BPO MANAGEMENT Two Giants Take the Offshore UPO Lead GE Capital’s International Services unit, which provides everything from risk calculation to IT services and actuarial analysis for GE worldwide, has grown from 634 employees to 17,000 during the past five years. More than half of those workers are in India, and they are not being used for mindless data entry—in India every employee has a college degree, and more than 1,200 have Master’s degrees in Business Administration (MBAs). AT&T Uses Team Approach to Outsource Its HR Function When AT&T opted to outsource human resources, the telecommunications company signed a seven-year comprehensive outsourcing agreement with Aon Consulting. A team of functional experts in AT&T’s human resource (HR) and finance departments orchestrated the outsourcing initiative. Each department challenged the other to prove the merits of the outsourcing strategy, resulting in a well-thought-out, appropriate, and cost-effective out- sourcing initiative GE Real Estate Understands Total BPO Costs Realizing cost savings from offshore outsourcing often takes years of effort and a huge up-front investment. For many companies, it simply may not be worth it. “Someone working for $10,000 a year in Hyderabad can end up costing an American company four to eight times that amount,” says Hank Zupnick, CIO of GE Real Estate. Yet, all too often, companies do not make the outlays required to make offshore outsourcing work. Informal Vendor Selection Leads to Disaster A large and well-respected company had a vision in the early 1990s of becoming one of the leanest and most profitable manufacturers in the industry. The company’s CFO felt that the company could be much more efficient if it focused on what it was good at, as opposed to managing some of the larger support functions. After looking into its HR organization, the CFO determined that outsourcing this function would reduce a great deal of overhead and could fix several of the problems the company continually faced. European Regulations Confusing to BPO Vendors International regulations governing workers’ rights are going to play a role in the future of BPO. In fact, it is likely that workers and politicians will seek new regulations as more and more jobs are uprooted and moved about world. NYPH Managing tile BPO Transition: Four Years Later ( MR.L) In November 1999, New York-Presbyterian Hospital (NYPH) announced a seven-year, $228-million IT outsourcing contract with First Consulting Group (FCG). The contract created a third entity, FCG Management Services, to perform the work—a step that included the hiring of more than 400 NYPH staff into the new unit.

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BPO MANAGEMENT

Two Giants Take the Offshore UPO Lead

GE Capital’s International Services unit, which provides everything from risk calculation to IT services and actuarial analysis for GE worldwide, has grown from 634 employees to 17,000 during the past five years. More than half of those workers are in India, and they are not being used for mindless data entry—in India every employee has a college degree, and more than 1,200 have Master’s degrees in Business Administration (MBAs).

AT&T Uses Team Approach to Outsource Its HR Function

When AT&T opted to outsource human resources, the telecommunications company signed a seven-year comprehensive outsourcing agreement with Aon Consulting. A team of functional experts in AT&T’s human resource (HR) and finance departments orchestrated the outsourcing initiative. Each department challenged the other to prove the merits of the outsourcing strategy, resulting in a well-thought-out, appropriate, and cost-effective out- sourcing initiative

GE Real Estate Understands Total BPO Costs

Realizing cost savings from offshore outsourcing often takes years of effort and a huge up-front investment. For many companies, it simply may not be worth it. “Someone working for $10,000 a year in Hyderabad can end up costing an American company four to eight times that amount,” says Hank Zupnick, CIO of GE Real Estate. Yet, all too often, companies do not make the outlays required to make offshore outsourcing work.

Informal Vendor Selection Leads to Disaster

A large and well-respected company had a vision in the early 1990s of becoming one of the leanest and most profitable manufacturers in the industry. The company’s CFO felt that the company could be much more efficient if it focused on what it was good at, as opposed to managing some of the larger support functions. After looking into its HR organization, the CFO determined that outsourcing this function would reduce a great deal of overhead and could fix several of the problems the company continually faced.

European Regulations Confusing to BPO Vendors

International regulations governing workers’ rights are going to play a role in the future of BPO. In fact, it is likely that workers and politicians will seek new regulations as more and more jobs are uprooted and moved about world.

NYPH Managing tile BPO Transition: Four Years Later ( MR.L)

In November 1999, New York-Presbyterian Hospital (NYPH) announced a seven-year, $228-million IT outsourcing contract with First Consulting Group (FCG). The contract created a third entity, FCG Management Services, to perform the work—a step that included the hiring of more than 400 NYPH staff into the new unit.