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Friday, 25 July 2008 |
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While it is beyond the scope of this article to identify a detailed checklist for evaluating outsourcers, their alternative solutions, and their contracts, I believe the following criteria can be the basis for you developing your own framework for evaluating and selecting outsourcers/outsourcing companies (including some typical questions): 1. Commitment to Outsourcing: outsourcing is unique and in many ways requires expertise above and beyond typical system integration services. It requires specific methods and experience. - How long has the company been in the outsourcing business?
- How is their company organized in terms of staffing, commitment to specific customers and industries, dedicated to solving specific problems and needs? What percent of its revenue (and profits) comes from outsourcing?
2. A Flexible and Proven Methodology/Function: due to the short time frame that will be available once the outsourcer takes over your IT business, there will be little time to find your way through the quicksand of technical and management issues. A flexible and proven methodology will provide your outsourcer the necessary base and the tools to create an environment that will meet your specific needs. - Do you/they have a standard methodology? Is it fully documented? To what extent is it used?
- Has it been used successfully in the past? Where has it proved unsuccessful? Why?
3. A Pathway and Access to Talent: Executive management, project management, programming and testing talent is key to any solution. The ability to bring in expertise (or at least a number of smart bodies during critical periods) will be crucial. This is especially true if you may need off-shore designers, programmers, and testers who are usually less expensive and more familiar with older technologies you may have (e.g., it is estimated the correcting millennium problems in the U.S. will cost $1.00 - $1.65 per line of code - but perhaps up to only half that amount in India, Ireland, and the Caribbean). - How big is the outsourcer staff in terms of: consulting staff? Analysis staff? Design staff? Programming staff? Testing staff? Documentation staff? Implementation staff? Help desk? Knowledge in terms of mainframes, customer server, telecommunications, etc.?
- Does the outsourcer have a relationship with off shore or domestic programming "factories"?
- How does the outsourcer accomplish training and integration of staff?
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Friday, 25 July 2008 |
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Source: www.business-standard.com Words like business process outsourcing (BPO) and offshoring may not exist in the IT dictionary by 2015. Substitutes like business service outsourcing and global delivery model (GDM), necessitated by the changing business model of IT firms, are likely to replace them over the next seven years. "In five to ten years, you will see a dramatic change in the way people are serviced. Who will care from which location they are being serviced? A large number of processes will get globalised. There will be more automation. Companies will reinvent themselves every six months, and IT will be further embedded in their processes. The BPO sector, too, will be providing end-to-end business services. In fact, there may be no such word like BPO or offshoring," asserts Nasscom President Som Mittal. Sudin Apte, senior analyst with Forrester Research, concurs and predicts there will be two types of players by 2015. "You will have five or six large players with multiple lines of services across low-cost delivery centres," he says. These players will comprise both Indian players like Tata Consultancy Services and Infosys and multinationals like IBM and Accenture. These firms will have thousands of workers in different geographies, and be servicing many industry verticals. Forrester referred to them as Billion-Dollar Babies 18 months ago. Today, they lead over the rest of the offshore vendor pack by a widening gap of almost a billion dollars. Currently, TCS, Infosys and Wipro contribute more than 46 per cent of total IT services export from India. |
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Source: computerworld.com.my Collaboration to expand local talent pool for shared services. The Malaysian branch of CIMA (The Chartered Institute of Management Accountants) and government agency Multimedia Development Corporation Sdn Bhd (MDeC) have agreed to collaborate and promote Malaysia as the Shared Services and Outsourcing (SSO) hub for the banking and financial services sector. Under the recent agreement, employees of MSC Malaysia SSO companies will initially undertake the CIMA Certificate in Business Accounting (CBA), leading to the CIMA professional qualification in management accounting after successful completion of CBA. MDeC will support the employees who are keen on pursuing the CIMA qualification while CIMA will provide the training expertise. MDeC chief executive officer Dato’ Badlisham Ghazali said: “As part of the Get IT Certified Campaign, launched earlier this year, the MSC Malaysia Capability Development Programme (CDP) has actively sought to collaborate with industry partners, like CIMA, to encourage ICT professionals and MSC Malaysia Status organisations to enhance their capabilities and competitiveness through human capital development.” CIMA Malaysia divisional director Puan Sopiah Suid welcomed the opportunity to support MSC Malaysia SSO companies and said: “Employers worldwide value the CIMA qualification for its solid grounding in financial management and business management.” |
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