https://www.americancityandcounty.com/wp-content/themes/acc_child/assets/images/logo/footer-logo.png
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcast
    • Latest videos
    • Product Guides
  • Resources & Events
    • Back
    • Resources
    • Webinars
    • White Papers
    • IWCE 2022
    • How to Contribute
    • Municipal Cost Index – Archive
    • Equipment Watch Page
    • American City & County Awards
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Statement
    • Terms of Service
American City and County
  • NEWSLETTER
  • Home
  • Co-op Solutions
  • Hybrid Work
  • Commentaries
  • News
  • In-Depth
  • Multimedia
    • Back
    • Podcasts
    • Latest videos
    • Product Guides
  • Resources/Events
    • Back
    • Webinars
    • White Papers/eBooks
    • IWCE 2022
    • How to Contribute
    • American City & County Awards
    • Municipal Cost Index
    • Equipment Watch Page
  • About Us
    • Back
    • About Us
    • Contact Us
    • Advertise
    • Cookie Policy
    • Privacy Stament
    • Terms of Service
  • newsletter
  • Administration
  • Economy & Finance
  • Procurement
  • Public Safety
  • Public Works & Utilities
  • Smart Cities & Technology
  • Magazine
acc.com

Smart Cities & Technology


Outsourcing Study Connects Enterprise Software and Success

Outsourcing Study Connects Enterprise Software and Success

Organizations that outsource business processes, such as HR or Finance and Accounting, fully realize the inextricable, critical role information technology
  • Written by American City & County Administrator
  • 16th April 2007

Organizations that outsource business processes, such as HR or Finance and Accounting, fully realize the inextricable, critical role information technology (IT) and enterprise software applications play in their outsourcing success, according to the results of a just-released market assessment by EquaTerra. The market assessment also found that business process outsourcing (BPO) buyers cite the IT capabilities of external service providers as vital to BPO success, and that buyers have a strong proclivity for leveraging the applications from enterprise software vendors that possess a clear BPO vision.

Respondents to EquaTerra’s 2007 edition of the Role of Enterprise Software Applications in BPO market assessment study were BPO decision makers in 154 North American and European organizations, each with more than 5,000 employees and greater than $1 billion in annual revenue. All major industry groups were represented in the responses. This is the second year this annual market assessment has been conducted by EquaTerra.

Said Stan Lepeak, EquaTerra’s Managing Director of Research and study author, “Study respondents ranked IT at 4.2 on a scale of one to five as being key to BPO success. This clearly demonstrates that BPO buyers fully recognize what EquaTerra has advocated since its inception…that IT and BPO cannot and do not operate as islands. Further underscoring buyers’ understanding of this fact is the overwhelming number of study respondents who noted the IT solutions and capabilities offered by BPO service providers are also key to BPO success.”

Comparing North American to European Responses

While there was consensus among study respondents on the importance of IT and enterprise software applications to BPO success, there were some variations among responses from North America and Europe. For example:

–The majority of European and North American respondents agreed that SAP and Oracle were the leading enterprise software vendors when it came to possessing a clear BPO value proposition. This was also the case in the 2006 study findings
–When asked why they preferred the enterprise software vendor specified, 50 percent of those in North America and 62 percent of Europeans cited that the particular vendor’s software is part of their prescribed corporate IT strategy, and 41 percent of North Americans and 38 percent of those in Europe noted that the particular vendor’s software is already used. This highlights buyers’ preference for leveraging existing enterprise software investments in their BPO efforts
–On whether the client or the service provider should hold the enterprise software license, 41 percent of Europeans and 36 percent of North Americans preferred the BPO service provider hold the license as part of its BPO offering. 67 percent of those in both regions stated this preference was driven by the desire for “one-stop-shopping” with the BPO service provider
–When questioned on how important outsourcing management and governance was to the success of an outsourcing initiative, North Americans gave it a ranking of 4.04 on a scale of one to five, and Europeans ranked it at 4.57.

Lepeak concluded, “Given the importance of IT, organizations engaged in or pursuing BPO must ensure they have the skills and take the time to adequately assess their IT options when it comes to BPO. This involves understanding both the capabilities of their existing enterprise software environment in supporting BPO efforts and the technical capabilities of their strategic IT vendors. Buyers must also assess and understand candidate BPO providers’ IT application system capabilities as well as their individual ability to support the buyer’s strategic IT vendor platform and systems. Embedding IT requirements, needs, capabilities and key representatives from the IT group into BPO teams from the start will improve the likelihood of success. And finally, organizations undertaking BPO must strive to leverage existing investments and technologies not only from a cost standpoint but also to maintain comfort levels and familiarity with IT applications and systems used in the past.”

For a copy of the full study, send an e-mail to: [email protected]

To access a replay of a recent webcast covering study highlights, click here and use erp as the password.

