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Why buy when you can rent In a 1995 interview Peter Drucker predicted in 10 to 15 years organizations may be outsourcing all work that is support rather than revenue producing and all activities that do not offer career opportunities into senior management Just about everybody from entrepreneurs in the small and home office segment to small and medium enterprises to large businesses with diversified interests and varied business processes benefit form outsourcing Every business benefits hugely through outsourcing because technology is changing so fast it has to be leveraged and used to the maximum to deliver a competitive advantage to a company Pat Wallington VP of Information Systems at Xerox said I view outsourcing as part of the transformation strategy Experts believe that outsourcing is essential for companies to prosper into the 21st century Starting in the days of mainframes such organizations built their reputations on upscale IT handholding that could and did take over entire data centers including staff For example in the early 1990s IBM Corp built a data processing facility in Rochester New York that consolidated five Eastman Kodak Co facilities but was owned and operated by IBM Estimated savings through the 1990s 1 billion Now outsourcing is taking a new turn toward specific applications for the middle market instead of the big-ticket end-to-end IT operation model In the last 24 months as the Y2K-driven market for enterprise-resource-planning ERP software sagged vendors and a variety of new application service providers ASPs scrambled to partner in outsourcing as a way for ERP to expand down-market Their reasoning make the software more appealing to mid-sized companies by letting them rent instead of buying installing customizing and maintaining applications themselves Dont think that outsourcing solutions are limited to new ERP projects For example three months after implementation a SAP R3 system was outsourced at Sebastian International Inc Woodland Hills California Confronted by unacceptable
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