IT Vendor Management in India

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.

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