Tags: ar mag Smart Cities & Technology

Most Recent


  • cybersecurity
    How state and local CIOs can prioritize security, cloud and legacy systems
    NASCIO recently released the annual State CIO Top Ten Policy and Technology Priorities for 2023—and cybersecurity and risk management, legacy modernization and cloud services rank near the top. With rising cybersecurity concerns, a growing emphasis on upgrading legacy systems, and a desire for more flexible, cloud-based technology, CIOs are focused on solutions that efficiently and […]
  • cloud services
    Cloud services: A cloudy forecast for state and local governments
    Cloud services continues to grow exponentially making it flourish into a multi-billion-dollar industry. According to a survey by Synergy Research Group, the global cloud infrastructure services market grew by 35 percent in 2020, with the top five cloud providers (Amazon Web Services, Microsoft, Google, Alibaba and IBM) capturing more than 70 percent of the market […]
  • cyber threats
    Four ways to protect resident data in the era of digital-first government
    Bad actors and cyber extortionists are continually staging attacks on public sector properties, making enterprise-grade security essential for every local government website. From small villages to counties with millions of residents, hackers increasingly target public sector websites with cyber threats like malware, ransomware, trojans and viruses. Even a relatively minor breach or infection can lead […]
  • wildfire
    Report: Technology can aid wildfire response that's 'stuck in the last century'
    With each passing season, the growing threat of wildfire and its impact on life safety, property, and the economy is underscored by dramatic fire events that ecologically alter entire regions, uproot communities and cost taxpayers billions of dollars. Last year, 68,988 wildfires burned 7.6 million acres of American land. And as of the end of […]

Leave a comment Cancel reply

-or-

Log in with your American City and County account

Alternatively, post a comment by completing the form below:

Your email address will not be published. Required fields are marked *

Related Content

  • North Texas alliance partners with Marketplace.city on smart government solutions
  • Harris County deploys next-generation security in 150 public buildings
  • Prioritizing rapid restore leads to stronger ransomware attack recovery
  • Today’s infrastructure needs greater than roads and bridges - It’s time to face our digital connectiveness

White papers


Digital Government Service Delivery – A Guide for Buyers

23rd February 2023

Modernizing government services for today’s resident expectations

24th January 2023

Preparing Your Community Now for the Next Generation of Older Adults

18th October 2022
view all

Webinars


Future-proof Your State and Local Government Finance: 5 Key Trends for 2023

6th February 2023

How To: Evaluate Digital Government Service Delivery Technologies

23rd January 2023

Using Technology to Enhance Communications

29th November 2022
view all

PODCAST


Young Leaders Episode 4 – Cyril Jefferson – City Councilman, High Point, North Carolina

13th October 2020

Young Leaders Episode 3 – Shannon Hardin – City Council President, Columbus, Ohio

27th July 2020

Young Leaders Episode 2 – Christian Williams – Development Services Planner, Goodyear, Ariz.

1st July 2020
view all

GALLERIES


Gallery: America’s top 10 bicycle-friendly cities

20th March 2023

Gallery: Top 10 hardest working American cities

8th March 2023

Gallery: Top 10 least expensive American metro areas

24th February 2023
view all

Twitter


AmerCityCounty

Report: Renters living at or below the poverty line face a ‘severe shortage of housing’ dlvr.it/SlR6rb

24th March 2023
AmerCityCounty

Report: Technology is encouraging unprecedented collaboration in local government organizations dlvr.it/SlNYqx

23rd March 2023
AmerCityCounty

Metal buildings can be a lifesaver for local governments needing to expand dlvr.it/SlMCV1

23rd March 2023
AmerCityCounty

Transportation department to invest $94M into projects promoting innovation, safety dlvr.it/SlKRf7

22nd March 2023
AmerCityCounty

How state and local CIOs can prioritize security, cloud and legacy systems dlvr.it/SlK7H1

22nd March 2023
AmerCityCounty

Addressing the housing crises requires creativity, collaboration dlvr.it/SlGTFz

21st March 2023
AmerCityCounty

St. Louis Communities Boost Great Energy Savings dlvr.it/SlFyV0

21st March 2023
AmerCityCounty

How Can Public Sector Best Tackle Their Unique Storage Needs? dlvr.it/SlFxXk

21st March 2023

Newsletters

Sign up for American City & County’s newsletters to receive regular news and information updates about local governments.

Resale Insights Dashboard

The Resale Insights Dashboard provides model-level data for the entire used equipment market to help you save time and money.

Municipal Cost Index

Updated monthly since 1978, our exclusive Municipal Cost Index shows the effects of inflation on the cost of providing municipal services

Media Kit and Advertising

Want to reach our digital audience? Learn more here.

DISCOVER MORE FROM INFORMA TECH

  • IWCE’s Urgent Communications
  • IWCE Expo

WORKING WITH US

  • About Us
  • Contact Us

FOLLOW American City and County ON SOCIAL

  • Privacy
  • CCPA: “Do Not Sell My Data”
  • Cookie Policy
  • Terms
Copyright © 2023 Informa PLC. Informa PLC is registered in England and Wales with company number 8860726 whose registered and Head office is 5 Howick Place, London, SW1P 1WG.