Trend To Outsourcing

Eastman Kodak was an early pioneer in the outsourcing movement. In 1989, Kodak contracted with Integrated Systems Solutions Corporation (ISSC), IBM's services branch, to do the computer work that Kodak had been performing at four of its facilities. Then in 1994, Xerox signed a 10- year outsourcing contract for $4.1 billion with Electronic Data Systems Corp. (EDS) to do a major portion of its computer work. AMTRAK expects to save $100 million over a 10-year period from its outsourcing arrangement.

Those are three examples of the well-publicized movement to outsourcing as a business strategy. It has been estimated that 80 percent of information systems work will be done by contractors by the year 2000.

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