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Tracking Outsource Development Projects |
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Developing detailed KPIs is simply not effective for outsource development projects. They don’t offer any insight into the development process and therefore provide false information as to how the project is proceeding. Tracking development projects is best done on a granular level. It is true that the granular data can rollup into an overall progress figure but measuring this as a KPI will not accurately track a project. A better strategy is to break the overall development into smaller iterations and track the progress of each one. This not only focuses the mind of the vendor in regular deliveries but allows overall issues in the project timeline to be flagged early. If you navigate to the Download section of this site you will find a spreadsheet that allows the easy tracking of tasks and can be rolled up into an overall projection of the estimated completion date. Smaller organisations that want to outsource and don’t have the resource to invest in a dedicated project manager for each project can benefit from this approach. At a single glance the health of an iteration can be determined and steps taken to rectify issues initiated. This means that multiple small projects can run concurrently managed by a single PM.
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CIO Insight - IT Outsourcing Stats |
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CIO Insight offers a presentation of results from a survey regarding IT outsourcing.
It is interesting to note that although many of the largest companies thought that outsourcing was overrated as a cost saving strategy the largest organizations continue to outsource (72% have or will outsource this year)
The main reason for outsourcing is identified as freeing up resources for all but the largest organizations. This is a paradox for large organizations when you consider that all sizes of organizations consider cost savings to be overrated and that the total cost of outsourcing is more expensive that doing the same function in house.
When outsourcing fails, the results point to the fact that "management lacks skill at overseeing outsourcing vendors" (55%). That's followed by cultural/language barriers (49%). This parallels with other research findings. Ongoing governance is the area of least investment but the area which causes impacts the relationship greatest.
You can find the full presentation here.
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Study: IT outsourcing services multiply |
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The report, conducted by market research firm IDC, says a new crop of competitors are challenging computer service giants like IBM and Electronic Data Systems (EDS) with low prices, specialized expertise, and advanced technology.
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Infosys Chairman N.R. Narayana Murthy talks outsourcing |
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Despite lingering anti-outsourcing sentiment in the U.S., Infosys Chairman N.R. Narayana Murthy tells CNET News.com's Charles Cooper why the momentum behind this global trend is far from spent. The interview took place in Fremont, Calif., on May 2, 2006.
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It is apparent that many organizations today are making the decision to outsource. In today’s global marketplace outsourcing has made itself accessible to many organizations on a national and international level. Offshore outsourcing has provided many businesses with the opportunity to harvest the benefits of lower labor costs in developing countries with few workers rights laws and to exploit the value of artificially manipulated foreign currencies, where the exchange rate is intentionally undervalued. Through outsourcing, companies today have the ability to develop competitive strategies that will leverage their financial positions in the ever competitive global marketplace.
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