Best Practices #2: Offshorability Analysis

Do an analysis on the various applications and/or future projects for offshorability. Asses the amout of work that can be offshored. There are key factors to determine the onshore/offshore mix such as:

  • Level of interaction with end users

  • Use of formal processes and tools

  • Level of interaction with third parties

  • Clearly defined roles and responsibilities

  • Technology used

  • Best candidate for a pilot project satisfies following criteria:
  • Low turn around time

  • Low level of interaction needs

  • Higher use of formal processes/tools

  • Low interaction with third parties

  • Communication is the Key in being succesfull in offshoring IT

    The success of the communication plan depends on the development of customized communication streams that have the end objective of addressing key challenges, managing resistance to change and achieving stakeholder buy-in. Effective communication strategies comprise of both internal and external elements and are treated as a separate function with its own set of objectives, guidelines and tactics. This issue goes on to discuss the factors that an organization should consider when developing an effective communication strategy.

    The key factors considered:
  • Communications Charter viz. communication scope, goals and issues, identifying/understanding the needs of each stakeholder group and the success imperatives for services globalization.

  • Communications Stakeholder Analysis viz. recognizing the roles of the various stakeholders, their interests, the relationship they share; also determining their information needs, expectations, etc

  • Communications Success Metrics viz. laying down measures (quantitative) to gauge the efficacy of the communications plan and its execution.
  • From the Ernst and Young ICT Barometer

    Verdubbeling budgetten offshore ICT-outscourcing
    Bedrijven die op dit moment ICT-activiteiten verplaatsen naar of uitbesteden aan offshore landen verwachten een forse stijging van hun ICT-budget aan offshore outsourcing naar gemiddeld 31 procent. Op dit moment besteden deze bedrijven gemiddeld veertien procent van hun ICT-budget aan offshore outsourcing. Van de ondervraagde directeuren/managers en professionals die op dit moment niet aan offshore ICT-outsourcing doen, verwacht zestien procent dat hun organisatie in de toekomst ICT-activiteiten zal outsourcen. Binnen de dienstensector ligt dit percentage met 26 procent aanmerkelijk hoger. De overheid en not-for-profit sector blijven met vijf procent achter. India wordt met ruim vijftig procent veruit het meest genoemd als offshore land, gevolgd door China met zestien procent.

    Het nieuwe vertrouwde Europa

    India is de toekomst, China een goede tweede en de Filippijnen en de kleinere Aziatische landen zijn in opkomst. 'Go Far East, entrepreneur', lijkt de offshoringslogan te zijn. Zo simpel is dat evenwel niet voor iedereen. Aziƫ is ver weg. De cultuur is anders. Het verre onbekende schrikt af. Enter Oost-Europa. Van ver weg naar dichtbij. Onbekend wordt vertrouwd. Zijn de voormalige Oostbloklanden een volwaardig alternatief?

    >> lees meer

    Seminar for IT - managers with vision

    Levi 9 Global Sourcing organises a seminar for IT - managers with vision, in association with GPI Consulting, Ordina and the Ceasar Group. For more info visit the Levi9 web site.

    The Bangalore paradox

    When I red this article published by The Economist I could not agree more with the following:

    ....Gartner forecasts that in 5-7 years' time, many of the software processes at present performed manually in offices in Bangalore will be automated. India will have to move upmarket and "who is going to convert the army of programmers into businessmen".....

    I am managing nearshore projects already for 5 years. It is really fantactic to see how much the productivity and the quality improves simply by automating some development, testing and deployment tasks.

    Best Practices #1: Start with a pilot project

    You are convinced in the benefits of the nearshore development, but you have also heard of the possible pitfalls. Start with a small pilot project. You will be able to assess the competitiveness and quality of the chosen outsourcing partner as well as your own company's readiness for the nearshore outsoucing. A pilot project might be the best way to start and establish a long term relationship.

    EU Opens Door to Serbia and Montenegro

    Article 1
    Article 2

    Seminar: IT-kansen in lage-lonenlanden

    Voor de IT Managers met visie, organiseert Levi 9 Global Sourcing een seminar: IT-kansen in lage-lonenlanden. Voor meer info ga naar de seminar pagina.

    Offshore Outsourcing and Agile Development

    Forrester's opinion on offshore outsourcing and new appliction development movements. Read the article.