Managing offshoring programs ... continued
In my previous blog entry I began to explain the changing roles and expectations of Offshoring Program Managers. Before I elaborate on the thread, Radhakrishnan commented if I could explain “offshore programs.” Without using an intricate definition of what offshore projects and programs are, an offshore program is a term I use simply to talk about larger projects and programs with a strong offshore component. The program could be executed by an offshore service provider or at an Offshore Development Center belonging to the same organization/client.
Going back to my thread on the changing paradigm that I am noticing in the market: clients and stakeholders are increasingly expecting vendors’ Program Managers to also manage niche aspects of IT Programs including aspects of contract administration, Relationship and Change Management (areas circled in the figure)
Figure source: my book
Now, I see this as an opportunity area for Project Managers at offshoring firms to scale up. Note: In this context, I am using the phrase opportunity area to take off from a common refrain that my boss, a former CTO, used to have “we don’t have challenges or issues here, only opportunity areas.”
Why do I say so? Because a majority of Project Managers at sourcing firms are really good at one thing: managing projects for their firms and ensuring deliverables to clients. Of course, there are complexities here too as Chetan Bhor points out in a comment:
- Organizational teamwork: Under the framework of such large contracts / complex programs, a company is typically required to provide integrated services including consulting, systems integration, application development, maintenance, BPO etc hence organizational teamwork is extremely important. Dedicated efforts of various COE’s within the company are required, e.g. Horizontal and vertical BU’s
- Strategic thought process – Program managers need to think long term on their Client relationships and get to the next level of strategic engagements
- Crisis management - The fact of the matter is that, in IT projects, mistakes develop into crises much faster than in other areas. Thus, mistakes tend to cost more
Besides the offshoring aspects, managing large and complex IT initiatives involves its unique challenges. Especially if the programs are managed for and with a client. [when I say for I mean done on behalf of the client for their stakeholders] Such programs may:
- Span organization boundaries or even span organization. An example would be the rollout of “Check 21” initiatives by US banks (or an equivalent: TECP by Canadian financial institutions)… Access Service Request (ASR) rollout by several Telcos simultaneously
- Involve multi-vendor and multisourcing scenarios. In some cases, the ‘lead’ Program Manager may be seconded by one of the sourcing firms or could come from the sponsoring organization. Larger projects may also involve sourcing parts of the project to subcontractors and secondary vendors down the chain.
- Complex product rollout: This could include scenarios where there are multiple products being integrated across technology platforms. The programs may involve vendor / product evaluation, product selection, hiring specialists/subcontractors and other configuration specialsists [complexities from the above two scenarios]
- Other scenarios and examples
The challenge of managing complex IT programs, when work is also sent across the globe, includes offshoring challenges: In such ‘typical’ offshore programs, the dynamics are primarily around managing people and processes across time-and-space; and although I say ‘typical’ this is a vast area in itself as you may have observed in the variety of topics I pick for this blog.
There exists a vast body of knowledge when it comes to managing projects, and complex IT initiatives and there are several gurus with gray hair who have been-there-done-it. The know-how for managing offshored projects is also increasingly available in the industry. However, when it comes to offshoring large and complex programs … Let’s just say: there is certainly an opportunity area staring at those who want to be the gurus with gray hair who have been-there-done-it
