Managing Offshore IT

Following is my response to MM's Query descirbed in my blog yesterday.  

Hi MM,

Now, putting me in the spot. ;-) I will try and address some the best I can and. In return, may mask your query and also use in my blog?  

I think you have two key challenges on hand:

a) Process vs. Speed: You state this in two ways: “My approach is, get it working now, and if need be provide a long term solution following that.” …. “They are focused on the process and the response is some what slow.  It would be totally improper for me to state that they are doing it purposefully.  The intention appears to be proper solution and proper solutions take time.  That’s exactly what onsite/customer facing teams don’t have the luxury of.”

b) Communication challenge: You state “The other part of our Indian culture is the way we communicate.  We more or less say yes to everything when asked.  Not everybody does, but I think we are shy of saying no to somebody”

I think that the first problem – a) - is due to lack of empathy of the business context among developers. The challenge could be magnified when some (junior) developers are not as business-sensitive.

The second is a common observation on Indian developers, especially exhibited by those just starting a career in IT. Perhaps goes to the ‘heart’ of the textbookish “Indian culture” However, it is for us to recognize that there is  nothing wrong here, they are just different.

In my experience, I have observed that it is best to be candid with developers about the kind of challenge you (the manager) are facing. However, being candid and ensuring that they get the message ‘right’ would require some tact.

I gather that you are traveling to India. I would suggest that it is time for you to experiment on a softer aspect of management in person. I would suggest a planned “lunch and learn” session in your case. [even Indians would love a ‘FREE’ lunch, right?] For this, you may have to invest about half-day. Here are some eclectic thoughts:

• Get other senior managers and team-leaders on board before the session. If possible seek help from your HR representative for soft-skills inputs
• Ideally try and get a section of learning video on a typical warehousing problem on hand…perhaps one where the Ops/Supply Chain Director is talking about his customers waiting for crucial parts not being shipped … because the system is down…due to a bug (I’m sure you have such a video or can google one).
• Begin your session with the video clipping and then talk about how the product that your team is supporting helps clients and users like (Mr/Ms. X in the video).
• Bring in the aspect of how it is perfectly okay for a team member to disagree and “say no” if a delivery cannot be reasonably met.

I know what I am suggesting is easier said than done. But what have you got to loose (except about a few hours and a free lunch? … plus some time to plan it out) And do write back.

Cheers, Mohan

Additional eclectic reading list:

I had briefly touched on the topic in my earlier blog: Ramblings on cultural sensitivity in offshoring. I have also delved into the topic in my book [Check out an abstract]

You may just google on third-party consultants providing insight into doing "Business in India' Blog: "Culture Matters: Navigating India's Holidays" The author has collected articles on the topic at a website . It will be interesting to see the viewpoints published in "International Journal of Indian Culture and Business Management  (IJICBM)" in the near future.

Not surprisingly, even the mainstream media in Europe and America is observing the trends closely. For instance, the recent article in Financial Times looks at "Infosys - Programmers’ passage to India"[Blog link].  India's New Faces of Outsourcing in Washington Post makes for an interesting read....though one wonders about the viewpoint of an Indian-American, Boccasam, quoted in the article:

Beyond the cost advantage, Boccasam values a certain skepticism he finds inherent to Indians. "It doesn't matter if you are buying vegetables or dining at a five-star hotel -- you will always count your change," said Boccasam, who attended the University of Pune and immigrated to the United States in 1988. "That's an auditing function. The guys in India know every scam there is out there."

On such views, I shall reserve my judgement.

Posted by Mohan Babu K. at 02:55 PM | Permalink | Comments (1) | TrackBacks (0)

Here is a recent exchange of thoughts with an old friend who is with a large software products company that has an Indian subsidiary development center. I will try and mask his identity. ..except add that MA is a Non-Resident Indian who has spent about a decade in the US.

The first part of this blog deals with the problem on hand. I will provide my comments to MA's query in my next blog entry. Do feel free to chip-in with your comments.

