Friday, May 30, 2008

Bridging the Gap between Offshore Outsourcing Strategies and Execution

Offshore Outsourcing now a day is no longer considered a tactic. High performing companies consider offshore outsourcing to be an important strategy required to gain the competitive edge needed to win in today’s aggressive markets. Usually those companies would have a well defined outsourcing strategy that is intended to align the actions of all individuals, teams and business units to achieve the corporate goals related to offshore outsourcing. But when it comes to execution they can run into trouble – especially during the significant times of business change that happened during the launch of the offshore outsourcing initiative. The reasons for this gap vary by organization, but typically include the following:

  • There may be insufficient executive’s sponsorship for the offshore outsourcing strategies and the outsourcing initiatives, or an organizational culture that does embrace measurement – leading to insufficient measurement of the performance of the outsourcing projects initiates.
  • Outsourcing strategies that are not communicated in a way that employees understand – so they don’t see how offshore outsourcing can benefit them and help there company grow while allowing them to maintain their jobs. Also middle management doesn’t know how to evaluate their business processes to find out which one is most suitable for outsourcing.
  • It’s is unclear who is accountable for ensuring execution of the software outsourcing initiatives, projects and tasks.
  • Incentives systems are not linked to strategy, so individual’s goals are not aligned with the company’s goals. Consequences and rewards for employee’s choices are inapt.

To close the gap between outsourcing strategies and execution, companies need to build strategic alignment across all levels of business. Symbyo Technologies offers IT Outsourcing Consulting services to help you bridge the gap between outsourcing strategy and execution and help your company align its outsourcing initiatives to your corporate goals.

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