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Julie Lavallee


Online Marketplace Targets Outsourced IT Projects

Looking for an IT contractor for an upcoming project? The online IT marketplace from neoIT links buyers in need of IT services with qualified providers and enables the outsourcing, management, and delivery of IT projects. Based in San Ramon, Calif., the company's marketplace provides a personal online workspace for buyers and providers to review bids, track projects, and gather account information.

The intent is to help companies better manage and reduce the cost of the IT services procurement process, as well as speed time to market.

For JournalTEK, a Baltimore-based developer of multimedia diaries, neoIT's marketplace saved the company about $70,000 for its first CD-ROM development project, says Keith Losoya, JournalTEK CEO. "We needed to outsource a project to develop a CD-ROM," says Losoya. The company's flagship product, "It's My Diary," is a multimedia recreational CD-ROM that enables teenage and preteen girls to journal their life experiences. "We weren't familiar with developing a CD-ROM or writing a request for proposal [an RFP] for companies to bid on. We wanted a local company to enable us to discuss the project. Within three weeks, neoIT sent us five bids.

"We narrowed the bids down to three and chose Optimos," a multimedia project company based in Chantilly, Va. "Optimos understood the concept we were trying to develop and could provide us with a low-cost solution," says Losoya. NeoIT was able to negotiate a lower price for the contract than JournalTEK could have negotiated on its own, he says.

NeoIT is targeting its services at a rapidly growing market. In a recent report from Stamford, Conn.-based Gartner Group, the worldwide market for IT consulting, development, integration, and outsourcing will increase from $696 billion in 2000 to $1.3 trillion in 2004.

How It Works

Once buyers and providers are registered with neoIT, they receive a password that enables access into a private workspace, which contains the negotiations and project development information. The process of matching the appropriate provider with the buyer begins with an RFP, which involves four components: project information, time, technical information, and project complexity. The provider submits information detailing technical skill, as well as previous project experience. Taking information from the criteria of the buyer and the provider, the neoSelection Matrix gives a score and ranks the bid. Before the selection, neoIT offers buyers the opportunity to interview providers. Buyers can also review a description of the bids, as well as bid documentation.

Once the provider is selected, neoCollab, a performance metric, then provides daily tracking of the project. It enables a supplier to generate weekly reports and project milestones, as well as explain delays or milestone setbacks. NeoIT also gives the buyer and supplier the option to hold a Web conference at any time during the project.

Throughout the project, neoIT is available to negotiate, answer program questions, and provide guidance. NeoIT also handles payment between buyer and seller, and receives 10% of the total contract.

Currently, neoIT has 400 buyers and more than 3,000 IT provider companies registered on its Global Services Network. The provider organization represents more than 250,000 IT professionals worldwide.

In addition to the online marketplace, neoIT offers enterprise solutions for IT buyer companies to automate the procurement, management, and delivery of IT services.

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