Hello Mohan
How are you doing?
I happen to be playing a small role in a project that gets technical development/support in India for a project in Australia.  The understanding from my counterparts in the Australia world (and others) is that, given that I’m an Indian, I do understand the culture of the people over here in India and would make things easy to deal with.  Also, it would be easier to co-ordinate things both in terms of lingual and other commonalities.  Obviously, given that same thought, I assumed the same should be true.

Posted by Mohan Babu K. at 02:46 PM | Permalink | Comments (0) | TrackBacks (0)

I was at a networking event recently where IT managers and Project Managers (PM) were talking about core issues and challenges. For IT managers, the challenges were strategic -- aligning IT focus with business strategies and roadmaps -- and operational. For the Managers from the “sell” side of sourcing (vendor organizations), the challenges were primarily “resource” focused.

During the icebreaker, when the facilitator asked us to name one challenge, it was interesting to see a variation of same problem repeatedly stated:
 “The client’s team needs five additional .Net developers, but….” Or
“The team has been looking for a strong Tandem expert for nearly a month”

And it was not just managers who were lamenting over the challenge. It was interesting to see a senior architect from a consulting firm state his top challenge was to help the client find good J2EE Architect, who had a background in SOA, integration and mainframes….again a resourcing challenge.

These ‘challenges’ were similar to a query posed to me by a member of the audience at the recent PMI Dinner event where I was giving my invited talk: “do you get into situations where client expects you to have all the skilled people they need because you are such a large organization?”
My answer began with Yes, but…I went on to explain that this is a challenge that most, if not all, software service firms face. And the challenge not unique to offshoring.  There are tactics managers use to mitigate such ‘challenges’

• Planning and forecasting: this is a basic technique adopted by most managers who try and keep an ear on the ground on impending requirements and feed back to their firm’s planning. Such planning also mitigates the element of surprise when a request materializes.
• Managing expectations 1: Software vendor’s PM’s who are the front-line client engagements are also responsible for managing expectations. This includes setting the right expectations and ensuring that they can walk-the-talk when it comes to it. For example, in multi-vendor scenarios having the courage to walk away from client requests for people with obscure skills when managers  realize that the competing vendor may be able to satisfy the client’s needs (easier said than done, right?)
• Managing expectations 2: Another dimension to managing expectations is in helping the client redefine the ‘resource’ requirement. Admitted, this would require a deeper level of client relationship. For example, if the client is asking for a “good J2EE Architect, who had a background in SOA, integration and mainframes,” one could probe further on the nature of the task and requirement. It may turn out that a “good J2EE Architect, who had a background in SOA” could guide another senior mainframe developer in developing the solution for the client.

Now, you could get me started on where I would find a “good J2EE Architect” AND a “senior mainframe developer” and whether this is a more expensive solution for the client. Well, I did say that it was about managing the expectations, right?

Also agreed that the few eclectic thoughts in this blog focus just on the tactical end of the spectrum. On the strategic side comes a whole gamut of landscape and environmental scanning, enterprise planning, forecasting, training and talent management and development, recruitment etc, topics on which entire books have been written.

For those curious, senior management at Infosys is certainly aware of the challenges. For instance BG Srinivas in his blog entry from Davos talking about “It’s time to refocus on the employee”  says
“While talent management per se is the key issue businesses grapple with, organizations are made by people. Irrespective of the fantastic systems and processes that organizations build, it is the individuals who make it happen.”

Posted by Mohan Babu K. at 10:38 PM | Permalink | Comments (0) | TrackBacks (0)

It is interesting to see CIO Magazine rank “Offshore Project Manager” among the hottest Jobs in Information Technology. The author describes the offshore PM's job as “A U.S.-based manager who plans, oversees and coordinates projects with offshore components. The manager, who may work for either a domestic company or an offshore one with a stateside presence, ensures that offshore vendors meet project requirements. As more businesses outsource work overseas, these managers are in high demand.”

