Outsourcing IT Development: Monitoring the Six Dimensions
The failure rate of outsourced IT projects is no secret. A research study performed by DiamondCluster International, Inc. (2002), a Chicago-based consulting company, shows that 78% of outsourcing managers are not satisfied with the performance of their outsourced projects. Many outsourced project agreements are terminated earlier than their planned end dates. The most common reason for a manager’s dissatisfaction with outsourced projects is the lack of visibility. Making the project health visible to the stakeholders is the responsibility of the project manager. The role of project manager deserves more importance than is currently given. Project teams in outsourcing companies perceive quality assurance and project reporting as overhead processes. This perception can be changed and the work can be made more exciting by applying TQM (Total Quality Management) and Six Sigma principles. The principles of TQM are: customer satisfaction, employee satisfaction, and continuous improvement. Six Sigma measurements and monitoring can be applied over the TQM principles to ensure predictability and consistency in all aspects of project deliveries. The foundation of these principles lies in the quality at the source and consistency of the process. The six dimensions of SPASQK (Status, Productivity, Adherence, Satisfaction, Quality, and Knowledge) provide robust dashboard
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