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New Articles

11 July 2008
So You Think you Want to Outsource Your IT?
Outsourcing key information technology (IT) functions is becoming increasingly popular for manufacturing companies, but the ultimate decision of whether to outsource still requires an in-depth evaluation of your in-house IT capabilities, notes Melinda Elmowy, vice president of global marketing for CargoWise edi, a provider of supply chain logistics management systems.

11 July 2008
Outsourcing from mid size IT companies chasing India
Global recession has come as a blessing for Indian IT companies as now mid size US IT companies have started turning towards India for their work. Describing this as a golden opportunity for Indian IT companies, Ashish Bahuguna of Bitscape IT Solutions Company said that now Indian companies had opportunity to get the best of their talent in terms of quantity and rate for their work.

07 July 2008
Outsourcing infrastructure applications for SMBs
The promise of rapid time-to-market combined with lower total cost of ownership continues to drive the adoption of software-as-a-service (SaaS) among small and mid-sized businesses. This on-demand or hosted application model delivers significant benefits through quick adoption, reduced IT costs and increased budget flexibility. Better yet, outsourcing allows staff to focus on business-related initiatives rather than spending valuable energy selecting, implementing, and maintaining complex on-site solutions.

 

New Downloads

30 March 2007
Eugene Goland, Tom Grubb, Patricia Fisher -Technology, Vendor Due Diligence and Management OOBP&IAOP
IP Protection: Technology, Vendor Due Diligence and Management OOBP.org and IAOP

04 August 2006
Jeffrey M. Kaplan - Examining the SaaS Alternative to Meet Your Business/IT Objectives
Examining the SaaS Alternative to Meet Your Business/IT Objectives

04 August 2006
Oliver Lewis Houck - What to Expect from Certified Companies:Pros & Cons of Existing Certifications
What to Expect from Certified Companies: Pros and Cons of Existing Certifications

 

New Links

26 March 2007
offshoring.fuqua.duke.edu
2006 ORN survey report: Next Generation Offshoring: The Globalization of Innovation.

02 August 2005
e-isn.com
ISN (India Software Network) is a leading IT research and offshore advisory firm, which helps clients, leverage the offshore opportunity in the IT outsourcing process. Since 1998, ISN has taken a lead in outsourcing procurement & since then developed and maintained a network of quality Indian software & BPO outsourcing service providers.

11 July 2005
Oxford BPO Research
The latest news and research on outsourcing and offshoring.

Small And Large Businesses

SMB
Capabilities: Procurement capabilities
SMB: Capabilities, Procurement capabilities
  • No formal process, can not maintain many relations
  • Low awareness of marketplace
  • Good knowledge of the market space
  • Easy to maintain multiple relations
  • Eco-system of technology partners
  • Educate about the market
  • Market by partners who have direct relations

Capabilities: Legal department and budget for lawyers

SMB: Legal department and budget for lawyers
  • Not common. Primary protection from non-performance – Relations
  • Short contracts
  • Always. Primary protection from non-performance – Contracts
  • Focus on result, not the process
  • Short contracts, focus on content
  • Demonstrate trust worthiness, not compliance to formalities

Maturity: Maturity of IT department (for non-IT company)

SMB: Maturity of IT department (for non-IT company)
  • IT department is rudimental. Need vendor that will take care of the process
  • High, tend to retain the process ownership
  • Wide view on SMB IT needs Consulting service to work starting with business vision Mature and reliable processes

Maturity: Technology used

SMB: Technology used
  • Mostly Microsoft
  • Focus on MS platforms
  • Multi-platform or UNIX

Maturity: Communication preferences

SMB: Communication preferences
  • Personal and direct
  • Formal, Watch out for political consequences, focused on contract and process
  • Make live communications easy. Leave only as much bureaucracy and formalities as absolutely necessary

Size Matters: Relative importance of the initiative

SMB: Relative importance of the initiative
  • 50% of his outsourcing budget. Strategic importance, project must be a success
  • One of 30 other projects of similar size. John is hardly aware of project details
  • Deliver! One failure means a lot!

Size Matters: Organizational maturity

SMB: Organizational maturity
  • Low, not compatible with formal QA systems
  • Level of formalization and suitability for formal QA systems (CMM, ISO) is high
  • Focus on content, do not overload with unnecessary details and formalities. Focus on end result

Size Matters: Planning horizon

SMB: Planning horizon
  • 1-2 years. Interested in immediate conditions of country of choosing
  • 3+ years. Choice of country is strategic, goes before the vendor
  • Be ready for constant change

Size Matters: Availability of industry-standard metrics

SMB: Availability of industry-standard metrics
  • Not available
  • Most metrics can be compared to other large companies
  • Focus in internal meanings and metrics, strive for maximum efficiency

Size Matters: Level of formalization

SMB: Level of formalization
  • Low. Specs are vague
  • High. Detailed formal specs are likely to exist
  • See the big picture; capability to work with little specs; ability to ask right questions, to extract knowledge

Size Matters: Volume of work expected

SMB: Volume of work expected
  • Low, need vendor small enough to get management attention and good resources
  • Need vendor capable to scale up with the next project
  • Take Mark seriously

Size Matters: Concern about public image

SMB: Concern about public image
  • Not concern
  • Concerned
  • Focus on bottom line

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