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Digg it UP - Minimising Risk in Outsourced Projects
"A foolish cabin owner eventually lost his cabin to the rot that set in through the leaky roof. When it was raining, he couldn't fix the roof. When the sun was shining, he was too busy outside doing other things — and the roof didn't need fixing then anyway."As Yogi Berra would say, "it was d?ja vu all over again." Five years earlier I had conducted a few introductory service/quality improvement workshops for the senior management group and head office support people of a large distribution company.
'CoSourcing'
This is where CoSourcing comes into play. In essence, it is two tier outsourcing, using a third party as a buffer between the highly technical project staff and the (usually) less technically competent client.
The key is in minimising the number of project firsts. The most risk is when the client is outsourcing for the first time, in a new project, with technology they have never approached before. CoSourcing reduces three project firsts to one.
CoSource provides a single interface to many competencies, enabling an approach that can fulfil the entire project lifecycle. Even if some aspects were not
Successful companies concentrate on one foreign market at a time, moving on to the next only after succeeding in the last. Demand and trend are the two key factors that determine which countries to select first and how to set priorities.Market research helps you identify promising markets through objective analysis of available facts and statistics. Its true, many companies start export whenever it receives unsolicited orders from abroad. Although this type of selling is valuable, the company may d
Outsourcing is the process of contracting a third party to do work on the behalf of the client that they have neither the skills or resources to perform in-house. It is usually more cost effective to contract out work than to hire someone in to complete the task in question.
The other benefits include being able to perform several parts of the project in parallel, thus reducing time to market. Taking advantage also of geographic differences in the cost of implementation in IT projects can also help to bring costs down; outsourcing development to countries such as India and those in Eastern Europe, for example, is a common practice.
The benefits do, however, come with some pitfalls. Chiefly among them us the lack of control that is experienced when outsourcing, and care must be taken to be ensure that the gains in cost and time are not lost in over-managing the outsourcing process.
Involving third parties as brokers in these situations can alleviate this risk. In essence, the project management is outsourced to a middle tier service provider capable of arshalling the best capabilities of the open market.
The Risk of Total Outsourcing
The riskiest path to take is that of total outsourcing; placing part of the project entirely in the hands of a third party. This may be because the task is so labour intensive or technical that the client is unable to service any part of the task themselves.
Thus, trust is placed in the experts to produce something which would not otherwise be possible. With that trust comes the additional burden of risk management. The danger is always there that the lack of control will lead to project overruns, and hence higher costs than anticipated.
Since the task is outside the expertise of the client, they can often neither control nor verify that the lack of control is a natural phenomenon. This is compounded by the fact that the contractor could effectively blind the client by the science of the service that they are offering.
In IT projects, this is one of the key risks involved in outsourcing.
Competence Outsourcing
To combat the risks associated with total outsourcing, outsourced projects should stay within the available competence; something which sounds obvious, but really is not. Given that the reason for outsourcing is that the task can not be achieved in-house, the logical conclusion is that it must lie outside available competence.
The paradox is easily solved : hire staff with equivalent, or related competences. This avoids all the issues associated with total outsourcing, but can prove to be as expensive as having the task performed in-house.
The alternative is find a project management team with both technical and non-technical skills. If the task to be outsourced is a single project within a portfolio of business activity, then it follows that hiring permanent staff to perform this function is probably going to be out of the budgetary scope of the company.
'CoSourcing'
This is where CoSourcing comes into play. In essence, it is two tier outsourcing, using a third party as a buffer between the highly technical project staff and the (usually) less technically competent client.
The key is in minimising the number of project firsts. The most risk is when the client is outsourcing for the first time, in a new project, with technology they have never approached before. CoSourcing reduces three project firsts to one.
CoSource provides a single interface to many competencies, enabling an approach that can fulfil the entire project lifecycle. Even if some aspects were not
There are a lot of different ways to make it in business and because of this, there is really no set guaranteed way to make it in anything in life. But one thing is for sure, the more you experiment through trial and error, the more you learn. Usually just starting with the basics can help you do well and set you on the right track. .My advice is all it really takes is some extremely hard work, determination, and a little creativity. The first step is to invest in the knowledge, the second is to abso
Involving third parties as brokers in these situations can alleviate this risk. In essence, the project management is outsourced to a middle tier service provider capable of arshalling the best capabilities of the open market.
The Risk of Total Outsourcing
The riskiest path to take is that of total outsourcing; placing part of the project entirely in the hands of a third party. This may be because the task is so labour intensive or technical that the client is unable to service any part of the task themselves.
Thus, trust is placed in the experts to produce something which would not otherwise be possible. With that trust comes the additional burden of risk management. The danger is always there that the lack of control will lead to project overruns, and hence higher costs than anticipated.
Since the task is outside the expertise of the client, they can often neither control nor verify that the lack of control is a natural phenomenon. This is compounded by the fact that the contractor could effectively blind the client by the science of the service that they are offering.
In IT projects, this is one of the key risks involved in outsourcing.
