real-time decision support will be critical.
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Gartner, 11/1/04: Predicts 2005: Deploy New Technology, Applications for Success
Significant technology events and trends are looming that will challenge or facilitate your growth goals. Many of our predictions promise to have a big impact on your company or industry, beginning in 2005.
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Gartner, 11/1/04: Predicts 2005: Communications Services Are Changing
Communications services will undergo changes in 2005. Prices will stabilize, carriers will consolidate and re-integrate, old networks will be replaced, and voice will see renewed interest.
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