2010 Readers' Choice: Outsourcing/IT Integration

Simon Ellis, practice director, Supply Chain Strategies at IDC Manufacturing Insights, wasn't surprised by this list of top outsourcing/IT integration partners because these are the companies with the most established capabilities for end users to choose as partners.

CGT: How has the economic downturn impacted initiatives in this area?

Ellis: Outsourcing the supply chain continues to be popular for manufacturers to lower costs. Recent economic conditions have simply heightened the need for companies to better manage their cost structure and shows no signs of slowing.

CGT: What trends will impact outsourcing/IT integration?

Ellis: Outsourcing will clearly continue as it is an effective way to lower overall costs allowing manufacturers to redress the balance of break-fix versus capability building in their IT budgets. Companies will continue to look at their operations for outsourcing opportunities, and they will be challenged to manage combinations of owned and outsourced assets, so a better approach to managing these 'blended' operations is clearly needed. We also see a more collaborative approach to innovation in consumer goods -- much like hi-tech where key outsourcing partners are participants in the innovation process.

CGT: Which business processes are easiest to outsource? Why?

Ellis: The better question is what business processes are most appropriate to outsource. As we have implied, it is critical for companies to define their core competency. Once this is done, identifying areas to outsource becomes strategically straightforward. It is then about ensuring that the outsourcing partner has acceptable capabilities to deliver a quality product or service and the return on investment makes sense. The kinds of areas that we see being outsourced make sense in this context: manufacturing plants, warehousing, transportation, IT help desk. They sit outside the essence of what drives the cadence of consumer goods companies.

Infosys was ranked the 'Most Admired Indian Company' in The Wall Street Journal Asia 200, an annual ranking of Asia's leading companies. The participants of the survey ranked companies on leadership attributes of financial reputation, corporate reputation, quality, innovation and vision. Infosys has received this recognition for 10 years in a row since 2000.
Source: The Wall Street Journal Asia 200 Reader Survey, August 2009

SMB MARKET: IBM

"Our adoption of Vendor Managed Inventory process utilizing IBM's Continuous Replenishment Service has enhanced our relationship with our largest customer, enabling us to effectively reduce overall inventory levels and lead times which are two key priorities with this customer. We have been most impressed with IBM's staff and that IBM continues to be a valued partner throughout the process which contributes to our ongoing success."
-- Dan Kelly, Vice President of Sales, Musco Family Olive Company