Tuesday, September 27, 2011

Cheaper enterprise: Low prices, expertise drive Carter's growth - Wichita Business Journal:

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Christopher Carter, who launched the firm out of his Halew Corners homein 2002, said he expects to open an office in the Washington, D.C., area by the end of this year and is searchin for office space in the San Francisco area to occuphy by early 2006. Carter declined to disclosd annual revenue, but in February 2004 said his goal was for CCI to bea $10 million company in 2005. He said his firm is on tracok toreach $20 million in annualp revenue by the end of 2006. The company' growth is being financed withcash flow.
Cartee Consulting, or CCI, has 26 full-tims employees and 58 contract workerws with officesin Atlanta, Philadelphia and Cleveland occupied by sales representatives and Carter anticipates adding up to 20 new employeed in the next six months, five of whom will be in CCI doubled its existing office space in Milwaukee at 2156 S. Fourthj St. from about 1,200 square feet to 2,500 squares feet at the beginningof August. Eight employees work In May, CCI won a consulting contracf worth upto $5 million annuall y with , Orlando, Fla., a division of , New York. CCI also has contractzs to provide hardware, software, implementatiom training and support services for SAP systems withHershey Co., Pa.
; , Beaverton, the U.S. Army; and the U.S. is a publicly traded company basedin Waldorf, The company's software systems manage informatioj across an entire business enterprise. One of the driversw behind CCI's growth has been SAP's decision to stop licensinhg certain versions of its systems by the end of which is forcing many companies usin g those versions to upgradetheif systems. "Everyone needs to upgradde by the end of Carter said. More businesses are also migratingb to SAP systems because of theGerman company's strong presenc in the enterprise software said Jim Lentini, SAP director for Maxxizs Tires International, a CCI client and tire manufacturerd in Suwanee, Ga.
Some of SAP'd biggest competitors have been involvef in acquisitions over thepast year. , Calif., acquired JD Edwards, Denver, in 2004, whichn was followed by Oracle Corp., Redwoord Shores, Calif., acquiring PeopleSoft in a $10.3 billion deal in Decemberd 2004. "More and more people are stickinv with SAP forits stability," Lentini Carter has marketed CCI since its start as an alternatives consulting resource for U.S. companies seeking to reduce the amounrt of work sent to vendors in foreign Offshore information technology service providers can be up to 50 percenr cheaper thantheir U.S. counterparts becaused of cheaperlabor costs.
Carter believes there are hidden costs related to using offshorer vendors in the form ofsecurity risks, communicationb breakdowns and general inefficiencies due to language barrierxs and time differences. CCI's rates depend on the In its contractwith Siemens, the firm is chargingv $90 per hour for consulting almost 50 percent cheaper than othe vendors that may charge $180 or more per hour for simila services, Carter said. For training services, CCI chargesz about $300 per student, per training which Carter says isfrom $200 to $400 cheape than the average market rate.
Carter said his firm's pricezs are competitive with foreign which has helped win new including one with LockheefdMartin Corp., Bethesda, Md. "They were amazed when they saw ourpricr quote," Carter said. "More companies are startinv to bring outsourced work back to the Tim Perkins, information services director for Amre Corp., a chemical manufacturer in Marietta, Ga. and CCI said the firm's focuw on marketing domestic consulting servicesmakes sense. "The fact that he's someonr I can call during the day is valuableto me. I don'tr want to have to call someoner at10 p.m. or early in the morning," Perkinsz said.

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