GLOBAL DELIVERY MODEL AT INFOSYS
1.1. What are the key challenges in offshore projects and how does GDM address those? * A globally dispersed workforce creates challenges in communication, which GDM addresses through process structure and tools such as video conferencing, and integrated software for tracking progress, billing, timelines, and deliverables. * Turnover is inherently high in the offshore model and this can cause a brain drain or lack of organizational intelligence. This is solved by the creation of centralized storage of all documents and code associated with a project. Further, benchmarks are established to document best practices and white papers are written to document the organizations intelligence. This information is accessible by all employees. * Work is primarily done by a young and inexperienced workforce which GDM addresses through its knowledge assets and bench marking. * Company can lose control of its IP and risk it getting into competitors hands. GDM has security measures and protocols built in but this risk can never be completely eliminated. * Projecting a ROI from engaging in offshoring proves less straightforward than one would expect. The savings are often not as great as expected. Additionally, organizations frequently underestimate the amount of man-hours that will be required to manage an offshore project. * Contracts seldom cover all conceivable scenarios and there are often misunderstandings between the client and the providing company regarding which services are to be provided under the contract. This can erode expected ROI considerably via unplanned expenses. A strong GDM can minimize these risks but not eliminate them. * Language barriers, differences in the ways of thinking, and cultural differences cannot be mitigated by use of BDM. The GDM is a set of tools and processes used to manage the engagement but the engagement is still performed by people and in an offshore engagement differences among people can cause most of the undesirable outcomes. * Offshoring can increase your exposure to hacking, dishonest insiders, lost back-up data, lost/stolen computers. Again, GDM can minimize these risk by having strong security procedures and protocols in place, but it can’t eliminate them
1.2. Does the risk inherent in offshoring still remain?
* Yes, GDM certainly minimizes risk but it does not eliminate it. There are some things that will never be overcome such as cultural differences, dishonest insiders and language barriers. GDM’s purpose is to maximize the effectiveness of offshoring while minimizing the risk but it can’t eliminate them. * Offshoring can put the company at significant risk especially is the data being managed by the offshore project is mission critical, private, proprietary, or would result in significant damage to public trust if exposed. A strong GDM will have systems and protocols in place to minimize this but some risk will always remain.
2.1. What Types of Work are Suitable for offshoring?
In the technology field today, work that is suitable for offshoring includes the following: * Infrastructure Outsourcing (maintaining IT technology): * Subcontracting service in which the management of an organization’s Information Technology (IT) systems and applications is handled by a third party. * Management of a company’s IT infrastructure and applications is often done from a remote location, usually in the service provider’s data center. Some choose local facilities, while others elect to outsource offshore. In the typical arrangement, the contractor takes a number of proactive measures and remedial actions to ensure that all of the clients’ IT assets will always be available to its customers. For most companies, this availability applies to more than just servers. * When entering an infrastructure outsourcing agreement, a company may also receive management of its network routers and...
References: By Preiti Sharma Shahane, TNN Jun 22, 2006, 12.00am IST
(http://articles.economictimes.indiatimes.com/2006-06-22/news/27455315_1_global-delivery-model-gdm-software) last visited on January 15, 2012
Making Global Delivery Work by Andrew Brabban, sourcing focus.com
(http://www.sourcingfocus.com/site/newsanalysisitem/4045) last visited on January 17, 2012
(http://www.sourcingmag.com/content/c061120a.asp) last visited on January 17, 2012
Oshri, Ilan, Kotlarsky, Julia, Willcocks, Leslie P.,
The Handbook of Global Outsourcing and Offshoring
London: Pelgrave, 2009
4 Steps to Secure IT Outsourcing by Bar Biszick-Lockwood
(http://sourcingmag.com/content/c050824a.asp) last visited on January 17, 2012
Infosys 3.0 is a strategic plan for future growth: SD Shibulal, CEO, Infosys, ET Now Aug 22, 2011, 04.13pm IST (http://articles.economictimes.indiatimes.com/2011-08-22/news/29915188_1_clients-sd-shibulal-infosys/2) last visited on January 16, 2012
Please join StudyMode to read the full document