Competence Outsourcing
To combat the risks associated with total outsourcing, outsourced projects should stay within the available competence; something which sounds obvious, but really is not. Given that the reason for outsourcing is that the task can not be achieved in-house, the logical conclusion is that it must lie outside available competence.
The paradox is easily solved : hire staff with equivalent, or related competences. This avoids all the issues associated with total outsourcing, but can prove to be as expensive as having the task performed in-house.
The alternative is find a project management team with both technical and non-technical skills. If the task to be outsourced is a single project within a portfolio of business activity, then it follows that hiring permanent staff to perform this function is probably going to be out of the budgetary scope of the company.
'CoSourcing'
This is where CoSourcing comes into play. In essence, it is two tier outsourcing, using a third party as a buffer between the highly technical project staff and the (usually) less technically competent client.
The key is in minimising the number of project firsts. The most risk is when the client is outsourcing for the first time, in a new project, with technology they have never approached before. CoSourcing reduces three project firsts to one.
CoSource provides a single interface to many competencies, enabling an approach that can fulfil the entire project lifecycle. Even if some aspects were not
It's Monday, beginning of the workweek and the start of the meeting schedule. Meetings - the bane of corporate existence, but seemingly a necessary evil.Your third meeting of the day is progressing as expected when you become distantly aware the energy of the meeting is fading – as if the actual life-force is being drained.As your own energy wanes, along with your interest, you belatedly realize you’re the victim of the dreaded-Meeting Vampire (vampyrus occursus) S
Since the task is outside the expertise of the client, they can often neither control nor verify that the lack of control is a natural phenomenon. This is compounded by the fact that the contractor could effectively blind the client by the science of the service that they are offering.
In IT projects, this is one of the key risks involved in outsourcing.
Competence Outsourcing
To combat the risks associated with total outsourcing, outsourced projects should stay within the available competence; something which sounds obvious, but really is not. Given that the reason for outsourcing is that the task can not be achieved in-house, the logical conclusion is that it must lie outside available competence.
The paradox is easily solved : hire staff with equivalent, or related competences. This avoids all the issues associated with total outsourcing, but can prove to be as expensive as having the task performed in-house.
The alternative is find a project management team with both technical and non-technical skills. If the task to be outsourced is a single project within a portfolio of business activity, then it follows that hiring permanent staff to perform this function is probably going to be out of the budgetary scope of the company.
'CoSourcing'
This is where CoSourcing comes into play. In essence, it is two tier outsourcing, using a third party as a buffer between the highly technical project staff and the (usually) less technically competent client.
The key is in minimising the number of project firsts. The most risk is when the client is outsourcing for the first time, in a new project, with technology they have never approached before. CoSourcing reduces three project firsts to one.
CoSource provides a single interface to many competencies, enabling an approach that can fulfil the entire project lifecycle. Even if some aspects were not
Never tell people how to do things. Tell them what to do and they will surprise you with their ingenuity. General George S. PattonMany people think they have too many important things to do, but thats not the real problem. The real problem is either 1) you are trying to do them all yourself, 2) you have no way for anyone else to do them, or 3) all of them simply aren't that important.One solution is to shrink the things you classify as important, and that avenue should certainly be your
The paradox is easily solved : hire staff with equivalent, or related competences. This avoids all the issues associated with total outsourcing, but can prove to be as expensive as having the task performed in-house.
The alternative is find a project management team with both technical and non-technical skills. If the task to be outsourced is a single project within a portfolio of business activity, then it follows that hiring permanent staff to perform this function is probably going to be out of the budgetary scope of the company.
'CoSourcing'
This is where CoSourcing comes into play. In essence, it is two tier outsourcing, using a third party as a buffer between the highly technical project staff and the (usually) less technically competent client.
The key is in minimising the number of project firsts. The most risk is when the client is outsourcing for the first time, in a new project, with technology they have never approached before. CoSourcing reduces three project firsts to one.
CoSource provides a single interface to many competencies, enabling an approach that can fulfil the entire project lifecycle. Even if some aspects were not
When an employee gives a two-week notice of resignation, is the company required to honor it? Alternatively, can the employer make the notice date the last day of work?Employers are not required to honor an employee’s resignation notice period. However, there are several issues to consider before making the notice date an employee’s last day of work. However, before making the notice date of a resignation the last days of work consider how it will affect the following.1. Other Employees will
'CoSourcing'
This is where CoSourcing comes into play. In essence, it is two tier outsourcing, using a third party as a buffer between the highly technical project staff and the (usually) less technically competent client.
The key is in minimising the number of project firsts. The most risk is when the client is outsourcing for the first time, in a new project, with technology they have never approached before. CoSourcing reduces three project firsts to one.
CoSource provides a single interface to many competencies, enabling an approach that can fulfil the entire project lifecycle. Even if some aspects were not designed to be outsourced, clients can often find that the CoSource model allows them to find economies of scale within the projects as they unfold.
It is a win-win-win situation; the client enjoys superior service while making a significant cost saving, the contractor saves time in communicating with a technically minded project management team, and CoSource can continue to build on a solid base of experience.
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