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Two weeks ago Oracle agreed to buy Taleo, a maker of online human resources software. Last October the company purchased RightNow Technologies, a maker of Web-based customer services software for $1.43 billion.
That’s two cloud-based companies. What does this mean for the outsourcing market?
I say the big ERP and database companies finally have to admit the cloud is here to stay. In the past Oracle’s CEO, Lawrence Ellison, has publicly stated cloud would not be a profitable IT arena, so the company has stayed away from not only cloud solutions but virtualization as well. This is inherently strange since… Read the rest
The heavily regulated and IP-driven life sciences industry operates in a state of continual flux. This dynamic nature of the industry throws a diverse mix of powerful challenges and equally promising opportunities at the pharmaceutical executive all the time.
Some of the key challenges facing pharmaceutical companies at the moment are:
- A patent cliff
- Dwindling pipelines and late-stage attritions
- Rising cost of commercialization
- A host of healthcare cost containment measures adopted by regulators and payers across key markets
To offset the revenue loss triggered by major patent expirations, companies have moved towards innovative therapies—often biologics—for niche indications with… Read the rest
When was the last time you purchased a home? Last year? A few years back? Five, perhaps 10 years ago? Did you hire a realtor, or did you go the whole way through on your own? For most people, domestic and internationally, the decision to purchase a home is one of the single most important and largest financial transactions a person makes and experiences. As a potential home buyer, you have limited knowledge (even within the locale in which you focus your search). At best you have a handful of experiences in the process (and those are usually a few years removed), and you lack access… Read the rest
As the outsourcing service provider landscape continues to shift through mergers and acquisitions, how can buyers construct their contracts to protect what they envision in the relationship despite a change in provider ownership? I spoke with two attorneys, James Nelson and William Russell in the New York office of Venable LLP, who frequently counsel clients on mergers and acquisitions and outsourcing matters, and asked them about insights and best practices to protect the interests of buyers of outsourced services.
Q: Sometimes when a service provider is acquired, some of the service delivery nuances that were in place with the prior… Read the rest
Procurement outsourcing is maturing. Buyers in the first wave outsourced primarily transactional-rules-based activities, with labor arbitrage in low-cost countries being a key benefit. As those relationships mature, buyers look to their providers to create additional value beyond labor arbitrage. I talked with two Infosys BPO executives, Srikrishna Koneru, Global Sourcing & Procurement Outsourcing-Solution Design Head, and Rajiv Gupta, Geo Business Manager, about procurement/sourcing trends, how Infosys is helping its customers move up stream and capture more value, and about how Infosys’ Joint Innovation Board benefits customers.
Q: How does the value proposition differ in “sourcing support” compared to “procurement,” in… Read the rest
With outsourcing being used for ever-more complex services, there are more variations and risks that could impact intellectual property, particularly when outsourcing product development or research and development (R&D) functions. I spoke with two attorneys, James Nelson and William Russell in the New York office of Venable LLP, who frequently counsel clients on intellectual property and outsourcing matters and asked them to share some insights for buyers of outsourced services in these situations.
Q: There are so many companies that don’t use third-party consultants or attorneys anymore because they have experience in outsourcing and have a center of excellence or… Read the rest
The long-term evolution of industries has long been studied. A small market grows when competitors fill niches and primary demand increases. Innovation sparks products. Services refinement and differentiation then occurs. More providers enter the market and then, as the growth cycle matures, scale and leverage become forces for consolidation. Now joining those ranks: the IT and business process outsourcing industry.
Three recent transactions – HP buys EDS, Dell buys Perot Systems, and Xerox purchases ACS – point to a future where “one-stop shopping” indeed becomes a reality in the outsourcing market.
With IBM Global Services leading this pack of “full-service” providers, what… Read the rest
Cloud/BPaaS offerings are gaining a lot of attention in media, analyst, and advisor discussions. For the BPO providers, Business Process as a Service (BPaaS) seems all the more important because this can potentially drive the non-linear revenues combining tools + technologies + services.
It is a potential option but not a panacea to all issues or the only direction the industry will take. We need to make sure that we cut through the hype and stay focused on what works for the customers and build the capabilities around that.
In BPO scenarios, large clients typically approach vendors to outsource processes… Read the rest
The BPO world has come a very long way over the past decade! We have seen significant change in the market, both from buyer and supplier perspectives.
Buyer requirements have evolved across the board to enhance the range of processes that they outsource and the way they structure the engagements and what they demand from a BPO partner.
Providers have evolved to keep pace with buyer interests, and in many ways have also influenced the same by creating and demonstrating capabilities that have strongly contributed to the evolution of the buyers’ thoughts.
Overall, from my perspective here is what that… Read the rest
The cost take-out initiative that companies started in 2008-09 continues as it was a multi-year program. The first tranche of savings came in from discounts from vendors. However, to get a sustainable cost advantage, transformation is essential. Without this, further cost take-out will be extremely difficult.
In addition, organizations are increasingly looking to achieve much more. Business and IT alignment, more meaningful reporting, better coordination between various departments, a reduction of the overheads associated with managing multiple vendors are some of the areas that have potential for significant improvement.
Organizations are willing to increase their discretionary spend but the expectation… Read the rest
Recent Comments
“Great interview with a top professional! Shared. Mel, alldayPA ”
“I like your orchestra analogy. I would like to start a discussion on knowledge transfer as a focus group for my ...”
“I am a university student studying alliance collaborations that involve sourcing of work internationally and would like to start a ...”
“Yes I totally agree with you price benchmark every year would be a great idea to keep up. ”
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