Offshoring 101 For Statisticians Techies And A
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The document discusses different perspectives on offshoring: - For top management, it discusses how to find the right offshoring partner through a request for proposal process, though realities like unclear requirements and consultant conflicts of interest can complicate this. - For middle management, it notes the challenges of managing teams split between onshore and offshore locations, with quality potentially decreasing due to cost cuts. - For lower management, it discusses actions someone may take if their job is threatened by offshoring, like gaining new skills, finding backups, or engaging offshore teams to increase their value.
Offshoring 101 For Statisticians Techies And A
- 1. Offshoring 101 For Statisticians, Techies and Analysts Ajay Ohri October 22, 2009
- 2. Offshoring You will see some form of off shoring DIRECTLY over the point of your career on the next 10-30 years Most likely Offshoring will increase to the point it wont matter if Some people telecommute to their office in same country or Work by Video Conferencing from another country
- 3. Offshoring Economics Good in Macro economics (cheaper consumer goods, better services, more profits to shareholders) and sometimes painful in Micro economics (Unemployment, Wage Freeze)
- 4. Offshoring: 3 Views How to find a right offshoring partner : TOP MANAGEMENT How to work with a part offshore team in Asia and part on shore team domestically : MIDDLE MANAGEMENT How to maintain your own job if your company, skills start getting offshored : JUNIOR MANAGEMENT
- 5. Offshoring: 3 Views How to find a right offshoring partner : TOP MANAGEMENT NORMAL WAY 1) Give a REQUEST FOR PROPOSAL 2) Select top 3-10 vendors ( maybe by asking an offshoring consultant or sending in house trip) 3) Give Pilot projects at Pilot cost 4) Select Vendor 5) Finalize Service Level Agreement ( X % of defects per process/ project) 6) Finalize costs ( Example- We will pay you 14 $ per hour for simple database querying and reporting and we will pay you 300$ per statistical model (new) OR We will take two dedicated employees ( called FTE or Full Time Equivalents) at 3200 $ per month per employee for high statistical work
- 6. Offshoring: 3 Views How to find a right offshoring partner : TOP MANAGEMENT NORMAL WAY ( WHAT REALLY HAPPENS) 1) Give a REQUEST FOR PROPOSAL Requirements sometimes created by people who are leaving need information only known by people who have left. 2) Select top 3-10 vendors ( maybe by asking an offshoring consultant or sending in house trip) Consultants like McKinsey , Everest Consulting etc have alumni within some offshoring companies. 3) Give Pilot projects at Pilot cost Offshoring companies are rarely interested in small projects. 4) Select Vendor After 3-6 months ideally, but business demands instant solutions 5) Finalize Service Level Agreement ( X % of defects per process/ project) Executing international contracts adds in costs which are not predicted. 6) Finalize costs ( Example- We will pay you 14 $ per hour for simple database querying and reporting and we will pay you 300$ per statistical model (new) WAGE INFLATION, CURRENCY FLUCTUATION OR We will take two dedicated employees ( called FTE or Full Time Equivalents) at 3200 $ per month per employee ATTRITION for high statistical work OVERHEADS OVERHEADS OVERHEADS
- 7. Offshoring: 3 Views How to find a right offshoring partner : MIDDLE MANAGEMENT NORMAL WAY ( WHAT REALLY HAPPENS) 1) Half of your team works from India or China 2) You depend on them for work but quality is not as good ( COST DECREASED leads to QUALITY DECREASED ) 3) Cultural Issues What does he mean? TRIPS AND TRAINING What are they doing right now? REPORTS ON RESOURCE UTILIZATION Sensitivities ? LETS not assume ANYTHING 4) Balancing On Shore Team Expectations and Productivity and Offshore Team Productivity
- 8. Offshoring: 3 Views How to find a right offshoring partner : LOWER MANAGEMENT NORMAL WAY ( WHAT REALLY HAPPENS) 1) Your company announces losses and job layoffs. 2) Some people will lose jobs. Some jobs will be offshored. Some people will stay 3)You are told to finish all pending projects and start documenting everything you know WHAT DO YOU DO? GET Multi Platform Skills ( Like Statistics and Business) or lIke (SAS and SPSS and R) HAVE JOB Backups Engage the offshore team so you become an expert in working with them Find a better paying job within the same company or same location Etc Etc
- 9. Thanks