The monthly cost of both the ASP and the WAN are written into thecontract and billed to the client site as part of the job cost, Gosays. (If it's not written into a client's contract, differentoperating groups at Barton Malow absorb the costs.) This way, Go isable to help the business and fund projects without dipping into hisown budget.

"These are investments we must make in order for the job site to bemore efficient and for projects to be completed on time," Go says."Not many companies do that because they don't see an immediatereturn, but we're getting very positive feedback from ourclients."

6 Hang a Shingle

Steve Hassell, CIO of the Northrop Grumman Newport News Shipyard (2000profit margin: 4.5 percent), took a different route than Go to reach asimilar advantageous spot.

In early 2001, in concert with business leaders at the Newport News,Va.-based company, Hassell made his IT department a wholly ownedsubsidiary of the Shipyard. As president of the new entity calledNaptheon, Hassell (who retains his CIO title) signed a five-yearservice-level agreement with the parent company, Newport NewsShipyard, and now the IT department operates like a paid consultant.Hassell bills Newport News for all costs related to the department andits services. "Before, we used to have emotional yearly debates aboutthe cost of IT," Hassell says. "This step took all the emotion out ofit. Now we have cost and quality numbers based on standalone research,and we can do an objective business case for any project just like anyother service provider."