By Mary C. Lacity, Joseph W. Rottman
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Extra resources for Offshore Outsourcing of IT Work: Client and Supplier Perspectives (Technology, Work and Globalization)
We would have just had to spend a lot more of our own time with all of that. ” – Global Leadership Team Member, biotechnology company The intermediary consulting firms are also moving up the value chain by offering offshore project management training to US clients, training joint teams on cultural compatibility, creating transition plans, and developing project metrics. One note of caution, however. Some US clients hired intermediaries who were paid finders fees by suppliers or had family members working as top executives in supplier firms.
From the business users’ perspective, the additional overhead of dealing with offshore suppliers was not worthwhile. In contrast, business users were more willing to allow offshore suppliers to work on their projects when chargeback rates were lowered. The PMO from one financial services firm allows business units a choice for application development. The business units can source IT from three preferred offshore suppliers or from several domestic suppliers. Rates are lower with the offshore suppliers, but risks are lower with the 39 40 Offshore outsourcing of IT work domestic suppliers.
7) offers much greater pathways of communication between the client and the supplier. The network design, used by Biotech on some projects, shows communication taking place between all stakeholders from both the client and supplier organizations. Particularly interesting is the direct link between local business units and the supplier. This linkage offered mixed results for Biotech. 7 The network design project that allowed a local business unit to communicate directly with the supplier to define requirements was successful.