ICG Commerce Manages Subcontrator Labor Procurement Outsourcing For Information Technology Services Specialist QualxServ
Strong Initial Results from Strategic Outsourcing Initiative Earn Procurement Services Provider Contract Extension from QualxServ
PHILADELPHIA - Tuesday, September 30, 2003 - ICG Commerce, a leading procurement services provider, announced
today that it has secured an extension of its procurement outsourcing contract with IT services specialist QualxServ.
The outsourcing engagement focuses on QualxServ's largest and most strategic external purchase as an organization:
contract labor services. From sourcing to purchase-to-payment transaction and vendor management, the ICG
Commerce team provides the full range of purchasing expertise, resources and technology needed to strategically
automate and manage all aspects of subcontract labor procurement on QualxServ's behalf.
"Although our services are predominantly delivered by employees, we do complement our workforce with
subcontractors as engagements require, so the procurement of subcontract labor is something we take very seriously,"
said Bob Lerner, chief executive officer of QualxServ. "We decided to outsource the function to ICG Commerce
because we knew they possessed both the category expertise and the technical know-how to help us find the right group
of vendor partners and make the financial aspects of working together as efficient as possible. We look forward to
continuing and expanding our partnership with ICG Commerce to bring additional tools and resources to both the
commercial and government sectors of our business."
The latest contract extension between QualxServ and ICG Commerce calls for the implementation and management of
ICG Commerce's Professional Services procurement module, a component of the company's comprehensive set of
fully hosted sourcing, purchasing and payment tools. This module will automate the entire purchase-to-pay process and
has been designed to completely eliminate the back end invoice reconciliation process that plagues service related
categories. In addition, the technology is completely integrated with QualxServ's proprietary project management and
dispatch systems. As a result, the company's project managers have complete visibility into request status, real-time
labor tracking, invoicing and payment.
QualxServ's push to automate services procurement through ICG Commerce is in line with the results of a recent
survey conducted by the Center for Advanced Purchasing Studies, which showed that while services spend is expected
to increase by as much as 22 percent over the next year, three-quarters of the respondents still describe this area of
procurement as either "difficult" or "very difficult" to manage when compared with buying goods.
Christa Degnan, research director for Aberdeen Group's supply chain practice, is among the growing list of thought
leaders calling for the use of outside resources and tools to address the issue. In a research brief published last month,
she wrote: "Companies that have forged ahead and begun to address services automation through customization of
existing e-sourcing and e-procurement technologies – as well as deployments of dedicated OSP (online services
procurement) solutions – are seeing significant return on investment."
"We are pleased to see that our work in the area of subcontract labor procurement is serving the client's needs well,"
said Edward H. West, chairman and chief executive officer of ICG Commerce. "Because of the human factor involved,
services procurement can be one of the most challenging buying categories to address. As QualxServ has found,
outsourcing this function to a partner like ICG Commerce that has a comprehensive knowledge of the landscape can
pay major dividends, not only from a cost savings perspective but also in terms of supporting the company's objective
to deliver top-quality service."
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About QualxServ
QualxServ specializes in providing, technology deployment and field maintenance service for leading technology
companies. QualxServ has over 1,500 technicians and 150 service locations throughout the United States. QualxServ's
service professionals have decades of experience and in-depth knowledge of the technologies that drive today's
business computing and communications. For more information, please visit www.qualxserv.com
About ICG Commerce, Inc.
ICG Commerce (www.icgcommerce.com) is the leading Procurement Services Provider delivering total procurement
cost savings through an unmatched combination of deep expertise and hosted technology. ICG Commerce provides a
comprehensive range of solutions to help companies identify savings through sourcing, realize savings through
implementation and transaction management and drive continuous improvements through category management. ICG
Commerce Inc., a privately held company founded in 1992, is a member of Internet Capital Group's (Nasdaq: ICGE)
network of partner companies and has been honored as a Forbes' Best of the Web: B2B and UPSIDE Magazine Hot
100 company as well as had its executives recognized among iSource Business "Pros to Know".
Contacts:
Genevieve Brill
ICG Commerce
215-649-1494
Brittany Morris
Ruder-Finn
312-329-3983
morrisb@ruderfinn.com
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