I had blogged earlier about the attributes that Offshore Project Managers should possess…and of course focus extensively on the topic in my book [Offshoring IT Services]. The reason why an Offshore Project Manager's job is hot is not hard to see. As the CIO magazine article, quoting a consultant Eugene Kublanov states “There aren’t many folks that can meet the job’s profile, which is why they’re highly coveted”

There is definitely a strong trend towards leveraging the Emerging Global Labor Market For instance, the recent report by the Software & Information Industry Association (SIIA) focuses on how Software companies are increasing offshoring work.

A News.com article focusing on this report states “While responses were confidential, the survey was sent to software companies on SIIA's membership list, which includes Sun Microsystems, Oracle and IBM. Executives from 114 companies responded to the survey.” It is interesting how 68 of the 114 companies responding to the survey have offshore operations.

What does it mean to those of us in the IT industry? If you are a Project Manager, get Offshoring experience. And if you are just starting off – regardless of whether you are in the east or west -- make sure you get the right global experience.

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I had an opportunity to network with Executives and Managers from Southern Ontario prior to my dinner presentation to the PMI chapter members. As we sat down for dinner, the topic at our table shifted to the books we had read recently. Before I volunteered my favorite book, Thomas, an IT manager sitting beside me asked if we had read the “World is Flat,” authored by his namesake, the New York Times columnist. At he began to describe his opinion of the book, the anecdotes and illustrations, the discussion became really animated. 

I was tempted to pitch-in with my two cents…talk about the implications for hi-tech professionals and managers, about my review on Amazon, but decided to reserve my viewpoints – and energy -- for my after-dinner presentation. And thanks to Thomas… and Friedman, I got a good segway to introduce the topic.

My talk to the audience, wasn’t about Friedman’s book or even "flattening" but about the implications of offshoring and the tools and techniques available to IT managers as they embark on the sourcing journey. In the audience, there were lot more managers from the “buy side" than from the vendor side. The questions were around the cultural dynamics, communication and managing across geographic boundaries.

One gentleman was curious about how “innovation" could be offshored. We started debating on the “processes" involved in innovation and how most of it is an evolutionary process-of-improvement rather than a revolutionary “eureka" moment. The research that leads to innovations in processes and adopting new tools and techniques involves scanning the landscape analysing published research, benchmarking other best-practices …. Activities that can be done in the “background." And if it can be done in the background, can be done offshore; right? (More about my views in a whitepaper I am currently co-authoring).

Interestingly, bloggers have started posting viewpoints around globalization of innovation. For instance, Arun makes an argument in his blog talking about “Indian Style of Innovation and Intellectual Property Creation". Of course, R&D globalization strategy of tech leaders Google and Microsoft's are also being closely observed. 

What are the implications of globalization and flattening on Project Managers? Steven Rollins succinctly summarizes it in his article on PM Forum, stating:
“The project management profession has been well documented in its cost-benefit value to innovation initiatives. It has been learned that standardization of rigor and discipline can result in less risk, less time of effort, more speed, and can improve the "flatness" of "getting it done." The PMI® Project Management Body of Knowledge (PMBOK® Guide) has become the standard against which we all measure project management value."

Posted by Mohan Babu K. at 01:13 PM | Permalink | Comments (1) | TrackBacks (0)

There was a small headline recently announcing a Performance Monitor Study that gave “Top Ranking for Infosys by ADM clients” The news reads:

* Tops goal attainment index
* Clients say Infosys is best in four categories
* Ranked above industry average in all 12 categories

For deeper insight into the relative strengths and weaknesses of 11 leading Application Development and Maintenance (ADM) service providers, Performance Monitor Opens in a new window gathered inputs from 864 of their clients. Each participant assessed 12 performance criteria across their ADM project lifecycle, identified the types and frequency of problems they experienced, and evaluated provider performance on goal attainment.

