Establishing collaboration between a nearshore development subsidiary and an offshore outsourcing supplier can present challenges even when the client has an established delivery model for outsourcing projects. With nearshore-offshore collaboration on the rise, a better understanding of the challenges involved is beneficial.
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The success of a project depends on the processes that are followed, the people who execute them and the contractual terms and conditions. This subject is all the more relevant to companies who take up work with little background and experience. Understanding some of the common pitfalls that should be avoided by sellers is essential.
Part 1 of this series targeted head office managers. This article is targeted to offshore center managers. It suggests techniques for them to handle more responsibilities—and make bigger contributions to the company by winning and executing core projects that are complex and challenging.
It’s important to increase the role and responsibilities of head office managers for projects that are offshored. This article is excerpted from the author’s book Leading and Motivating Global Teams: Integrating Offshore Centers and the Head Office.
|A.||You are being “taken” by sales people from your hardware vendors who are behaving like used car salesmen. They quote you a low price to get your management’s approval, but when it comes time to actually install you have to add on many necessary extras you really need that they never revealed.|
|B.||It is probably you and your team if you are only figuring initial hardware costs in your project budget. The total cost of any new installation should be calculated both in immediate costs and in long-term costs over the life of the equipment, including non-tangible expenses. Only then can vendor offerings be fairly compared and evaluated.|
|C.||Management should not expect project teams to be pricing hardware. This should be done exclusively by someone from the purchasing department. Your only role is to install whatever arrives on the dock. In this way, if the costs go up you and your team escape the blame.|
|D.||Since recent costs for information technology (IT) items have quadrupled over the life of the equipment, you should multiply any future vendor contract pricing by four and alert accounting how much cash to have on hand in the immediate future. Always pick the lowest bid, as in today’s market all hardware is basically the same.|
An emphasis on well-controlled clinical trial programs and increased regulatory pressure for more meaningful, clinical data means that medical device companies must develop strategies to expand their capabilities for carrying out clinical trials.
Outsourcing vendors make lots of promises around the cost savings and productivity improvements they can deliver. Are the benefits really that good?
There are many reasons and benefits from outsourcing work. Here are some of the top reasons for looking outside of your organization for expertise and assistance in executing projects.
If you are chiefly looking to utilize outsourcing to save money, don’t be surprised by how much it may cost you to get the talent you need. Here are some of the expenses you may need to swallow in your efforts…
Project management becomes so much more complicated when contracts get involved. If nothing else, it seems to cause so many more project managers (or people who call themselves project managers) to pop out of the woodwork. This should be a good thing, but it can also be an unhelpful complication.