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To: Kashish King who wrote (1140)4/14/2000 11:28:00 AM
From: Hands Off  Read Replies (2) | Respond to of 1938
 
Rod, if your arguments are valid then why would anybody else be joining these exchanges if they already have the db and presumably XML coders to do the job themselves. For example, it was just announced today on Bloomberg that both Renault and Nissan are joining the GM, Ford DamilerChrysler exchange.

The point I am trying to make is that this is not about technology - and believe me I am all for the next leg up on the technology ladder - whatever it may be. This is business pure and simple. These companies want to be part of the exchanges NOW. They want the efficiencies and savings immediately. They don't want another in house application if they can buy something that already works. Even if it costs more out of pocket dollars the reduction in managerial effort is worth it. Remember, in the case of the auto exchange, these folks are in the business of making and selling cars, not running exchanges.

Another example from personal experience: I was contracting at Bellsouth when they outsourced - sold - almost their entire IT dept to Anderson. Why? Bellsouth wanted to be a Telecom company and not an IT company. As IT becomes more and more complex and a speciality, many companies are opting out for an outsourcing deal so they can focus on their core business.