Umbrella approach looks to reign

• Published in: Chemical processing (Chicago, Ill.) Ill.), 2005-05, Vol.68 (5), p.34-36
• Main Author: Basta, Nick
• Format: Magazinearticle
• Language: English
• ISSN: 0009-2630

THESE DAYS, TO SAY THAT MORE BUSINESS functions are being outsourced is like saying summertime is around the corner: it's self-evident, verging on cliche. Companies, already having outsourced a lot of back office functions, such as information technology (IT) and human resources management, now are targeting more central business functions, such as accounting and even R&D. In the chemical industry, maintenance has been performed on a contract (outsourced) basis at many plants for quite some time; likewise, contractors have long handled various aspects of environmental management, such as hazardous waste disposal and wastewater treatment. However, the level of outsourcing is on the rise in the industry. According to a recent poll on our Web site, ChemicalProcessing.com, nearly half of respondents saw outsourcing increase at their facilities during the last 12 months, whereas only 7% reported a decline. (See chart on p. 15 for more details.) The push for more outsourcing certainly has not been lost on vendors. An increasing number of suppliers want to go beyond responsibility for their own equipment and take over servicing of both their own and competitors' units. The ultimate goal is to assume full responsibility at a site for an entire technical area. Implementation of such a broad role depends on plant size. For large sites, a vendor might provide dedicated staff onsite, perhaps even on a round-the-clock basis. For smaller plants, the supplier might send its specialists on a regular schedule to monitor equipment and conduct routine service calls, and have them on call 24/7 for emergencies.