13 Great Ways to make your Offshore Project FAIL!
FAIL!13. REVOLTING PEASANTS SPOIL THE BEST LAID PLANS.

This issue of change management is a fitting segues to the last of our ‘thirteen evils of offshoring’ - Stakeholders. But first, stepping back a bit before we get into all that, it appears to us that offshoring projects come in three different flavours:

• WHOLESALE OUTSOURCING; the outsourcing of all or a significant part of a given IT capability involving radical change to the Customer’s organisation and often resulting in redundancies.

• STRATEGIC AUGMENTATION; the creation of a new capability designed to augment and complement an established in-house capability that, in size at least, remains largely untouched.

• TACTICAL ENGAGEMENTS; the ad-hoc addition of new capability to work alongside the permanent in-house team, usually to address specific ‘point’ needs for skills or to deliver more man-power to specific projects.

Each of these different types of offshoring project requires a different degree of and approach to change management. All require some change.

 

A crucial part of managing change of this nature is communication with the various stakeholders who, to a greater or lesser extent, must be enrolled into the process. It's not the right place here to embark on a long treatise about the different approaches to change management but, in short, it is our experience that communication about offshoring usually needs to include a much wider audience than most Customers think. The cultural repercussions can often be felt across a surprisingly wide spectrum of people. You might find those who, despite the fact that they work for a relatively distant part of your organisation, have concerns that result in them taking a negative position. Indeed, in the current climate even people’s political views can influence their view of offshoring and this can create unexpected issues.

Better to be safe than sorry. Draft simple messages and deliver them consistently. Put yourself in the stakeholder’s shoes and consider how the communication will sound when heard from their perspective.

One question we are often asked is the extent to which such offshoring projects should be driven as ‘top-down’ change programmes as opposed to consensual ‘bottom-up’ initiatives. The answer depends to a great extent on the type of offshoring project you foresee. If you are planning a wholesale outsource then you probably have little choice but to work in a ‘top-down’ manner, whereas the other two types can both lend themselves more to a consultative approach with stakeholders.

Having said that, our advice is that, no matter what your technical people say, never assume they are 100% on board. It only takes one rotten apple to spoil the barrel. We have never yet come across an IT function that has engaged in offshoring where 100% of the people were 100% behind the offshoring initiative. Even in the case of tactical augmentations in-house teams may see the offshoring as the ‘thin end of the wedge’. “If this projects succeeds what is to stop them doing more, it will be our jobs next”. Staff often seem to assume that once started, offshoring is an inevitable one-way street to the virtual organisation where everything from software development to car-parking space allocation is outsourced to unfamiliar faces working in some far-flung corner of the globe.

These communication and enrolment issues can always be addressed even in the most extreme situations. Again, find a supplier who can add value here, a company who have credible experience in helping their Customer navigate this rocky terrain.

 

CONCLUSIONS.

Well, here we are at the end of our journey through the 13 best ways to really ruin any offshore outsourcing initiative. You may have already identified with many of them, or maybe the complexities we've mentioned have put you off totally.

The important thing to remember is that, in spite of all the potential difficulties, outsourcing and offshoring in particular, has and will continue to offer many organisations significant, very real and tangible benefits. What we’ve tried to do in this paper is to underline some of the issues that you might face. The ‘gotchas’ that often trip people up. Regardless of your experiences in offshoring, we hope at least we have given you some food for thought and that perhaps, in the process, we can help you to get it right first time – after all, when it comes to hangovers, prevention is always much, much better than cure!

Missed previous Great Ways episodes?

View more Great Ways: 1 & 2 | 3 & 4 | 5 & 6 | 7 & 8| 9 & 10 | 11 & 12 | 13

Learn how to avoid all the mistakes of those that have tried and failed...

The tips above are taken from my paper '13 Great Ways to make your Offshore Project Fail'. If you'd like to receive the 13 Great Ways White Paper now then please just complete the free enquiry form on our web site by clicking here or call 08 456 210 278 and we'll send you a copy of the paper free of charge (perhaps there is a free lunch of sorts after all!)

Arrk Group is a UK headquartered, award winning global IT services company specialising in the design, build and ongoing operational management of complex and secure web and mobile applications for both Independent Software Vendors and end user organisations. Established in 1998, our unique position and experience provides us with a deep understanding of the offshore services market. We recognise not only the benefits but also the pitfalls and limitations of the offshore phenomenon. This sensitises us to the difficulties often faced by organisations that are relatively new to offshoring and enables us to offer Customers prudent advice on a global service delivery strategy that delivers the best balance between risk and reward.

(C) 2009 Arrk Group
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