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Subcontractor Management
Offshore Outsourcing: The Goods, the Bads, and the
Uglies
Andrew R. Iserson, MS, PMPPMI PresentationJanuary 23, 2014
Agenda
• Why companies go offshore• Picking an offshore vendor• Setting levels of
expectations• What I experienced• What I would do differently in
the future
My Experience
• Systems Development• Staffing in India• Use of two companies
– One large– One mid-sized
Why do companies go Offshore?• Save money?• Save time?• Pick up skills the
organization doesn’t have?• Upgrade processes?• Staff augmentation?• Public relations?
Why Go Offshore: The Goods
• Save Time• Skills you can not staff• Staff augmentation• Public Relations
Why Go Offshore: The Bads
• Save money
Why Go Offshore: The Uglies
• Save time• Skills you can not staff• Staff augmentation• Upgrade processes• Public Relations
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
Picking an Offshore Vendor: The Goods
• Local presence of vendor• Understand why you are
outsourcing• Different levels of vendors
Picking an Offshore Vendor: The Bads
• Good sales people• Will do ANYTHING you want
Picking an Offshore Vendor: The Uglies
• CMMI Level 5
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
Possible Expectations of the Relationship: The Goods
• Easily add staff as needed – sometimes
• Pick up staff with unique skills - sometimes
Possible Expectations of the Relationship: The Bads
• Quality of work is no better than at home
• Need to actively manage the contractors
• On-time???
Possible Expectations of the Relationship: The Uglies
• Cost savings• Communications• Future growth of your
account
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
What I found: The Goods
• Amount of work• Availability of consultants• Confidentiality• Cultural issues• Time differences• Communications
What I found: The Bads• Quality of work• Institutional Knowledge• Cultural issues• Time differences• Communications
What I found: The Uglies• Business model• Legal issues• Cultural issues• Costs
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
Questions?