The report relies heavily on the conceptual framework of a U.S economy in a balance sheet recession.
RadioShack Corp. today announced the appointment of Dorvin D.
WASHINGTON, DC-So it happened. Within hours of an apparent default, Congress came together and delivered a bill that would raise the debt ceiling and work towards reducing spending.
A philosophical discussion in the outsourcing industry. Is outsourcing a good thing? Will the 30 year trend toward outsourcing and globalization continue? In the July 30, 2011 issue of The Economist, a column explores these topics. Although the author appears to confuse off-shoring with outsourcing, they makes a valid point. Outsourcing can go well, it can go wrong and it needs to be executed properly.
Some companies, such as Boeing, are bringing more work back in-house, in the jargon. But the business logic behind outsourcing remains compelling, so long as it is done right. Many tasks are peripheral to a firm’s core business and can be done better and more cheaply by specialists. Cleaning is an obvious example; many back-office jobs also fit the bill. Outsourcing firms offer labour arbitrage, using cheap Indians to enter data rather than expensive Swedes. They can offer economies of scale, too. TPI points out that, for all the problems in America, outsourcing is continuing to grow in emerging markets and, more surprisingly, in Europe, where Germany and France are late converts to the idea.
Companies are rethinking outsourcing, rather than jettisoning it. They are dumping huge long-term deals in favour of smaller, less rigid ones. The annualised value of “mega-relationships” worth $100m or more a year fell by 62% this year compared with last. Companies are forming relationships with several outsourcers, rather than putting all their eggs in few baskets. They are signing shorter contracts, too. But still, they need to think harder about what is their core business, and what is peripheral. And above all, newspaper editors need to say no to the temptation to outsource business columns to cheaper, hungrier writers.
The following is from today's GlobeSt.com article regarding the new HSBC outsourcing contract. Robert Carr of GlobeSt was interested in discussing trends in Outsourcing.
Bryan Jacobs with JLL tells GlobeSt.com that the bidding process started last summer. “It’s been a significant amount of work for all sides,” he says. “We’re going to specifically evaluate HSBC’s portfolio to see how they can best serve their customers. We’ll also be looking at productivity, and how they can be more efficient with space.”
He says that providing corporate commercial real estate outsourcing services has been picking up considerably since the recent downturn. “When we went into the recession, a lot of people sat on the fence, concerned about long-term decisions. In the past year, companies have begun to think about what they’re going to be doing over the next five to 10 years, and there’s been significant requests for proposal work,” Jacobs says.
See More on: www.globest.com
The Sourcing Interest Group is one the leading organization in world for the Sourcing and Outsourcing Industry. Expense Management Solutions is a global leader in sourcing and outsourcing advisory. The following is a recent article on vendor management.
How To Build A World Class Vendor Management Organization
Michele Flynn, President, Expense Management Solutions
This summer, the driving topic for many organizations seems to be “how to build a world class vendor management organization” – as we all know – it is often much easier to manage “one” thing at a time. In reality, in order to be effective in managing vendors across your enterprise, you need to be able to manage multiple vendors, all the time. Your first reaction may well be – that’s impossible. While I will not be able to address every issue that will come up, this article is intended to lay out a roadmap that will help you to get started if you are at the early stages, validate and potentially expand the breadth of your program if you are in development and perhaps even give you some things to consider if you are at the more advanced stage of implementation.
In a nutshell, effective governance or vendor management – on a one-off basis – is all about how to ensure that the value you achieve with your vendor equals or exceeds all that you expected when you initiated the relationship. (If you would like to hear more about how to implement good vendor management on a point to point basis, click here to listen to a 60 minute webinar I presented in May.) A world class vendor management organization takes vendor management to the next level. Why do you need to worry about building a vendor management organization (VMO)? For years most of us have addressed “vendor management” in one of three ways. Either we relied upon the business owners who are buying the services to ensure that the vendor performed as required, we focused our energies on the top strategic relationships, or we relied upon the contract to cover the critical issues and assumed the rest would be resolved through periodic sourcing initiatives. So why are more and more people thinking that the time has come to implement a Vendor Management Organization? As we work with our clients, we find there are three common drivers:
- Increasing complexity of relationships,
- Increasing pressure from regulators, consumers and customers, and
- A phenomenal increase in the volume of activity that is done outside the four walls of organizations.
see more on: via www.sig.org
UGL, which is being advised by Goldman Sachs in Australia, is threatening an attempt by DTZ's majority shareholder Saint George Participations (SGP) to take the business private and merge it with BNP Paribas Real Estate.
DTZ confirmed last month that it "continues to review approaches of interest in the company's shares" alongside the SGP talks.
However, a source close to the negotiations said UGL and other potential rival bidders are being frustrated by SGP, which owns 55pc of DTZ. They allege that SGP is blocking the property agent from entering into detailed discussions with other parties and providing access to the data room.
SGP, a family-run French group, has three directors on the board on the UK property company.
DTZ shares closed at 44½p on Friday, valuing the company at £120m.
CHICAGO-Jones Lang LaSalle had a strong second quarter, according to executives reporting Q2 results on a conference call Wednesday. Revenue rose 24% to $845 million compared to second quarter 2010, and net income rose to $44 million compared with $32 million a year ago.
CHICAGO, July 28, 2011 /PRNewswire/ — Jones Lang LaSalle announced today that HSBC is renewing its five-year, integrated real estate services contract with the firm for its eight-million-square-foot portfolio in the United States and is expanding the geographic scope to include an additional two-million-square-foot portfolio in Canada. Jones Lang LaSalle has received a letter of intent from HSBC and full contract execution is expected in the following weeks. This expanded relationship continues to support HSBC's strategy of creating capacity for smart growth through the reduction of costs by standardizing processes and leveraging its global scale.
Jones Lang LaSalle has been a real estate advisor to HSBC in North America since 1998, and also manages part of HSBC's retail bank locations and office portfolios in Latin America. HSBC also appointed Jones Lang LaSalle as one of two strategic regional transaction partners and the firm will also serve its Asia Pacific and MENA regions.
Jones Lang LaSalle has formed an integrated team of experts, led by Ed Cannon, Bryan Jacobs, John Minks and Bill Thummel, to serve the expanded account responsibilities in the Americas for HSBC.