Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R....
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Transcript of Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R....
![Page 1: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/1.jpg)
Subcontractor Management
Offshore Outsourcing: The Goods, the Bads, and the
Uglies
Andrew R. Iserson, MS, PMPPMI PresentationJanuary 23, 2014
![Page 2: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/2.jpg)
Agenda
• Why companies go offshore• Picking an offshore vendor• Setting levels of
expectations• What I experienced• What I would do differently in
the future
![Page 3: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/3.jpg)
My Experience
• Systems Development• Staffing in India• Use of two companies
– One large– One mid-sized
![Page 4: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/4.jpg)
Why do companies go Offshore?• Save money?• Save time?• Pick up skills the
organization doesn’t have?• Upgrade processes?• Staff augmentation?• Public relations?
![Page 5: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/5.jpg)
Why Go Offshore: The Goods
• Save Time• Skills you can not staff• Staff augmentation• Public Relations
![Page 6: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/6.jpg)
Why Go Offshore: The Bads
• Save money
![Page 7: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/7.jpg)
Why Go Offshore: The Uglies
• Save time• Skills you can not staff• Staff augmentation• Upgrade processes• Public Relations
![Page 8: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/8.jpg)
Picking an Offshore Vendor
• Sales people• Will do ANYTHING you
want • CMMI Level 5• Local presence of vendor• Understand why you are
outsourcing• Different levels of vendors
![Page 9: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/9.jpg)
Picking an Offshore Vendor: The Goods
• Local presence of vendor• Understand why you are
outsourcing• Different levels of vendors
![Page 10: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/10.jpg)
Picking an Offshore Vendor: The Bads
• Good sales people• Will do ANYTHING you want
![Page 11: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/11.jpg)
Picking an Offshore Vendor: The Uglies
• CMMI Level 5
![Page 12: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/12.jpg)
Possible Expectations of the Relationship• Add and subtract staff as needed• Pick up unique skills• High quality work• No need to manage the
contractors• On-time delivery• Cost savings• Good communications• (Vendor) Future Acct Growth
![Page 13: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/13.jpg)
Possible Expectations of the Relationship: The Goods
• Easily add staff as needed – sometimes
• Pick up staff with unique skills - sometimes
![Page 14: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/14.jpg)
Possible Expectations of the Relationship: The Bads
• Quality of work is no better than at home
• Need to actively manage the contractors
• On-time???
![Page 15: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/15.jpg)
Possible Expectations of the Relationship: The Uglies
• Cost savings• Communications• Future growth of your
account
![Page 16: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/16.jpg)
What I found
• Amount of work• Quality of work• Institutional knowledge• Business model• Availability of consultants• Legal issues• Confidentiality• Cultural issues• Time differences• Communications• Costs
![Page 17: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/17.jpg)
What I found: The Goods
• Amount of work• Availability of consultants• Confidentiality• Cultural issues• Time differences• Communications
![Page 18: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/18.jpg)
What I found: The Bads• Quality of work• Institutional Knowledge• Cultural issues• Time differences• Communications
![Page 19: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/19.jpg)
What I found: The Uglies• Business model• Legal issues• Cultural issues• Costs
![Page 20: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/20.jpg)
Changes I would make in the future
• Be selective on the work sent• Visit more often• TESTING• Understand reasons that you
are doing this• Set reasonable expectations
![Page 21: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/21.jpg)
Questions?
![Page 22: Subcontractor Management Offshore Outsourcing: The Goods, the Bads, and the Uglies Andrew R. Iserson, MS, PMP PMI Presentation January 23, 2014.](https://reader036.fdocuments.us/reader036/viewer/2022062407/56649e6a5503460f94b6870a/html5/thumbnails/22.jpg)