o Streamline government operations to guarantee rapid response to citizen
needs."
E-Government Strategy activities are centered on four citizen-centered
groups, including:
o Individuals/Citizens: Government-to-Citizens (G2C);
o Businesses: Government-to-Business (G2B);
o Intergovernmental: Government-to-Government (G2G);
o Intra-governmental: Internal Efficiency and Effectiveness (IEE);
Through the E-Government Strategy, Government agencies are currently faced
with pressure to upgrade technology capabilities and to better interface with
their audiences. Combined with the A-76 initiative that directs Government
agencies to pursue the most cost-effective method of doing business, current
federal strategy now enforces government's need to better understand public
alternatives, submit to extensive requests for proposals to an array of
government and non-government providers, and to perform complex evaluations of
existing operations and functions. These initiatives will continue to drive
government usage of outside sources.
OUTSOURCING TREND
In response to the current economic situation, growing competitive pressures
and technological innovations, we believe many companies, both large and small,
are focusing their critical resources on the core competencies of their business
and utilizing business process outsourcing to accelerate their business plans in
a cost-effective manner and perform non-core business functions. Outsourcing
provides many key benefits, including the ability to:
o Capitalize on skills, expertise and technology infrastructure that would
otherwise be unavailable or expensive given the scale of the business;
o Reduce capital and personnel investments and convert fixed investments
to variable costs;
o Increase flexibility to meet changing business conditions and demand for
products and services;
o Enhance customer satisfaction and gain competitive advantage;
o Improve operating performance and efficiency; and
o Enter new business markets or geographic areas rapidly.
As a result, the market for business process outsourcing services continues
to grow. IDC predicts that worldwide logistics business process outsourcing
trends will continue to evolve and grow to reach $308.7 billion in 2006.
Typically, outsourcing service providers are focused on a single function,
such as information technology, call center management, credit card processing,
warehousing or package delivery. This focus creates several challenges for
companies looking to outsource more than one of these functions, including the
need to manage multiple outsourcing service providers, to share information with
service providers and to integrate that information into their internal systems.
Additionally, the delivery of these multiple services must be transparent to the
customer and enable the client to maintain brand recognition and customer
loyalty.
Furthermore, traditional commerce outsourcers are frequently providers of
domestic-only services versus international solutions. As a result, companies
requiring global solutions must establish additional relationships with other
outsourcing parties.
Another vital point for major brand name companies seeking to outsource is
the protection of their brand. When looking for an outsourcing partner to
provide infrastructure solutions, brand name companies must find a company that
can ensure the same quality performance and superior experience that their
customers expect from their brands.
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