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Do not outsource everything

Jack Loo | May 20, 2008
Words of sound advice from the man leading EDS Asia.

Vital IT areas of an organisation like architecture and strategy should remain inhouse and not be outsourced to vendors, according to Kerry Purcell, Vice President and Managing Director of IT services provider EDS Asia.

Purcell was speaking at a panel discussion on the relationships between companies and their outsourcing vendors moderated by Don Tennant, Vice President and Editorial Director, Computerworld and Infoworld

These three areas are an intrinsic part of an organisation. Our business model as a supplier is to advise customers not to do that, explained Purcell.

According to Purcell, EDS personnel always tell its customers to see how they themselves are growing and decide carefully what aspects of their business to outsource, he added.

Today, the outsourcing model has evolved into one called multisourcing, Purcell pointed out. This is to take advantage of the local expertise from the different regions that companies are expanding into. From a suppliers point of view, geographical distribution of partners is important, he added.

Previously, there had not been enough work done in the localisation of IT services, but increasingly more companies are now looking to leverage offshore services from countries like India, China and Malaysia.

Also important in a customer-outsourcing partnership is the area of maintaining compliance, said Purcell. It is critical to provide transparency and standards from an outsourcing company, he added.

Purcell also took time to talk about HPs acquisition of EDS. When questioned by Tennant on more details about the takeover, Purcell replied that EDS is still focused on serving its customers. This is what we have been reiterating to our partners and employees the past few weeks.

Keeping IT Real

No surprise: vendors and customers need to work closely together.

Also speaking the CIO Perspectives panel discussion on Day 2, Joseph Alhadeff, Chief Privacy Officer, Oracle Corp., delved into the hard, honest and invariably complex truths of enterprise IT in the private and public sectors. Here are a few of the many insights he shared with his fellow panelists and the audience.

Ensure Your Customers Get It

The acquisition needs to make sense for the customer at large. The acquisition is beneficial to the acquiring company when the customers of the acquired company also remain happy and remain customers So clearly that has to be foremost in mind when looking at the acquisition. You also want to be making sure that you are creating a greater whole for both sets of customers. Both your existing customers as well as your new customers. And that the service offerings are beneficial to the greater good of all your customers. And the last thing you want to look at iswhich is exactly what you were talking aboutthe ability to provide information to your customers, so they understand and they can factor in the process as its going on, understand how the process as its going on is working, where the benefits are, give assurances of the product continuity, and the service continuity.


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