BRIAN
ELLIS, CHAIRMAN OF THE INTERCHANGE
GROUP, LOOKS AT WHY OUTSOURCING
COULD BE THE ANSWER AS THE RECESSION
BEGINS TO BITE
Given
the events of recent weeks, not a
day goes by without hearing more bad
news about the economy and world recession.
Only
time will tell how bad it becomes
but many organisations large
and small have already wielded the
axe on employees and projects. The
alarm bells are ringing loud and clear
and many businesses are taking a long,
hard look at their processes and systems.
Many
businesses are already feeling the
pinch through additional pressure
on margins and costs.
Inevitably,
investment in IT infrastructure and
business processes are often among
the first casualties of any cutbacks.
After all, when times are becoming
tough, who in their right mind would
speculatively invest further in a
new IT project.
The
truth however, is that a newly-efficient
and streamlined system might be exactly
what the business needs to enable
it to survive against its competitors
and deliver a much better service
to its customers.
But
if you cant afford the investment,
what is the alternative?
Outsourcing
is increasingly the secret of success
for many smart com-panies. It allows
them to focus on the core elements
of their business sticking to their
knitting while saving both money and
precious resources.
In
many cases it also means their customers
get a better service from dedicated
experts who know exactly what they
want, rather than an organisation
trying to be all things to all people.
At
Interchange, we have 25 years experience
in providing IT services and business
processes and a reputation second
to none for enabling good customer
service.
The
Post Office, Samsung, Carpetright
and Dennis Publishing are among the
top names who have taken advantage
of our managed services to ensure
their customers get the service they
deserve.
Outsourcing
means businesses know exactly what
their spend is on a particular project,
unlike in-house IT depart-ments which
are often seen as a bottomless pit
of money and resources.
No-one
can do without IT, yet recognising
a return on in-house investment is
notoriously difficult to do. How many
CEOs can really say that the implementation
of a new piece of equipment or the
addition of three new IT staff added
zeros to their end of year figures?
Were
certainly not saying dont spend money
on IT, but we are saying think seriously
before you invest and think about
the business benefits because the
chances are, you could do better.
And
at a time when money belts are being
tightened, it makes sound business
sense to consider outsourcing as a
way of cutting internal costs, while
ensuring service is still top of the
agenda.
With
over 100 dedicated technical and support
staff, we offer a wide range of managed
services, from the outsourcing of
an entire IT infrastructure to looking
after a small part of it, such as
networking, or handling on-site IT
maintenance.
Were
not pretending that outsourcing IT
will be the answer to everything:
yes, it will save
Its
costs, save time, save manpower and
be much more effective, but it also
mustnt be treated in isolation. IT
outsourcing has to be considered with
the whole business process involved.
Too
many companies spend hundreds of thousands
of pounds on outsourced IT systems
that dont complement their top level
objectives. Any investment in IT should
be seen as part of the bigger picture
of what a company is trying to achieve
and it is our expertise in CRM that
allows us to ensure this is achieved.
We
help organisations take a long hard
look at all the various tasks and
business processes which can be outsourced
and provide solutions that can deliver
results more effectively and efficiently.
For
example, your average customer doesnt
care about the computer system which
delivers their service, but they do
care that their needs and wants are
correctly managed, so if someone can
do the job cheaper and more efficiently
than your in-house department, it
makes sense to hand it over.
Because
we combine decades of IT knowledge
with customer care experience, we
have the ability to step back from
the straightforward IT requirements
and look at the wider outsourcing
actions which can deliver the best
results for customers.
Our
specialised skills and the technology
at our fingertips enable us to handle
other areas of outsourced operations,
such as warranty management, after
sales service, 24-hour customer care
lines, management of customer databases,
handling of report processes and feedback,
technical expertise, and managed workshop
repair services.
In
doing so, we take real ownership of
problems and provide seamless solutions,
while at the same time taking away
the headache of in-house man-agement,
recruitment and investment.
Outsourcing
may not be the answer to all your
problems as the recession bites, but
it is worth considering. Solid results,
satisfied customers and a saving on
time, money and resources outsourced
doesnt mean youll be out of pocket
Flexibility
- the
key to our success
B
Y P H I L L I P J O N
E S ,
M
A N A G I N G D I R E C T O
R
Successful
managed services solutions are ones
that can be tailored and adapted across
a wide range of industries.
The core of the activity
will always be the same delivering
the best possible service to the customer
but the way in which it is achieved
will vary greatly from business to
business.
At Interchange, our huge
range of IT expertise accrued over
the last 25 years means we have an
excellent pedigree spread across many
areas of industry.