A big kudos goes to the unsung legions of Project Managers and delivery leaders who ensure success of every single ADM…time after time. Of course, it also helps that they have the organizational tools and best practices at their disposal. Why do I blog this today? Because, this will be the topic of focus during my Dinner Presentation to the PMI Lakeshore Chapter tonight.

Posted by Mohan Babu K. at 02:47 PM | Permalink | Comments (0) | TrackBacks (0)

I was mulling over Prof Murugesan’s blog entry whether "Sourcing -- should be out or in?" The Prof. adds that the choice seems to depend on "the capabilities and attitudes of people, the business practices used, and the culture and relationships of the participating companies." 

The launching  point for Prof Murugesan’s argument was the article in The December 2006  issue of Cutter IT Journal that starts off arguing that "outsourcing may no longer be an issue primarily of cost, but rather one that involves a more complex set of business issues"

While reflecting on that viewpoint, I came across Nicholas Carr's views revisiting his "IT Doesn't Matter" theme. Carr has been blogging a series of articles on the topic, which make for an interesting read. In one writeup he concludes by saying "Now that IT has become the dominant capital expense for most businesses, there’s no excuse for waste and sloppiness." 

Though Carr doesn’t really say in so many words, he is perhaps coming from the "core competence" angle where he hints that managers are better at focusing on their organizational core competence while sourcing their non-core IT to vendors who could provide economies of scale and operations. In a sense, he is perhaps eluding to a kind of flattening of business world that global service providers are successfully offering?  To this, Vinnie Mirchandani, a former Gartner analyst argues that

IT does not matter. Quit beating on the 15% tail and focus on the 85% that is spent on vendors. I mentioned this to a sourcing exec recently - and she lit up. So the biggest single skillset IT really needs is vendor management, not architects, not DBAs - she asked.

What implications do these emerging viewpoints in IT management have for those managing Projects and Programs, especially offshored ones? A lot…especially for managers working with stakeholders who build business case for newer technology initiatives...or for those proposing that "non core" activities be sourced. [now what does "non core IT" mean in your context?]. On the sell-side of the spectrum, managers responding to proposals for sourcing work need to be aware of such emerging viewpoints to ensure that their proposals resonate with the business drivers. 

Footnote: A few years ago, Nicholas Carr's article titled "IT Doesn't Matter" generated a lot of
debate among managers and executives. Needless to say IT executives were perplexed and up in arms against the argument, especially since the message from business leaders was clear: IT (systems and innovations) did matter. I too had my viewpoints on the topic at the time

Posted by Mohan Babu K. at 10:15 PM | Permalink | Comments (0) | TrackBacks (0)

While many executives in developed nations think of outsourcing IT services and business process operations as a way to cut costs, global experiences show that outsourcing initiatives don't always yield the expected outcomes or values. Organizations and senior executives must address many factors when deciding where best to source IT or other services.

The December 2006 issue of Cutter IT Journal   attempts answer the pressing question, “Sourcing – out or in?” and examines from different perspectives the pros and cons of outsourcing and insourcing.

The discussions in this issue start with premise that “outsourcing may no longer be an issue primarily of cost, but rather one that involves a more complex set of business issues,” and highlight the following:

§       "When outsourcing, the relationship between client and vendor has to reflect the role of the outsourced service,” and outsourcing a strategic project calls for additional caution.

§       "Outsourcing is neither simple nor a transaction -- it is a complex strategy for managing the delivery of services. The relationship should be part of that strategy, not an unintended consequence of executing a contract."

§       Key factors in building and managing these relationships include communication, culture, planning, behavior, and measurement.

§       Cultural fit is a critical success factor in outsourcing deals. “Differences in corporate culture and business priorities were significant factors in the ultimate project failure in the new outsourced environment” of a of a previously successful software development project. Even though many of the project personnel remained the same -- as the team was transferred to the outsourcing company -- the new corporate environment helped contribute to the failure.

