Knowledge Management of Global Work

1. Knowledge Management of Global Work Frank Harmsen

2. Agenda • Welcome to Ernst & Young!  • IT Knowledge in a Global Context • The ‘Distance’ notion • Keeping the Balance - The 6P Model

5. Amsterdam Analysis Impleme- mentation Design Test Build New York Hyderabad

6. Amsterdam Analysis Impleme- mentation Design Test Build New York Hyderabad

7. Drivers for Offshore Outsourcing Increasing Competitive Pressures Increasing globalization and evolution of disruptive technologies is forcing companies across industries to: • Provide superior customer service • Reduce cost of operations across board • Continued focus on rapid implementation of IT projects Decreasing Availability of Skilled Personnel • Shortage of skilled IT workforce in developed nations • Rising costs of Manpower in developed nations • Growth of highly-skilled IT personnel in several low cost developing countries Emergence & Evolution of Outsourcing Companies • Increased maturity of the web & state-of-the-art infrastructure being developed worldwide • Evolution of successful distributed delivery models leading to a wide range of IT work being executed from offshore locations

8. Onsite: Various locations (e.g., Netherlands) • Retention of regional business knowledge • Continuity • Local language • Single point of contact Onsite Offshore Nearshore Nearshore: Spain, Canada, Mexico • Easier Travel • Cultural Similarities • Time Zone • Nearshore technical skills to deal with show-stoppage situations Offshore: SE Asia, China, Africa • Lower cost • Resources • Quality

9. Transportation costs for bits are zero

10. On site Nearshore Offshore Strategy and Roadmap Definition Application Development, Integration and Maintenance Systems Integration and Package Implementation IT and BPO Support = Higher Ratio of Resources Organizations determine their desired / optimal global locations for various activities = Lower Ratio of Resources Source: Infosys Framework - Evolution of GDM

13. Salary Cost at Infosys General Salary Levels • Overall a 25% to 35% cost advantage is expected in offshore destinations versus costs in the US • The primary source of benefit is salary, but infrastructure, training and other costs are likely to be higher offshore

14. Security Stability Culture Geography Time Zones Governance & Control Language Legislation Knowledge

15. Distance Matters! (1) • Collaboration over distance is hard… particularly… • for innovative activities • when you need to be close to your customer • when requirements are not well-specified.

16. Distance Matters! (2) Negative impacts of distance: • Slows work • Leads to breakdowns • Increases chance of failure • Increases risks • Requires more oversight, control, governance, travel.

17. (Fabriek, 2007)

18. Shorten the distance(s)! • Balancing the 6 P’s: Paradigm

19. Paradigm • Underpinning Way of Thinking, e.g. • Anglo-Saxon vsRheinländisch • East vs West • Structured vs Evolutionary

20. People • Culture • Coherence • Human, Social and Customer Capital

21. Process • Delivery models • OneTeam • Networked • Front Office / Back Office • Methods and Method Engineering • One way of working… • But tailored to the situation at hand

22. Planet • Sustainability, ecological footprint • Corporate responsibility • Labor environment at offshore locations

23. Profit • Benefits versus costs • Investments in retained organization • Intellectual capital!

24. Products • Software tools • Wiki • Proprietary tools, databases • Hardware tools • Videoconferencing

25. Example of a Product: CPort

26. Questions? Kennistechnologie