From retail to publishing,
IT services to manufacturing, hi-tech
electronics to business equipment,
we have provided managed services
both in the UK and worldwide.
The secret is flexibility,
taking time out to understand what
the customer wants and looking at
how it can best be delivered.
Very often businesses
know what needs to be done, they simply
dont have the time, resources or expertise
to achieve it. We do, and our track
record proves that we get it right
time after time.
Carpetright
True
partnership has been the key to success
for Carpetright and Interchange.
Heavily
reliant on IT to maintain its position
as the UKs largest carpet and floor
covering retailer, Carpetright depends
on close, innovative relationships
with its suppliers.
The
speed of information flow is critical
to its success in a cut-throat business
and Interchange took a leading role
in evaluating, supplying, installing
and supporting Carpetrights IT operations
acting as prime contractor and co-ordinating
all third party suppliers.
With
some 300 stores in need of a technology
overhaul, Interchange successfully
established a hardware platform for
store applications and handled all
the hardware procurement, installation
and integration, on-site cabling and
ongoing support and maintenance for
hardware and software a totally
outsourced maintenance solution.
Carpetrights
disparate systems have been integrated
to share information and deliver better
services to both staff and customers.
BENEFITS
HAVE INCLUDED:
cost savings
faster identification of problems
quicker resolution and better exploitation
of information technology
Post
Office
One
of the best-known names among Interchanges
blue chip client list is the Post
Office, now called Consignia, the
largest user of information technology
in the UK.
It
turned to Interchange when it wanted
to review how to provide the best
service for the in-house repair of
all its transportable IT equipment,
such as scanning and communications
devices.
The
challenge was to save money by streamlining
the processes and ensure a smooth
transition from a raft of different
historical suppliers to a single source
of service.
The
solution was a partnership in which
the Post Office provided the premises,
at Matlock, and Interchange provided
the technical expertise, manpower
and management, all within an incredibly
tight seven week timescale.
The
project has been so successful that
savings of around half a million pounds
were chalked up in the first three
years and better quality repairs have
led to product improve-ments and longer
product lifetimes.
Elsewhere
within the Post Office, Interchange
has also been involved in a number
of other managed services projects,
earning itself a regular accolade
as a First Class Supplier in the IT
Services section of its annual awards.
Kevin
Bolger, First Class Supplier Process
Manager at the Post Office, summed
up Interchanges commitment to managed
services when he said: “Interchange
has consistently delivered a first
class service which we are only too
pleased to recognise with our award.”
As
part of one of the worlds largest
electronics companies, when Samsung
Electronics UK decided to outsource
its warranty administration and technical
support for computer monitors, it
needed a company that could deliver
top level results.
Interchanges
response was a dedicated solution
which includes on-site repair where
possible, the supply of loan units,
development of fully equipped workshops
of its own at Newport Pagnell to cope
with more complicated repairs, plus
the provision of a customer technical
helpline to ensure the best in customer
care.
Its
staff have in depth knowledge of Samsung
products and there has been an overall
improvement in product performance
through higher quality repair and
maintenance - ensuring savings in
the future.
And,
for the first time, improvements in
database management have enabled Samsung
to access customer information to
help with its future product planning.
Summing
up, Peter Downes, National Service
Manager for Samsung Electronic UK,
said: “Interchange has provided a
first class, customer-focused service
solution.”
Phil
Taylor, Commercial Director, Dahle
UK
“The serviced managed approach meant
that we have taken a grip on IT”
DAHLE
When
Dahle UK, part of an inter-national business equipment
manufacturing group based in Germany, realised that
its lack of internal specialist IT expertise was affecting
its ability to win new business and hit customer service
levels, it knew it had to take urgent action.
As
a medium-sized operation it could not financially justify
a separate IT department in-house, so it looked at managed
service outsourcing as the solution.
Already
familiar with Interchange because of previous work the
companies had been doing together, it handed over to
Interchange full responsibility for the IT operation.
The
project included provision of in-house IT specialists
two days a week to handle functions such as
network
administration and equipment maintenance as well as
advice on IT infrastructure.
Today,
Dahle UKs senior management can now focus on their key
roles, instead of worrying about IT issues, and the
benefit to the bottom line has been demonstrated in
increased customer service levels.
Phil
Taylor, Dahle UK Commercial Director, says: “The serviced
managed approach has meant that we have taken a grip
on IT - we’re running it now and using IT proactively
to gain real commercial advantage.
