Region

Europe

Bristol-Myers Squibb outsources network duties to BT

Does the above headline/news release about the pharma business, leads one to believe that some health related aspect is being sourced, or about a company utilizing support but not mainstream service solutions to contain costs? In any business cost escalation occurs as a natural part of domestic and global economic changes.

These pressures combined with those exerted by shareholders, employee and organized labor wage demands and seemingly unending regulatory compliance requirements leave very few companies with alternatives. What is essential is that these companies, often the backbone of domestic economies, must exercise surgically precise care in reducing risk through solid assessment of countries and company viability & capability.

It is indeed an interesting announcement in light of other pharma companies looking to cut similar deals. While on the surface it appears to be a harmless but important deal to deliver service whilst allowing the company to focus on its primary business there remains question about the importance of network dependability, security and continuity.

When you mix private with public services it’s no longer a case of one-type-fits-all in terms of operating protocol.

All of these factors are essential to maintaining the integrity of data services in the highly regulated drug sector. In light of credit concerns in the EC, specifically in the UK, the question is whether the telecommunication giant can deliver in the long term and whether tentative global economics could have an influence on the sourced relationship.

I also wonder given the emphasis placed on flexibility, changing needs and done so globally if cloud solutions were taken into account. This would suggest both an opportunity to fulfill needs while spreading risk over a much larger topography.

To the read the original news release click here.

Jerry Durant serves as Chairman Emeritus (founder) for The International Institute for Outsource Management (IIOM) and member of Outsourcing magazine editorial board.