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Over the years, as the outsourcing industry has matured, many aspects of the outsourcing model have been improved upon. Despite this fact, countless offshore outsourced projects still fail every year--often due to the fact that project management lacks the proper training on outsourcing methods. Studies show that this is one of the major reasons that outsourced project failures occur, yet it is an aspect of outsourcing that is still oftentimes ignored when considering this model. Project management needs to be trained in order to deal with the myriad of problems that arise when the workforce is in a different country and a different time zone. The project managers must learn to understand cultural differences and how to communicate effectively, as well as how to leverage the time differences, obtain status updates in a timely fashion, and set realistic expectations for their outsourced workforce. These are all critical skills in an outsourcing environment. The project management team must also understand the importance of effective communication, both locally and globally. On a local level, employees need to be briefed on the importance of outsourcing to the company as a whole. An attitude of respect toward the outsourced teams must be instilled, or else the local employees may come to see the outsourced team as an appendage or, worse yet, a threat. On the global level, productivity drops due to communication overheads or confusion over status can cause many projects to fail. Again, effective communication is the key to successfully dealing with the challenges created by time difference and distance. Despite the many challenges, leveraging outsourcing remains a smart business strategy. Training project management on outsourcing alone may not be sufficient to make it work. It is definitely a good foundation.
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August 6, 2007
Did You Train Project Management
Before You Outsourced?
August 6, 2007
Outsourcing and Project Management
• Outsourcing
– A Way of Modern Business Life
– Matured Over Time
• Project Management
– In-house Vs Outsource
– Expectation Management
August 6, 2007
Why Outsourced
• Reduce Cost
• Focus on Core Competency
• Leverage Special Expertise
• Speed-up Delivery
• Relieve Resource Constraints
August 6, 2007
Project Management Challenges
1. Identifying Project to Outsource
2. Selecting Outsourcing Company
3. Cultural Differences
4. Managing Own and Outsourcing Team
5. Multi-site Multi-time zones
6. Communication
7. Issues with Getting Timely Status
8. Cost-to-the-Company
August 6, 2007
Identifying Project to Outsource
• Core vs. Non-core
• Gain Expertise
• Clear Requirements
• Low Complexity
August 6, 2007
Selecting An Outsourcing Company
• Leverage Consulting Companies
• Country Selection
• Outsourcing Company Selection
– Size
– References
– Visit
August 6, 2007
Outsourcing Company Strengths
• Leverage Expertise
• Or Substandard Results
August 6, 2007
Multi-sites and Multi-time Zones
• Long Day Impacting Personal Life
• Day-to-day Issues
• Confusion over Holidays and
Time Zones
August 6, 2007
Cultural Differences
• Honor Cultural Differences
• Develop Relationship
• Study Work Habits
• Cross-cultural Training
• Sensitivity to Social Taboos
August 6, 2007
Trivia
• What is the most spoken language in the world?
• Broken English which includes
– Hinglish
– Chinglish
August 6, 2007
Own and Outsourcing Teams
• Your Staff Reaction
• Filter Noise
• Educate - Importance of Program
• Train - Outsourcing
Methods/Issues
• Travel
August 6, 2007
Communication
• Conference Calls
• Concise Communication
• Questions, Paraphrase, MoM
• Language, Tone
• Watch Out for Cultural Issues
• Technologies
August 6, 2007
Issues with Getting Timely Status
• No Visibility into Risks
• Last Minute Surprises
• Frequent Deliveries
• Extensive Reviews
• Resources and Expertise
August 6, 2007
Cost-to-the-Company
• Hidden Cost
• Currency Movement
August 6, 2007
Conclusion
• Reap the Rewards by
Understanding Differences
between Traditional (In-house)
and Outsourced Projects.
