Tag Archives: outsourcing

News You Can Use: 6/28/2017

  • Has outsourcing lost its strategic relevance?

    Somewhere along this journey, global delivery of IT services grew less important and less strategic. Cost savings became the key criteria to measure success and service providers commoditized their offerings to meet market demand. But at what cost? Industry vets would likely point to a lack of innovation, poor delivery or the recent trend to repatriate services. Indeed, the desire for continued cost cutting has made functional CIOs and global IT service providers less and less relevant.


  • The CPO is Dead

    By definition the title of Chief Procurement Officer is no longer accurate or reflective of the job’s responsibilities. The title doesn’t even sound strategic. So I say kill it and demand the correct and more strategic title: Chief Value Officer.

    The concept of CVO is nothing new. It has been suggested as a title for a senior level officer position for a number of years. I researched the title on Linked-In and found that there were actually quite a few people with that title across a number of industries and functions. Wikipedia’s definition “business value: is an informal term that includes all forms of value that determine the health and well-being of the firm in the long run.”

    There is an article every few months saying that the CPO has to evolve into something new (C#O, CVO) and yet there are companies that still don’t have proper procurement discipline. The title is just a title, the function of any good CPO is to bring value and reduce risk. How that is done as business evolves is what separates the good CPOs from the pack.

  • Comcast CEO Brian Roberts talk cord-cutting, customer service, net neutrality

  • Verizon is killing Tumblr’s fight for net neutrality

    One reason for Karp and Tumblr’s silence? Last week Verizon completed its acquisition of Tumblr parent company Yahoo, kicking off the subsequent merger of Yahoo and AOL to create a new company called Oath. As one of the world’s largest ISPs, Verizon is notorious for challenging the principles of net neutrality — it sued the FCC in an effort to overturn net neutrality rules in 2011, and its general counsel Kathy Grillo published a note this April complimenting new FCC chairman Ajit Pai’s plan to weaken telecommunication regulations.

    Now, multiple sources tell The Verge that employees are concerned that Karp has been discouraged from speaking publicly on the issue, and one engineer conveyed that Karp told a group of engineers and engineering directors as much in a weekly meeting that took place shortly after SXSW. “Karp has talked about the net neutrality stuff internally, but won’t commit to supporting it externally anymore,” the engineer said. “[He] assures [us] that he is gonna keep trying to fight for the ability to fight for it publicly.” Karp did not respond to four emails asking for comment, and neither Yahoo nor Tumblr would speak about the matter on the record.


  • Why WordPress’s Parent Doubled Down on Remote Work

    Simply put, Automattic’s remote-working policies are just that popular. At a time when companies like IBM and Hewlett-Packard are calling employees back to the office, Automattic’s success with remote working is striking. The remote-working criticism–that it’s harder to get people to move in the same direction when they’re dispersed–just doesn’t seem to apply at Automattic.

    In fact, says Mullenweg, it’s actually been a big benefit to the company. “I used to be very conflicted,” he told Quartz. “All I hear from my friends in San Francisco is how hard it is to hire. Should I not tell them this secret? I decided it’s a great idea and everyone should do it. I’ll keep shouting from the rooftop because everyone should do it.”


Photo: Korney Violin

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News You Can Use: 8/24/2016


  • Why outsourced call center roles are coming back onshore

    While companies must pay more for onshore call center agents (offshore labor rates are typically 40 to 55 percent of onshore rates), increased automation has helped defray some of the extra expense of local labor. “While companies are ready to pay more for better quality services, increased technology leverage in a traditionally labor-intensive contact center space has offset some of the additional cost,” Bhargava says.

    In addition, companies are increasingly adopting a work-at-home model for agents, which incurs lower operational costs than onshore full-time-equivalents (FTEs). Work-at-home agents are typically 5 to 10 percent cheaper than on-site professionals in the U.S., Bhargava says.


  • What’s Next After Supply Chains?

  • More airline outages as carriers grapple with ageing technology

    The reservations systems of the biggest carriers mostly run on a specialized IBM operating system known as Transaction Processing Facility, or TPF. It was designed in the 1960s to process large numbers of transactions quickly and is still updated by IBM, which did a major rewrite of the operating system about a decade ago.

    A host of special features, ranging from mobile check-ins to seat selection and cabin upgrades, are built on top of the TPF core, or connected to it.

    “They have surrounded that old industry infrastructure with modern technology,” said Bob Edwards, United Continental Holdings’ former chief information officer until 2014. “Those systems have to always reach back into the old core technologies to retrieve a reservation or to figure out who flies between Dallas and New York City.”

