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Business Transformation in Action

Joe McKendrick

SOA Drives Large Government Outsourcing Deal...

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Over the years, we've talked a great deal about how service oriented architecture is breaking "outsourcing" as we knew it into smaller chunks, delivered more as cloud services than large megadeals.

Well, SOA is still behind some of the old-model megadeals we hear about as well. For example, CSC just announced that it was awarded a contract by the Centers for Medicare & Medicaid Services (CMS) Office of Clinical Standards and Quality to migrate key its information technology (IT) systems to a new service-oriented architecture. The contract, which was awarded during CSC's fiscal 2011 second quarter, has a six-month base period and six one-year options, bringing the estimated 78-month contract value to $230 million.

Under the terms of the agreement, CSC will provide design and development services, consolidating three groups of applications to create a service-oriented IT architecture. Specifically, CSC will be responsible for maintaining operations for the Standard Data Processing System, the Value Based Purchasing and the End Stage Renal Disease application groups. Additionally, CSC will support the collection, analysis, reporting and management of claims, clinical, survey and project data from Medicare and Medicaid providers.

But the future of outsourcing may still be a larger volume of smaller-scale deployments. In fact, A few months back, CSC announced a partnership with Google and Amazon to provide cloud-based services to clients.In a post at BusinessWeek, Arjun Sethi and Olivier Aries discuss the implications of such arrangements, observing that "in the next five years outsourcing as we know it will disappear." Rather than turn to the large US, European and Indian service firms that have dominated the outsourcing landscape, they will be pulling services off of the likes of Google and Amazon, they predict.

The big outsourcing firms are full of brilliant people, and I know this shift is not lost on them.

In this blog (formerly known as "SOA in Action"), Joe McKendrick examines how BPM and related business and IT approaches can promote business transformation.

Joe McKendrick

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. View more

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