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Outsourcing Information Technology: One Step at a Time

Fortnightly Magazine - November 1 1995

than conversion. Typically, a company's processing simply runs on the outsourcer's processor. Moving the data and programs to the outsourcer's location is covered in the implementation plan, and includes an appropriate level of testing to ensure that the target environment is operating properly. This generally causes minimal disruption; most outsourcing providers make free testing time available on their equipment.

It is possible to successfully outsource many of the traditional and contemporary IT activities that we once viewed as critical to a company's operation. Progressive CIOs are leading their organizations into the center of corporate activities as real value-added

partners. They are making a

difference, both operationally and financially, as they focus their competitive resources on only those unique activities that

augment the organization's competitive advantage (em leaving noncore business functions to IT service providers whose core business is IT. t

Dr. David A. Miller is currently general manager of information technology services for Central Louisiana Electric Co. The company maintains outsourcing affiliations with Philips Communications and Processing, Inc. in South Plainfield, NJ, and Utility Partners, Inc. in Tampa, FL. Other providers are being considered for future IT outsourcing opportunities.


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