Ways to avoid outsourcing failure...

According to Robinson and Iannone (2007) Transition is the most challenging period in an outsourcing project. Over two thirds of projects encountered problems that began at the transition stage. They suggest three approaches to address issues that germinate at the transition stage

"1.Refocus and retraining of the retained organization is critical. In most cases, the retained staff consists of IT professionals who have been "doers", with strong technology management roles in service delivery. Now they must shift gears and reconstitute themselves as managers and liaisons between their organization and the service provider. Special training may be necessary so that members of the retained organization understand and can operate effectively in their new roles.
2.Use acceptance criteria. Tactically, a key success factor at the transition stage is the use of acceptance criteria: What are the marks that the service provider needs to hit, by what dates? Unrealistic transition timetables are a frequent source of trouble. Both buyers and providers should look with a sceptical eye at the viability of their transition timeframes.
3.Choose the right transition economic model. A milestone-based, achievement-based economic model is a better approach than a time-based economic model."

(Robinson & Iannone, 2007)

Reference
"9 Ways to Avoid Outsourcing Failure" by Robinson & Iannone, 2007. CIO Magazine (link)

"Understanding Transition Performance During Offshore IT Outsourcing" by Beulen et al (2011).

Am I dealing with Guanxi yet?

The problem with Guanxi for non-Chinese dealing with China based or culturally influenced organisations is figuring out when Guanxi applies.

Q&A on the topic of gifts:

• Does it start with big gifts? 
• No, someone starts the process out with longish introductory engagements, these are usually set up by mutual parties or intermediaries.
• What happens in the build up, before? 
• Generally a lot of ground work has to be done in advance.
• Who gets gifts? 
• Usually gifts may be given by equivalents at each level. The most important at the level of business/organisational owners.
• If the first meeting doesn't go well, does that stop the relationship getting closer? 
• No, anything can be recovered, but no one expects a screw-up at the eventual formal kick-off, which anyway happens after all the ground-work is done in advance (months of interaction).
• Who presents and receives a gift? 
• The highest representative at the highest level present.
• When selecting a gift what should I consider? 
• Things like value, symbolic importance, scarcity, use. Get advice from a suitably respected and experienced organiser.
• Do you need to bring a gift to every meeting?
• The first meeting for the agreement between organisations is the most important (but of course preparation has taken place earlier, see above).
• When should the gift be opened? 
• Well you should ask 'can I open it?' usually if it's ok the gift will be a small thoughtful token, but if it isn't ok to open it it may be a high value, socially 'heavy' gift, one that generates an obligation of sorts.
• Does the big visit (agreement visit) to the host require a reciprocal visit to the guest's site? 
• Often, yes, and consider again, to eat with the guest is very important, particular consideration should be given to what food is offered.
• What role does food play? 
• To eat with the guest is very important.
• What kind of food should be ordered? 
• Again, the best of everything makes for auspicious relationships.

Establishing a 'new software capital'

Offshoring and Outsourcing in China
Xi'an: A regional perspective. An interview with Prof. Rong Du, Department of Management, School of Economics and Management, Xian University.

What are the challenges that Xi'an has had to overcome to establish a local outsourcing industry?
What barriers exist?
What benefits filters through to the local economy?
Who is the competition?
What specialisations are specific to China and Xi'an (BPO, ITO, R&D, Manufacturing)?
What are Xi'an's advantages?
Do businesses support each other through clustering?
Can you provide examples of the kinds of businesses basing themselves in Xi'an?
How do so called tier 2 cities position themselves amongst each other and alongside tier 1 cities?
Which international markets are most open to setting up operations in China or working with Chinese firms?

Tech sector more than just jobs for geeks.

Chris Horn's Sunday Independent article on under-employment in the Irish tech sector & the cultural issues concerned bit.ly/yYKlCX

Videos for cases...

The case of Unnat-e offers an insight into the vendor's perspective in the outsourcing industry.


Xian: A Sourcing Destination

• CT outsourcing product development and maintenance (link)
• China's software parks (link)
• Sourcing arrangements for global sourcing insurance services (link)
• Outsourcing IT services by Market Maker (link)