| Common blunders
in outsourcing |
 |
| All over the country—all
over the globe, rather—offshore partnerships
are on the rise, spurred by the chokingly
tight IT labor market in the United States,
the zero-time-to-market demands of the Internet
economy, the promise of cost differentials
that can go as high as 60 percent and, lastly,
a sizable aggregate of high-level, midcareer
IT executives with significant offshore
experience under their belts. The quality
of overseas labor is up at the same time
the level of projects being moved offshore
is becoming more sophisticated |
 |
India remains the premier
country of development. But Pakistan, Northern
Ireland, Israel and Middle Eastern countries
are all up-and-coming destinations of choice,
in addition to Mexico, the Philippines and
so-called near-shore facilities in the maritime
provinces of Canada. |
 |
Companies interested in
investigating offshore opportunities must
be able to tackle challenges in three areas:
cultural, geographical and political. The
very places where foreign development is
hottest are also at times home to earthquakes,
typhoons, floods and shaky infrastructures
that can knock out communications and political
instability. Companies working offshore
must be willing to invest time and money
in building processes to ensure proper project
management, effectively evaluating and training
personnel, and establishing meaningful metrics
to make sure projects stay on track. |
 |
To prevent your offshore
projects from bobbing aimlessly on the high
seas, or sinking in stormy weather, follow
the golden rule of any outsourcing project:
Don't assume anything, ever. Specifically,
companies must pick their projects with
care; spend an equal amount of consideration
choosing the right offshore company with
which to partner; commit to communicating
early and often with their foreign counterparts;
and come ready to invest in the relationship,
both strategically and financially. |
 |
| Choose
Your Projects Cautiously |
 |
| There is no longer any single type of project
that companies deem more acceptable for travel
offshore than high-level applications such
as website design, and product-line enhancements
now make the trip alongside the legacy-system
maintenance and customer-service contracts
that were initial candidates for outsourcing.
But there are general characteristics that
make a project more likely to succeed away
from home. |
 |
| Clarity and containability
are the two watchwords of choice. Consider
projects that can be sharply defined and specified,
and those that can easily be snapped out and
back into the larger application—a particular
concern because integration points are often
a source of trouble and confusion.. Outsource
those tasks that have a specific build-and-release
cycle that doesn't require daily interaction
between developers and Humana's own IS staff.
|
 |
| Offshore projects work best when requirements
are well-known and success is easily defined
and understood. Onshore works better where
the opposite is true: if you have an iterative
development cycle or when the end point is
a moving target. Onshore is also more expensive
when it involves importing offshore talent.
You will need to pay to bring developers over,
for their [H1-B work] visa, their housing
and board, and you pay a premium to entice
the people to come here in the first place |
 |
| Pick
Your Partner With Care |
 |
Any successful
offshore relationship must begin at home—in
the corporation's home office. Remember
If it won't work onsite, it won't work offsite
! On the flip side, some managers at some
companies go onsite to evaluate working
conditions and the strengths of the outsourcer's
remote management team, which plays a critical
role in keeping communications open and
milestones met. |
 |
| With offshore companies in
particular, workforce issues can be sensitive
and politically charged because of local labor
or cultural situations. Beyond basic social
responsibilities lies a much more subtle but
crucial element: corporate culture compatibility.
In offshore partnerships, companies can be
almost hyper- aware of ethnic cultural differences
such as language barriers and differing work
hours but can miss red flags that might point
to significant problems later on. It can be
pretty hard to pay attention to corporate
culture at the outset and most PR companies
don't want you to see the whole picture. One
good litmus test is to determine how bad news
is communicated or how problems are discussed.
"What do they call bugs?" for example.
|
 |
Corporate
culture is the biggest challenge, more so
than regional culture or language. Simply
being removed can exacerbate any differences
in corporate culture. You have to be careful
not to assume anything even when you think
there shouldn't be a problem. |
 |
| Commit
To Communicating Early And Often |
 |
Offshore
veterans recommend that companies use every
technological tool at their disposal to
keep the lines of communication as open
as possible, including e-mail, fax, voice
mail, teleconferencing, videoconferencing
and even face-to-face meetings both at home
and in the offshore location. Different
people communicate in different ways. Some
engineers are uncomfortable with videoconferencing,
others like to see the other person's face.
|
 |
| The goal
in offering an array of communication options
is to mimic the kind of bumped-into-you-in-the-hallway
discussions that aren't possible when half
the team is in India and the other half is
in Chicago. Not only do frequent e-mails and
videoconferences help build the team cohesion
that is crucial to offshore success, they're
an important way to pick up casual progress
indicators that often don't come out in a
formal meeting yet may be crucial to a project
downstream. |
 |
| That said,
formal meetings can't and shouldn't be ignored.
In addition to capturing those water-cooler
moments it is important to set a schedule
of regular meetings between onshore and offshore
workers, with the interval determined by the
nature of the project and the employees' level
of responsibility—engineers may need
to conference call weekly, with marketing
experts getting together once or twice a year
for a longer, more in-depth planning session.
|
 |
| With communication
so crucial to the success of an offshore partnership,
it's essential that organizations appoint
a single person to act as a go-between, a
manager who has a strong command of both the
project at hand and the bigger goals of both
companies. You need to have a project manager
who can operate effectively in both worlds
and it's important that person have authority
and responsibility for the project in both
places |
 |
| Anticipate
and Accommodate Cultural differences |
 |
| Language
differences would seem to be a natural first
concern when sending work overseas, but in
fact misunderstood work habits most frequently
derail offshore arrangements. Even in countries
that have what Americans consider to be a
strong work ethic, hours are generally shorter
and vacations longer and more frequent, and
coworkers are more reluctant to receive calls
afterhours or during the weekends. And while
most international business travelers are
already aware that handshaking, table manners
and other staples of standard business interaction
can unwittingly offend people of another culture,
managers need to pay special heed to miscues
that can have a direct impact on an overseas
project. |
 |
| |
| Whether you need a
cool Cold Fusion dynamic web site, an ASP
auction portal, a PHP shopping cart or a Lotus
Notes-Domino application or your MS SQL database
needs optimization we have the necessary skills.
Call us ! |
| |
| |