Let me throw my hat into the ring on this discussion. I also have seen both sides of this coin. Some of you remember that I was the EDI Guy at a company formerly known as PaperPak. They restructured, outsourced IT and EDI. Now their EDI is being run by an excellent managed services organization. Some comments I have heard from my former colleagues who still work for the remnant of that company include observations that everything costs extra. If they want to add a trading partner, there is a charge. If they need a new report, there is a charge. What they don't understand is that I wasn't free working there - the company was shelling out a bundle, and the nickels and dimes they find themselves paying don't add up to what my salary and benefits cost the corporation. So, there is big savings.
On the other hand, the outsourcing company isn't sitting in on the user meetings. They don't hear the day-to-day problems that every business has, and cannot interject ideas for using EDI or other IT capabilities for solving these problems. When you cut your IT staff, you lose much more than technical expertise. You lose a huge investment in business understanding. I think that is the biggest loss when IT or EDI is outsourced. A good EDI person has dealt with multiple facets of their employer's business: AP, AR, supply, shipping, receiving, sales, marketing, planning and IT, to mention a few. The managed services guys deal with AP, when they need a check. It means that IT is no longer a strategic advantage, because the brain trust that comes along with an in-house IT staff is gone. You get what is in the box, nothing more. And if you don't really understand how to use what is in the box, you don't even get that. I'm guessing that, when all those guys Steve mentioned decided to go to managed services, they retained key staff assets who knew EDI and the business. But the average Fortune 50,000 company doesn't have six guys doing mapping, another doing translating, and a cadre of business analysts, systems analysts and IT staff. It's all one or two people, and if you think that coding or mapping or setups is what they do, and you can get that done outside, you may be missing the boat. Now I am back to being a consultant. I clean up the mess others leave behind. I find I am most effective when I am on-site regularly, and begin to learn the nuances of how the firm does business. Kind of like an employee - but more expensive. Hmmm. Art Douglas Lead Consultant Blackwater Network (877) 464-8915 -----Original Message----- From: [email protected] [mailto:[EMAIL PROTECTED] On Behalf Of Steve Sent: Wednesday, August 20, 2008 10:39 AM To: Steve Montgomery; Steve Montgomery; 'Holt, Jake'; [email protected] Subject: RE: [EDI-L] Re: Software and installation instructions? Allan, Your hostility toward me and your accusations of me only in this for the money are not warranted. And, I believe all your experiences with respect to outsourcing the IT department are accurate and true. However, to throw me and my company under the same blanket is unenlightened on your part. Especially, in consideration that my dialogue was intended only to dispel some common misguided beliefs on the concept of Managed EDI Services. I can rebut all your horror stories with success stories but that is not the purpose as I am NOT here to sell you my bag of goods. My position is simply one of education whether you want to believe it or not I can not control but in order to be knowledgeable in life one must know all the varying positions in order to accurately choose a side they can live with. Clearly, you can live without Managed EDI Services. I get that LOL. But now, you have to consider that what you based your position on may not be so crystal clear but still enough for you to be comfortable with your position. My position, on the other hand, having been and EDI programmer, manager of EDI and Network Services for Proctor-Silex, Rubbermaid and Roadway is that if you can find someone to do it better you hire them. You see I was able to do all that without calling you out and disparaging you and any of your employment agendas. Thanks, Steve _____ From: Steve [mailto:[EMAIL PROTECTED] Sent: Wednesday, August 20, 2008 1:37 PM To: Steve Montgomery; 'Holt, Jake'; [email protected] Subject: RE: [EDI-L] Re: Software and installation instructions? By the way on a different note: Is anyone aware of CIO Talk Radio? It is an internet radio broadcast that probes and discusses various IT topics and trends. It broadcasts Wednesday mornings at 10am eastern and can be accessed via www.ciotalkradio.com <http://www.ciotalkradio.com/> . It covers all topics using guest CIO's from businesses of all kinds. I will say I have yet to hear a topic on EDI but maybe your management would want to know about this show as IT management is always interested in IT topics and what the trends are. Thanks, Steve _____ From: [email protected] [mailto:[EMAIL PROTECTED] On Behalf Of Steve Sent: Wednesday, August 20, 2008 1:32 PM To: 'Holt, Jake'; [email protected] Subject: RE: [EDI-L] Re: Software and installation instructions? Please call me directly and I will put you in touch with several fortune 500 companies that have significantly lowered their EDI costs and significantly improved their capability and reliability. You can reach me directly at 330.842.1542. That is if you want to broaden your horizons. However, if you want to keep believing in the one-sided coin then by all means do not call. Steve _____ From: [EMAIL PROTECTED] <mailto:EDI-L%40yahoogroups.com> com [mailto:[EMAIL PROTECTED] <mailto:EDI-L%40yahoogroups.com> com] On Behalf Of Holt, Jake Sent: Wednesday, August 20, 2008 1:15 PM To: [EMAIL PROTECTED] <mailto:EDI-L%40yahoogroups.com> com Subject: RE: [EDI-L] Re: Software and installation instructions? ECEDI I take it? Personally I've never seen anything that justifies even considering outsourcing EDI for anything beyond mom 'n pops meeting a few customer/vendor requirements. All I have ever seen is over-inflated prices for buying an infrastructure vs. over-inflated promises for outsourcing. 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