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Subcontractor Management Offshore Outsourcing : The Goods, the Bads , and the Uglies

Subcontractor Management Offshore Outsourcing : The Goods, the Bads , and the Uglies. Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014. Agenda. Why companies go offshore Picking an offshore vendor Setting levels of expectations What I experienced

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Subcontractor Management Offshore Outsourcing : The Goods, the Bads , and the Uglies

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  1. Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014

  2. Agenda • Why companies go offshore • Picking an offshore vendor • Setting levels of expectations • What I experienced • What I would do differently in the future

  3. My Experience • Systems Development • Staffing in India • Use of two companies • One large • One mid-sized

  4. Why do companies go Offshore? • Save money? • Save time? • Pick up skills the organization doesn’t have? • Upgrade processes? • Staff augmentation? • Public relations?

  5. Why Go Offshore:The Goods • Save Time • Skills you can not staff • Staff augmentation • Public Relations

  6. Why Go Offshore:The Bads • Save money

  7. Why Go Offshore: The Uglies • Save time • Skills you can not staff • Staff augmentation • Upgrade processes • Public Relations

  8. Picking an Offshore Vendor • Sales people • Will do ANYTHING you want • CMMI Level 5 • Local presence of vendor • Understand why you are outsourcing • Different levels of vendors

  9. Picking an Offshore Vendor: The Goods • Local presence of vendor • Understand why you are outsourcing • Different levels of vendors

  10. Picking an Offshore Vendor: The Bads • Good sales people • Will do ANYTHING you want

  11. Picking an Offshore Vendor: The Uglies • CMMI Level 5

  12. Possible Expectations of the Relationship • Add and subtract staff as needed • Pick up unique skills • High quality work • No need to manage the contractors • On-time delivery • Cost savings • Good communications • (Vendor) Future Acct Growth

  13. Possible Expectations of the Relationship: The Goods • Easily add staff as needed – sometimes • Pick up staff with unique skills - sometimes

  14. Possible Expectations of the Relationship: The Bads • Quality of work is no better than at home • Need to actively manage the contractors • On-time???

  15. Possible Expectations of the Relationship: The Uglies • Cost savings • Communications • Future growth of your account

  16. What I found • Amount of work • Quality of work • Institutional knowledge • Business model • Availability of consultants • Legal issues • Confidentiality • Cultural issues • Time differences • Communications • Costs

  17. What I found: The Goods • Amount of work • Availability of consultants • Confidentiality • Cultural issues • Time differences • Communications

  18. What I found: The Bads • Quality of work • Institutional Knowledge • Cultural issues • Time differences • Communications

  19. What I found: The Uglies • Business model • Legal issues • Cultural issues • Costs

  20. Changes I would make in the future • Be selective on the work sent • Visit more often • TESTING • Understand reasons that you are doing this • Set reasonable expectations

  21. Questions?

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