[LINK] Selective Outsourcing: Partnerships With Purpose
Tue, 31 Oct 2000 10:20:02 +1100
For a government that prides itself on "World's Best Practice", they are a
long way behind the current action in IT Outsourcing
The ongoing initiatives of Group 1 and Group 11, never mind the Science
Group (9) are all "a simple purchase of services."
I wonder if Mr Fahey's high priced New York advisers are advising him that
what he is doing is now considered to be less than optimal. An interesting
case of "conflict of interest" there. - and we know how good this
government is at dealing with that little subject.
Selective Outsourcing: Partnerships With Purpose
Beyond Computing, October 2000
Technology outsourcing today is a partnership between the enterprise and
the outsourcing company. Very often, that partnership involves selective
outsourcing: focusing on particular IT projects rather than the whole
Companies that currently outsource one or more IT operations do so for many
reasons, not just to save money. Increasingly, they are viewing outsourcing
strategically -- as a way to gain maximum value from IT assets. In fact,
New York-based consulting firm Deloitte & Touche found that, for many
companies, a cost saving was the lowest priority.
Still, the benefits must be significant, since enterprises currently spend
roughly $100 billion a year on IT outsourcing, according to the META Group,
a Stamford, Conn.-based consulting firm. Much of that is being spent on
selective outsourcing -- specific projects rather than the whole IT
"The days when an outsourcer took over all of IT and kept its client in the
dark about operations are largely over," states Dean Davison, a META vice
president. "Today, outsourcing clients are much more involved and
Indeed, technology outsourcing today is really a partnership between the
enterprise and the outsourcing company, rather than a simple purchase of
If Microsoft owned Boeing! Would you fly in one of their planes?
-- Stewart Fist