We
have moved from an IT culture of conflict, where day-to-day
problems limited our customer service and drained management
resources, to one of harmony where we use IT as a genuine
tool for increased efficiency and growth.”
Free
for all
At
Interchange, our business managers
have extensive experience in all areas
of business. Our mission is to share
that experience with you so your business
and your customers can benefit. Remember,
our expertise is just a phone call
away....
Here,
Barry Fairburn looks at Freeware.
Whats it all about and should businesses
be using it?
The
roots of freeware go back a number
of years, but it is only in the last
decade, most notably since the arrival
of Linux, that the phenomenon has
really taken off. Of course, that
means serious implications for the
future of software development and
commercial licensing.
So
what is it? Freeware is exactly what
it says it is free software. It comes
in two distinct types, some freeware
simply allows users to use the software
while the other allows you to examine
and alter the source code.
The
difference is the GPL or GNU General
Public Licence, a document which enshrines
the terms and conditions under which
much current freeware is distributed.
It was set up as part of the GNU project.
Essentially
it enables an author to retain copyright
of a work, but allows free distribution
and modification provided that source
continues to be made available and
any changes are documented. This is
so the original authors do not get
blamed for any subsequent code problems.
It
does not mean that people cannot charge
for the process of distribution, or
other services such as integration,
but it does prevent the charging of
licence fees.
CUSTOMER
CARE
Interchange
is finding that more and more customers
are looking for total managed services
solutions as part of their CRM strategy.
With
its own call centre that specialises
in providing call handing for service
delivery situations, Interchange offers
a simple, efficient alternative to
managing systems in-house.
By
using the serviced call centre, companies
are able to avoid the expense of implementing
their own service managed solution
and can take advantage of the range
of hosted services available.
Outsourcing
a call centre facility to Interchange
means using the latest telecoms technology,
allowing vital customer data to be
recorded and accessed simply and easily
for operational purposes.
As
well as help centre services, Interchange
also offers outsourcing for service
delivery areas such as warranty support
and workshop repair...
The
GNU project was set up to create a
free version of Unix by writing everything
from scratch as freeware. What many
people think of as Linux is, in fact,
a collection of lots of freeware,
most of it GNU.
Torvalds
The
freeware that accompanies or comprises
Linux, includes utilities, compilers
etc., along with a kernel written
by Linus Torvalds. Packaged together
in this way, it is referred to as
a distribution of Linux.
Some
of the most important software on
the Internet is freeware. The Apache
web server is independently produced,
as is the X-server software for Linux,
and so on.
Freeware
is typically written by enthusiasts
around the world, often via the Internet.
What is clear though, is that the
output is usually very high quality,
timely, and a more effective software
generation methodology than traditional
commercial techniques.
One
of the big questions is whether freeware
is safe to use commercially. Many
companies do rely on freeware, for
example, buried in the heart of the
current Oracle 11ie-Business Suite
is a copy of the Apache web server.
Around
75% of all web servers on the Internet
are Apache and many are hosted on
Linux. At Interchange, we use a great
deal of freeware: our email systems
are based on Berkeleys sendmail, our
firewall is built from Linux and our
network management system is also
freeware.
There
is actually more freeware in most
organisations than people realise
and, of course, network managers the
world over dont need capital authorisation
to use freeware!
It
is the reliability and stability of
free-ware that is driving many organisations
to use it in e-commerce applications
and with the advent of the latest
main-frame and highly scalable versions
of Linux, this reach is likely to
spread into more traditional commercial
areas.
Because
freeware is vendor neutral, anyone
can support it. Youre not tied into
a specific company and, generally
speaking, bugs are found through peer
pressure and posted on the Internet
with incredible speed.
There
is also tremendous power in the ability
to self-customise your freeware environment
to meet your own exact requirements.
Now,
major companies such as IBM and HP
are moving into providing support
and service for freeware, as their
margins on commodity IT hardware decrease.
Viable
freeware is undoubtedly changing the
face of the market and, as it becomes
more commercially acceptable, an increased
take-up is inevitable. Helping our
customers turn it to their advantage
will be the secret of our success.
For
further information about Interchange
Group or any of its Solutions or Services,
please contact us at:
Interchange
Group Garden Court,
Lockington Hall, Lockington,
Nr Derby. DE74 2SJ
Its
costs, save time, save manpower and
be much more effective, but it also
mustnt be treated in isolation. IT
outsourcing has to be considered with
the whole business process involved.
Flexibility
- 
Here,
Barry Fairburn looks at Freeware.
Whats it all about and should businesses
be using it?
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2001 - 2008 Interchange Group Limited - All Rights Reserved
