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Hostcentric Teams with Arthur Andersen

Managed service provider (MSP) Hostcentric Inc. announced Thursday (Jan 25) the formation of a strategic alliance with consulting firm Arthur Andersen.

Hostcentric is one of the largest privately held managed service providers offering a full range of Web hosting services, e-commerce solutions and technology infrastructure. Under the terms of this alliance, Hostcentric has been selected by Arthur Andersen as a preferred provider of hosted managed services.

"Forging this historic partnership with Arthur Andersen provides outstanding global systems consulting capabilities to our clients," said Fred Pounds, CEO of Hostcentric. "These capabilities, together with Arthur Andersen's unique combination of financial and tax advisory services, will help our clients compete more effectively in the e-business world."

Through the alliance, Arthur Andersen and Hostcentric will provide cost- effective, top-tier hosted system solutions to their clients worldwide. Arthur Andersen will provide integration, implementation and process improvement services, while Hostcentric will provide hosted managed services.

By utilizing Arthur Andersen's global implementation and process improvement solutions, Hostcentric will be able to accelerate its strategy of providing hosted managed services and top-tier applications software-based ASP solutions, including financials, enterprise resource management and customer relationship management solutions.

Additionally, using Arthur Andersen's rapid implementation methodology the alliance will allow clients to very quickly reap the benefit of a top-tier hosted software application solution with minimal up-front investment. As a result, many clients previously unable to use certain system solutions because of cost will now have an affordable and scalable hosted solution.

"Outsourcing managed services and other IT functions by taking advantage of an ASP model is a major opportunity for many of our clients today," said Tom Mangan, managing partner of Arthur Andersen's enterprise technology solutions. "With Hostcentric's managed services and infrastructure capabilities, and the world-class consulting and implementation skills of Arthur Andersen, that opportunity has become a reality."

Being associated with the Arthur Andersen name will go far to assuage the fears of some companies who may still be wary of outsourcing apps, Hostcentric president and COO Gregory McKown told ASP News. "Arthur Andersen chose us, which validates us as an acceptable risk, at least in Arthur Andersen's mind."

"People are still afraid to outsource. They want to see others be successful before going that way themselves," McKown said. "The best reference we have is ourselves -- we use our services to run our own operations."

Another cost-saving benefit of the Andersen relationship is that Hostcentric doesn't have to get involved in a potential client's decision-making process until later stages, Pounds told ASP News. "Arthur Andersen works with the companies to make the decisions. Instead of being part of the sales cycle, we're brought in at the appropriate time. It brings us to profitability much faster."