§       Decision to insource or outsource “is more likely to be driven by availability and the ability to train and retain qualified human resources and coordinate work than by other factors." Most often it depends on the skills, strengths and weaknesses, and experience of people -- both the client’s and the supplier's.

The articles in this issue provide suggestions for how executives can go about making decision on sourcing IT services and share some experiential knowledge. A common key theme in these articles is that “regardless of which way you might go, the governance considerations are usually larger in scope and magnitude than most companies estimate.” Other themes are: “outsourcing initiatives are not necessarily easier, cheaper, faster, or better than insourcing” and “consideration of core business attributes is a fundamental decision factor.”

Critical success factors include achieving excellence in the areas of communication management, cultural management, and delivery on commitments.

Now back to the question, “Sourcing -- should it be out or in?” The choice seems to depend on “the capabilities and attitudes of people, the business practices used, and the culture and relationships of the participating companies.”  

Perhaps a simple answer is, neither “out” nor “in,” but the both – “Sourcing: Out and In” – as the Guest editor and consultant David N. Rasmussen, concluded.

What is your answer? We look forward to yours.

 
 -------

San Murugesan, Professor, Southern Cross University, Australia

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I was skimming through John Ribeiro's recent Infoworld article and began pondering over the points raised where he talks about how IBM's SOA centers in India and China are driving nimble services. The author argues how IBM is taking the promise of SOA reusability a step further: setting up SOA Solutions Centers at Pune, India, and Beijing. Their charter: to identify and create composite business services that can be reused by other customers in the same industry.

The article made for interesting reading, especially the trends in globalization of innovation and R&D can be seen in many large service organizations, including Infosys.

There is a distinct parallel to John’s article and the recent Business Week blog entry by Steve Hamm who makes a mention of Infosys’ research where he says “The company uses a tool it created, called InFlux, which captures a client's business requirements and transforms them into an IT plan. The company last May started holding day-long customer innovation workshops, one-on-one with a customer, where it listens to what the customer wants to do with its IT and business processes and then tries to come up with projects where the two sides can co-create solutions for the customer.”

Even the technologist-blogger Sadagopan calls out such "disruptive technologies" in his recent blog predicting trends for 2007: "Offshore majors would work on coming out with a viable approach towards offerings centered on disruptive technologies like SaaS. Global majors may work hard to demonstrate better value add to their customers leveraging their offshore presence."

The implicit message in all these viewpoints and blogs is very clear: Learn to leverage innovation and R&D from global players…(or be left behind?!)

Posted by Mohan Babu K. at 03:40 PM | Permalink | Comments (3) | TrackBacks (0)

I was at a client meeting a few days ago when the onsite manager said something like “our offshore architect” is helping with the design. To that, the client’s manager, Bob, quipped “we all refer to each other by name here. What about your offshore architect; what’s his name?”

Interestingly, Henry Jenkins makes exactly the same comment on my blog post too.

Agreed, the mindset among some managers is to refer to people allocated to their projects as “resources” …needless to say, they too are “resources” in the eyes of their managers and so it goes up the chain-of-command.

Now, one could argue that this is not just an “offshoring” issue but an “IT services” organization culture, and probably has its origin to the time before software services took off in the industry. Students of Management, and MBA courses are taught about the “basics of business” in terms of the building blocks used : land, labor, capital and entrepreneurship. Business graduates start assuming that they are the “entrepreneurs” and that everything (everyone) else at their disposal is a “resource” …

Well, another argument here is the term “resource” stems from “human resources” …and yes, most organizations do focus on their “human resources” …

Whatever the argument, I would tend to agree with Henry and not Shakespeare …
“A rose by any other name would smell as sweet,” But no, calling Mohan just “The Onsite Guy” or Shyam “the offshore resource”  would not cut it. Right?

Posted by Mohan Babu K. at 01:16 AM | Permalink | Comments (1) | TrackBacks (0)