Page 294 - Global Project Management Handbook

PROJECT MANAGEMENT FOR OUTSOURCING DECISIONS 14-19

underlying cultural assumptions behind these situations. Then the cultural overlap is
assessed by discovering the similarities. Then the participants identify culturally synergic
alternatives based on the overlaps and differences. Finally, a culturally synergic solution
is implemented by selecting the best alternative.

Control Phase

An outsourcing project does not end until the outsourced operations are terminated.
Experts suggest a continuous governance process to determine actual benefits derived
from the joint work. Jim Leto, president and CEO of Robbins-Gioia, LLC, a leading
program management consulting firm, states: “Just because you outsource something,
it doesn’t mean you can abdicate responsibility for it. The quality of management pro-
vided by the client is one of the most important factors in whether the relationship
succeeds or not.” 26 A successful start does not always mean that anticipated benefits
will continue all the way through. Loss of direct interactions, distributed supply net-
works, and cultural differences challenge achievement of the objective. The complexi-
ty of the environment necessitates continuous monitoring of performance specifica-
tions. Any economic, sociologic, or political alteration in the world can affect the
business. Hidden costs behind the operations, such as logistics and communication
costs, are likely to be elevated by a global distortion. Reevaluation of the outsourcing
decision should be performed periodically based on industry changes. There is always
a possibility that cost-saving expectations may turn into negative incomes owing to
cost increases or performance reductions.
Periodic evaluation of performance by customers is also important, as well as an inter-
nal review process. The customers in this case are the people who are in direct contact
with the vendor. For instance, if a call-center unit is outsourced to India, the satisfaction
of consumers can be assessed by surveys and interviews. If an IT operation is outsourced,
direct feedback from employees is of use. The results of these evaluations will confirm
the present condition in the outsourcing relationship. Not only negative outcome but also
positive feedback should be discussed with the parties. The process is under everyone’s
responsibility, and common solutions can be derived in the presence of both parties. The
assessment of drivers and consequences of the outcomes leads to reliability in the future.
For instance, costumer feedback changed the outsourcing practice of the computer giant

Dell, which employs about 44,300 people, about 54 percent abroad. Just as with many other
U.S. companies, its technical support center is in Bangalore, India. Some time after the full
transfer of operations, Dell found out that many U.S. costumers complained about the thick
accents and scripted responses of Indian technical support representatives. As a result, the
company stopped using the technical support center in India to handle calls from its corpo-
rate customers, which accounted for 85 percent of Dell’s businesses. Since home PC own-
ers are not a big chunk of the business and individual miscommunication cannot cause
massive losses, calls from home PC owners continue to be directed to India. 27
There should be continual improvements even after the outsourcing project is com-
pleted. It is also important to provide a continuing support system for employees. Keys to
success include 28
● The right applications
● Strong project management
● Smooth/planned transition
● Ongoing support
● Deliverables and scope that are agreed to by both parties