Bristol Myers double-bundles

BMS Bristol Myres Squibb today joined a rare breed of enterprises which have bundled apps and business process to two suppliers across finance and HR towers, with the announcement today that Accenture has taken on a 10-year $550m engagement to take on the pharma giant's finance and accounting processes and related application development and management services.  This follows on from their recent $324m 10-year deal signed with IBM that covered Human Resources BPO and related applications services.

This strategy builds firmly on our recent discussion on bundling apps, and the related business processes supported by those apps, under a single supplier.  This deal is just the latest in a series of contracts where the buyer is clearly recognizing the synergies of tying together process design, knowledge transfer and governance across IT and operations "boundaries".  Bundled outsourcing is not the answer for everyone, but it can provide a major spur for some companies looking to shake-up their back office functions, provided the vendor can demonstrate the skills and business understanding to drive this agenda.  These "boundaries" shouldn't exist, and bundled BPO is one potential solution that can help eliminate them. (Much) more on this topic to follow…

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One Comment

  1. Eleanor Greenwich
    Posted October 2, 2008 at 10:39 pm | Permalink

    Phil,

    Very interesting. Narrowing the number of vendors in your delivery portfolio is clearly the way to go. Thanks for sharing your thoughts,

    Eleanor

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