Sam Palmisano said “In the
interconnected world…the work moves to
wherever its’ done best”. Strategic reasons and cost effectiveness have made off shoring a standard worldwide business practice which indeed is here to stay. However, the growing number and complexity of
vendors, geographies and technologies pose considerable financial, regulatory
and business risk to the businesses, if informed decisions and correct choices
are not made. The failure of many off shoring initiatives is attributed to poor
vendor selection and management.
Inadequacies in the selection and
management of vendors can lead to considerate loss of time and money. The services
provided by the vendor may not deliver the business requirements. Vendor
progress may be difficult to monitor and control. Longer response times may occur
due to differences in the time zones between the client and vendor. Off shoring further poses unique risks in verbal and non-verbal communication,
co-ordination, and cultural issues in acknowledging the problems.
India is a dominant player in
offshore delivery and Indian companies are moving up the value chain. As in all
outsourcing initiatives a thoughtful and planned approach is to be followed to
avoid risks. Extensive due diligence is a must to check out the capabilities of
the vendor. Monitoring operational
aspects including vendor performance management, quality and co-ordination between the
client and vendor is also vital. While
most Indian IT services offer quality
services and cost effective solutions, many small and medium companies have
mushroomed which engage in unfair tactics to get the business. They do not
invest in people and hire resources who are not adequately qualified for the job
resulting in poor service quality.
Trends in offshore outsourcing
show that larger companies have reaped the benefits of off shoring while smaller
companies may lack the resources to overcome the initial sourcing challenges. The
support of IT Vendor Management services with experience and an understanding of
the regional conditions will be of great value for inexperienced outsources. Vendor on boarding and compliance, risk and performance management, and leadership are
some of the areas where the right consultant can make a difference.
Much to the relief of Small and
Medium businesses , who are keen on off shoring the IT work to India , a few
Professionals after their long and
successful careers with large IT companies like IBM, Accenture have now
ventured into providing vendor selection and vendor management services . The
companies like Project Management CoE, working out of Bangalore and being run
by professionals with decades of
experience of working on both sides , on and off-site, understands the needs
and challenges better. These companies ensure that the promised service is
delivered with adequate business value. Their stringent vendor selection
process coupled with experience in dealing with regional vendors and expertise
in vendor performance management can help clients in reducing the time, money
and risks involved in initiating and managing offshore vendors. Their business
offerings does not increase total cost of ownership for the clients,
however ensures a risk free delivery.
For
more details visit: Projectmanagementcoe.com
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