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From information technology outsourcing, outsourcing is expanding scope into processes and process utilities. 
This is not a new concept. One of the most successful examples of a Business Process Utility (“BPU”) is Brewers Warehousing Company created by the Ontario Government in 1927.
By 1953 it became Brewers Warehousing Realty Limited. Today their legal name is Brewers Retail Inc. Owned by Labatt, Molson and Sleeman, provides warehousing, distribution and retail/wholesale sales for 25 Ontario breweries and 35 out of province and foreign breweries.
This successful business model shows how:

• Scale is created by governments or regulatory bodies;
• Dominant industry players standardize to harvest the benefits of scale;
• Economic sharing is adapted to benefit founders and new participants; and
• Competitors can profitably share the scale benefits of generic processes.

Similar concept-initiatives have more recently put in place, and some are in the process of implementation. Information Technology Vendors have tried, in most cases not successfully, to build BPU’s.


Here are the lessons learned from participating in some success stories:

 

 

 

 

 

 

 

 

 

 

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