Offshore Outsourcing of IT Work: Client and Supplier by Mary C. Lacity, Joseph W. Rottman

By Mary C. Lacity, Joseph W. Rottman

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The six fee-for-service models are sequenced by the amount of change required in the organization. Staff augmentation requires the least amount of organizational change, whereas BPO requires the most organizational change. Staff augmentation engagements: offshore suppliers supplement clientled teams with supplier staff located on the client’s site or offshore. Bundled maintenance engagements: the offshore supplier works with the client’s IT leads to handle small maintenance items and minor requests for existing applications.

Start-up suppliers around the world are eager to partner with US clients. Heads of PMOs are also advised to hire an intermediary consulting firm to serve as offshore guide to the country, suppliers, and culture. A good advisory firm will also help PMO leaders consider a wide range of sourcing locations, such as rural sourcing and nearshoring (see Chapter 8). The 2007 Black Book of Outsourcing14 identified the top offshore advisory firms as Equaterra, Morgan Chambers, NeoIT, Everest, TPI, Pricewaterhouse Coopers, Ovum Orbys, Stradling Global Sourcing, and PA Consulting.

Since the suppliers needed access to systems from various business units and IT sectors, we had to cross organizational boundaries and create new protocols and rights profiles. However, without these processes, the suppliers sit idle waiting for us to build a tunnel in the VPN. We should have had all these processes in place much earlier than we did. 6. Identify training needs for internal staff and supplier staff PMOs must identify the training needs for internal staff and supplier staff. The purpose of training is knowledge transfer between both parties.

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