CIO: Outsourcing of business processing is crucial to survival.
the idea of purchasing business processing that is part of the company from outside is difficult to accept in terms of grade and documents. The reasons are obvious: job insecurity, the threat of lower wages, and the risk of handing over key parts of your daily business to outside processing
however, two chief technology officers have done so -- outsourcing the core business processing -- they say that when the company is struggling to survive, ideas can and must change
"when it comes to survival, you often sign contracts," said vasant Bennett, a Barry wehmiller cos. in St. Louis The president of the company in charge of engineering services, whose business is packaging equipment
bennett said at a recent business processing outsourcing conference of IDC that Barry wehmiller became the pioneer of offshore outsourcing strategy with a very wide speed regulation range and a slight beam moving distance in 2000. That year, they encountered trouble when filling the it position of marquipwardunited, their newly acquired business in Philip, Wisconsin
faced with the threat of labor shortage that may hinder the rapid growth of acquisitions, Bennett outsourced its IT business to Chennai, India. Now Chennai's center has 160 engineers, playing an important role in Barry wehmiller company. It helps reduce labor costs and increases the company's ability to make a competitive base bid in some aspects. In some cases, it has increased the size of the company's workforce in the United States. However, the acceptance and support of this strategy are closely related to the special environment of the Department, Bennett said, citing Green Bay's paper converting machine Co. as an example
before being acquired by Barry wehmiller in 2005, under the pressure of customers demanding lower prices and cutting workers, paper converting has been declining since 2001. "They are losing money and need outsourcing to really survive," Bennett said. Finally, "the whole enterprise accepted it."
chief nanny officer
marcia MacLeod is Williams cos The vice president in charge of business processing outsourcing of the company quickly learned the necessity of outsourcing after arriving at the energy company in Tulsa, OklahomaWilliams is one of the largest natural gas manufacturers in the United States. It has 25000 employees. When MacLeod accepted the position in 2000, its share price was close to $50. In 2002, the energy company encountered a crisis, which was dragged down by the Enron scandal, and the news of bankruptcy came out. Its high share price fell from $48 to $28 per share, and finally reached $2, reaching a low of $0.78. The loan from Warren Buffet kept the company from sinking temporarily. At that time, it abandoned everything except its core business, natural gas exploration, production and distribution, and took measures to dissolve 85% of its employees
"BPO is a tool to ensure cost reduction and process improvement," MacLeod said. The highly customized business operations in many subsidiaries make it meaningless for the company to lay off 3500 people. This (4) installation test piece money energy giants fear that they lack "the principle of achieving their own unified business processing," MacLeod said, and can start from a production line and decide that it needs a partner to help promote its strategy of continuous layoffs
so in July 2004, Williams signed a seven-and-a-half-year contract to deliver its finance and accounting, human resources and it services to IBM, with a transaction price of $320 million. As part of the contract, IBM agreed to provide jobs for 460 accounting, finance, human resources and it employees from Williams
outsourcing is a "turning point" for MS that Willia has improved the safety of cyclists, as experts like to say. "For the first time, we can call Williams a growing company," MacLeod said. Now, with 4000 employees, including 1100 in Tulsa, India, Williams is hiring again. "Outsourcing plays an important role."
but change is difficult, even when survival is threatened, MacLeod stressed
the contract has entered its third year, and Williams and IBM are still refining the scope of the agreement, MacLeod said, and Williams still feels the impact of the re alignment. Some employees did not transfer to IBM. Williams' training for employees -- a two-and-a-half-hour course called "how to become a blue giant" -- made some veterans feel the astringency of novices compared with IBM colleagues again
"a lot of knowledge" has been lost, MacLeod said, "so we expect to get back some business analysis work."
on the other hand, an ongoing internal discussion debated whether Williams should continue to idle its own data center. When the center of Oklahoma was flooded last year, and IBM airborne troops came to make payrolls and closed the fiscal year in time, she said. However, the company will continue to sign the it part of the contract, and continue to modify the statement of work, service level agreement, role and in the contract
"never underestimate the impact of change management," MacLeod warned all listeners at the IDC conference in New York. Outside the oil field, employees like to handle things according to "their way, shake hands". Autonomy is hard to die. "Some people still believe that the way they pay their bills will have an impact on their business, which surprises me."
as the contact between IBM and Williams, MacLeod began to call himself CBO -- the chief nanny officer -- to spend time making "children have fun together". Others in the company prefer to call her "a fan of IBM", she joked, although "IBM may say that they didn't see her at all." (end)