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Case Study 5:
Outsourcing / Off-shoring
The Client:
A $9 Billion, privately held software company with specialized application expertise that they sell to other companies and competitors.
The Challenge:
Our Client saw a major opportunity to market their software to the largest firm in India and required to increase the capacity of their IT Engineering staff. The outsourcing requirement included four tier customer support, software maintenance and all enhancements. Our client’s staff was struggling just to keep up with the internal demand on their department and needed to issue a Request For Proposal. The goal was to find an offshore third-party service provider that could be a longer term business partner, handle point of sale software, inventory, finance and accounting applications, and be trusted with our client’s source code. Finally, a contract had to be negotiated that would be advantageous to our client and ensure that all of the multiple country legal conditions were addressed.
The Solution:
HBSC Strategic Services provided expertise in Off-shoring, Procurement, and IT Strategy to assist the client in executing our customized methodology that produces the desired result. The engagement team used its extensive experience to guide the client to successfully accomplish the following:
- Select the correct model with which to engage an offshore partner
- Select from a field of qualified vendors based on two quantitative and one qualitative evaluations
- Determine what to offshore, establish realistic expectations and service level agreements
- Be aware of what otherwise would have been hidden costs
- Develop the contractual framework
- Establish a relationship structure between the client, their customer and the third party service provider
- Define the knowledge transfer / retention process and program
- Clarify and thereby create an intellectual property hierarchy
- Address cultural differences so morale did not suffer |
The Benefits:
HBSC assisted the client by utilizing our off-shoring methodology to produce information critical to selecting the right business partner and model. This process includes “talking points” for employees and the news media, a defined project schedule that is scalable to fit the size of the client’s model, architecture, and plan to achieve needed scalability, both today and in the future. Other considerations addressed were compliance to standards and various regulations, cost savings, operational efficiencies, and the organization necessary to address these items. Several specific benefits realized by the client were:
- Cost savings
- Time zone advantages
- Skilled IT staff
- Quality of projects
- Shorter turn around time
- Mature governance model(s)
Case Study 1 - Case Study 2 - Case Study 3
Case Study 4 - Case Study 5 - Case Study 6
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