Several years ago I was the data center for a very large Texas-based regional hospital (over 1K in beds) running on a 9672 (at the time). Our "holding company" owned another dozen or so small (50-75 bed) hospitals running on a client-server solution. The software running in the smaller hospitals was not Y2K compliant and time was running out so they contracted with Perot Systems to get it finished.
An overly aggressive sales team got their foot in the door and promised a $100M in cost savings over the 10-year contract. Of course the executives jumped on the agreement and we all ended up being outsourced. The first year (and only year - I left afterward) after outsourcing the operational cost of the data center (not including software) doubled! In fact there has been ZERO cost savings as a result of the outsourcing if anything costs have been ~ 50% higher. I am sure that in certain circumstances economies of scale will prevail and cost saving can be realized. But, as was our case, when you have a streamlined operation with a limited, hardworking staff that's not always the case. Gary -----Original Message----- From: IBM Mainframe Discussion List [mailto:[EMAIL PROTECTED] On Behalf Of Patrick Falcone Sent: Wednesday, February 13, 2008 10:13 AM To: IBM-MAIN@BAMA.UA.EDU Subject: Re: Question on Out Sourcing Better to check the agreement very thoroughly. I would want to know, before signing, what is covered *after* the contract has been signed. You might be surprised at what you'll be paying for a few weeks down the road after the contract has been signed and you need *x* to be investigated, solved, implemented, upgraded, etc... for you by the outsourcer. I'm willing to bet that a lot of companies get hit with hidden fee's down the line where it becomes evident that outsourcing is ending up costing more that was originally thought. Pat Mihalec <[EMAIL PROTECTED]> wrote: I know this but I needed it from someone else to show the current director. He has not mainframe experience, his background is Windows. He thinks that if you move to the outsourcer system you no longer pay the fees. It comes as a shock to him. I suggested he ask the outsourcer directly about this. Pat Mihalec Rush University Medical Center Senior System Programmer (312) 942-8386 [EMAIL PROTECTED] ---------------------------------------------------------------------- For IBM-MAIN subscribe / signoff / archive access instructions, send email to [EMAIL PROTECTED] with the message: GET IBM-MAIN INFO Search the archives at http://bama.ua.edu/archives/ibm-main.html
