Treating vendors as partners rather than as mere suppliers can lead to not only better service but also reduced costs and improved innovation. At Express Scripts, a pharmacy benefit management firm in St. Louis, the vendor management process has been key in supporting massive growth over the past few years, writes Peter High at CIO Insight .
Conventional wisdom says that a clear, thorough contract is at the root of a successful outsourcing relationship, but not everyone agrees.
While CIOs can show off their IT skills on daily basis, they don't always get the chance, or time, to showcase their business or strategic acumen.
When deciding on new technologies, companies historically have placed heavy emphasis on features, quality, performance, manageability, scalability, the vendor's reliability, terms and conditions. Price often was considered last in selecting legacy systems, leading Bob Lewis at InfoWorld to ask why economics looms so large in discussions about cloud-based technologies.
With many CIOs worried that their jobs--and maybe even their departments--will disappear in the not-too-distant future, it's time to start thinking about the roles that will define IT leadership going forward, writes Charles Araujo in CIO Insight .
It's natural for companies to want to make use of the latest hot technology, but that doesn't mean just any emerging technology is right for your company--even if it is already being adopted by your competitors. And one useful lens for evaluating proposed innovation is risk, says TradeMonster CTO Sanjib Sahoo in Wall Street & Technology .
Security issues, as well as a language barrier, have kept China's IT outsourcing industry from becoming a serious threat to India's thriving counterpart. The Chinese government's reported role in hacking companies in the United States may further thwart the nation's outsourcing prospects, reports Patrick Thibodeau at Computerworld .
Outsourcing still holds out the hope of cost-cutting for many enterprises, but savings aren't always as great as projected, as the wage gap between onshore and offshore labor diminishes. With these realities in mind, outsourcing customers are coming up with new and varied sourcing models
With somewhere between 48 percent and 62 percent of total IT expenses flowing from companies to outside IT vendors, the technology supply chain determines much of an IT department's economics.
The value of IT outsourcing contracts in the fourth quarter last year fell 37 percent from the same period in 2011, according to the consulting firm Information Services Group. The $2.9 billion decline was largely the result of a reduction in contracts for new services.