Don’t make any assumptions
Although some experts espouse that the offshore IT market cannot deliver what it promises, the reality could not be further from the truth. To be sure, every market has its share of failures. But today’s offshore IT market has matured to the point that there are many offshore IT companies effectively supplying key services at high value. According to Andy Rowsell-Jones and Chuck Tucker at Gartner, offshore IT services are particularly appealing because “apparent cost, quality, flexible scale, and time-zone advantages appear more compelling than domestic alternatives.”
The stereotype of poor service from offshore providers exists because, in the past, businesses outsourced specifically to cut costs. Today, managers focus on driving revenue and increasing value. In today’s global market, low costs alone cannot meet their long-term objectives. In fact, high-quality offshore partnerships help to solidify an effective position in the global economy.
The current economic climate is forcing businesses to revisit their budgets in creative ways. Every department is being pushed to do more work, either with no increase in budget, or with a reduced budget. IT departments are not immune to this trend. The managers that survive the recent economic downturn will solidify their place in the global market, drive value, and increase ROI with their IT service delivery models.
Not your father’s IT provider
It is important to remember that, as countries become more integrated into the global economy, the offshore industry has grown to fulfill specific needs of individual organizations. This maturity of the market results in a better value for purchasers today. Choosing the right offshore provider can increase your ROI and yield high-value results.
- They come in many sizes
The current size of the offshore provider, and their current growth plans will contribute to, or subtract from, a successful business partnership. Companies that work well together are of similar size, and have similar plans for expansion. The good news is that the maturity of the market means there are plenty of companies to choose from.
- They speak many languages
Companies that clearly explain their expectations from the beginning of the relationship will have great success with an offshore provider. Management needs to be clear about finding a technical language and skill set that fits within existing infrastructure.
- They have varying levels of sophistication
Experience within specific industries, areas of expertise, and depth of their team—these are all variables that need to be examined closely. The new team needs to merge seamlessly with expectations.
- They come with a spectrum of price points
The lowest bid can sometimes end up costing the most time and capital. There are companies that will agree to do anything you ask, and come in with an unreasonably low estimate for providing the service. While these low prices may seem appealing initially, you have to consider the long-term implications of the deal.
An excellent example of choosing a business enabler is Wipro’s work with Honeywell, which has allowed Honeywell to improve services and concentrate on strategic goals. Wipro effectively integrated a wildly segmented enterprise network, improving the speed and fidelity of key services. In their white paper, Wipro cites a 24% improvement in schedule fidelity, and Honeywell rated the company a 5/5 in satisfaction.
Hire a business enabler that is right for you
Outsourcing key business components is not the same thing as choosing a new software suite, or developing new hardware specifications. You don’t buy it, install it, and forget it. It’s more like hiring a new employee, albeit an employee that lives and works several thousands of miles away. And as the hiring manager, you’ve got to examine and manage long-term, hidden reductions to your ROI, and leverage the relationship to solidify your place in the global market.
Moving IT outsource providers from low-cost vendor to true business partner is easier than ever, with a more mature and complex market. But this is only part of the equation. By approaching your relationship as a hiring manager, rather than a prospective renter, you can increase your overall ROI and bottom line.
The good news is that there are more sizes, shapes, and versions of global partners to choose from than ever before. And like the current hiring market, there’s no shortage of companies looking to work with you. But with these choices come even greater responsibility to do your homework before hiring. Like a key employee, you want to establish a long-term relationship that will produce positive results.
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For more information, please contact Infocrossing at 866.779.4369.