    When a power outage shuts off that reservations system – as happened on Monday to Delta Air Lines’ “Deltamatic” system – TPF falls out of sync with the newer technologies that passenger service agents use to assist travellers, Edwards said.


  • Exclusive: Honeywell explores acquisition of JDA Software

    The acquisition would illustrate how Honeywell, a U.S. diversified industrial conglomerate, is keen to boost its automation portfolio after it agreed last month to acquire Intelligrated Inc, a U.S. distribution systems and logistics company, for $1.5 billion.

    JDA Software’s majority owner, buyout firm New Mountain Capital LLC, has already explored a sale of the company to private equity firms, and there is no certainty its latest talks with Honeywell will result in a deal, the people said on Monday.


  • SAP Targets Terrorism With AI

    SAP National Security Services, which describes itself as an independent subsidiary of the German-based software giant that’s operated by U.S. citizens on American soil, works with homeland government agencies to find ways to track potential terrorists across social media.

    “One [use] is the identification of bad actors: People that may be threats to us—people and organizations,” says Mark Testoni, president and CEO of SAP NS2, as the company is known. “Secondarily, once we’ve identified those kinds of players and actors, we can then track their behaviors and organizations.”


Photo: Nico Beard

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News You Can Use: 5/11/2016

sn_sadman_Tom Sodoge

  • Chris Sacca says there’s “a greed case for diversity”

    There’s a very strong business case for diversity that can affect a company’s bottom line. If you have a gender-diverse company, it can result in a 15 percent greater financial performance compared to a company that is not diverse, according to McKinsey. Meanwhile, ethnic and racial diversity at the leadership and board level leads to a 35 percent greater financial performance. In Silicon Valley specifically, the tech-dominant area could gain $25 billion (a 9% increase) in gross domestic product by 2025.


  • Why outsourcing customers are terminating their call center deals

    What’s going on, say Everest’s analysts, is that buyers have greater expectations from their call center providers today. No longer content with simply lower costs, they are looking for vendors that can partner will them to deliver improved business outcomes. They are seeking engagements that incorporate emerging technologies, automation, and big data analytics. And they’re showing the vendors who can’t meet these increased demands the door.


  • How Men’s Changing Friendships Might Reshape The Workplace

    There are lots of reasons why we think friendship and work don’t mix, aside from hyper-competitiveness. First, there’s longevity: gone are the days when, like my grandfather, you spent your entire working life at one company with the same colleagues, until death or retirement, whichever came first. Now our colleagues are unlikely to be around in five or six years.

    There’s also hierarchy to consider. What if you get promoted—or your friends do—and you suddenly aren’t “peers” but supervisors and supervised? And besides, social media can keep us connected to older friends, no matter how far-flung.

    It’s hard to say whether the evolving workplace is changing male friendships or vice versa; probably it’s a mix of the two. But what’s clear is that at the same time that corporate hierarchies are flattening and employee tenures shortening, men are steadily growing closer.


  • Supply Chain Managers Put on High Alert Against “Ransomware”

    Ransomware uses special encryption software to lock up the targeted data, so that it is irrecoverable until the hackers release the key. The malware is typically spread via phishing emails, infected websites and other means (portable media, vendor networks, ‘botnets,’ etc.) – and all it takes is one infected computer to put a company’s entire network at risk.

    Any supply chain is potentially vulnerable, unless it’s completely air-gapped and undiscoverable from a public-facing web server. However, this is unlikely – it is exceedingly difficult to silo networks and data in such a way that malware can’t get through and still be able to manage them easily.


  • Technological Sustentation 90: Open Source

    Open Source brings unique advantages, but it also brings unique risk. Who is going to support the platform day to day? Maintain it and fix the bugs? Add new functionality and integration capability as the organizational platforms change? And how can you be sure someone didn’t sneak something proprietary in there, either on purpose or by accident, and you won’t be accused of IP theft or a license infringement and have to tack legal costs onto the bill (as there is no provider to indemnify you)? All of this is addressable, and controllable, but you need to be aware of all the risks, and have a game plan to mitigate them up front, or getting any open source project approved in an organization that still wants a one vendor platform and “one neck to choke” (that is outside the organization) will be an uphill battle.


  • Why analytics is eating the supply chain

    “It’s about agreeing on forecasts and collaborating on inventory throughout the supply chain,” Myerson said. “It really improves efficiency, cost and quality, and not just for manufacturers.”


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