Back-office Outsourcing Makes Rapid Growth Possible -
[Cached Version]
Published on: 10/30/2001
Last Visited: 7/29/2002
After a two-month installation, change came quickly, says George Valentine, CEO of Transchannel.After switching the company to a Unix Oracle platform, reports are generated more quickly, allowing Sunrise executives to make business decisions faster.As the company plans international expansion, the PeopleSoft application will provide multi-currency conversions.
Sunrise eliminated one IT position and also sped up the payroll process from two days to one day.
"Can you imagine knocking off a complete day in a business-critical process?"
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asks Valentine, whose company serves buyers with annual revenues between $200 million and $4 billion."People want better reporting from their Enterprise Resource Planning (ERP) application for better decision making.At the end of the day they get better reporting and can make better decisions.They now have more control."
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Buyers like Sunrise often experience significant savings ranging from one to three times the cost of the software by engaging an ASP over buying and installing software themselves, Valentine adds.Once a piece of software is loaded, a company will have to pay for hosting hardware upgrades, post-production support, customization and staffing that can add anywhere from 50 to 70 percent to the cost of the application, he says.Once the software is upgraded, the cost rises again.
Now, Sunrise has eliminated significant costs and has a partner who knows the software and system better than any internal staffer.While Sunrise is still improving how it utilizes the application, its executives also looking to bring on other ASP services, based on what they've learned from their relationship with Transchannel.
"Outsourcing is a fantastic solution if it's used in the right places at the right time," she says.