GXS offers to prove value of cost savings to individual manufacturers

Its methodology examines the cost of managing a B2B programme in-house versus outsourcing to a provider like GXS, taking into account all costs and resources. The difference, however, is that this one is based on actual customer results and provided via the independent business modelling consultancy Hobson and Company. Hobson says it interviewed several existing GXS clients and tested the model with additional customers and applied it to their deployments. Interestingly, the model is not limited to pure TCO measurements. The methodology also helps customers establish present value of their B2B spend – providing an assessment of future cash flows over a specified period to indicate how much value a project might add. It also delivers an itemised view of B2B programme costs to demonstrate where the opportunity for cost-savings is greatest. “The decision to outsource B2B or keep it in-house is one that companies in nearly every vertical industry consider at some point. In the current economic environment, even the traditional outsourcing sceptics are considering managed services,” says Steve Keifer, vice president of industry and product marketing. “We wanted to make it easy for companies to make a decision by helping them definitively establish whether B2B outsourcing will save them money in the short-term and the long-term. This new TCO methodology not only provides cost comparison, but also helps customers discover the hidden costs sometimes associated with conducting B2B in-house and Present Value calculations that can accelerate decision making.” A white paper outlining the methodology for measuring TCO and the costs associated with establishing and maintaining a B2B program is available now at http://www.gxs.com/.