“IT Offshoring with Intention”
Neeraj Wadhera, Fidelity Investments
Kate Pugh, AlignConsulting, Sloan SM/MBA „96
Professor...
Agenda
• Introductions
• What does IT Offshoring Take, in Your View?
• “IT Offshoring with Intention” Practices
• Discussi...
Introductions and Context
Kate Pugh (SM/MBA „96)
• Former VP, KM for
Fidelity PWI
• Consulted in 1999 to
Mahindra British ...
Outsourcing is here to stay!
• Outsourcing/offshoring is here to stay.
2006 – 246B
2007 – 297B
2008 – 326B
2009 – 373B (14...
The Challenge is to “Maximize the value”
“Traditional”
• Task-based
• Round-the-clock
• Cost-Effective
• “Flexible Capacit...
“IT Offshoring with Intention” Practices
1.Effective Leadership
2.Effective management
3.Capability building
6IT Offshorin...
Effective Leadership
• Sharing the Big
Picture
• Leading as “Farming”
– Tomato vs. Corn
7IT Offshoring with Intention
Effective management
• Adopting a
“Program” Lens
• Infusing Meetings
with “Conversation”
• Leveraging
Workforce Diversity
...
Capability building
• Intentional
• Teaching SMEs to
Teach
• Publishing and
transferring
knowledge
9IT Offshoring with Int...
We weren‟t in the McKinsey‟s study, but…
Category
“Offshoring with Intention“
Practices
McKinsey Global Offshoring and Out...
Discussion
11IT Offshoring with Intention
Appendix
IT Offshoring with Intention 12
1. Sharing the Big Picture
• Sets direction
– Share the broad vision of the program (“clarity of vision”), including
chall...
2. Leading as Farming
• Tomato Farmers
– Hands on managing
– Mentoring cum
managing
– Manager models,
acculturates
– Task ...
3. Adopting a “Program” Lens
• Visual image of related projects
– interdependencies within, across operations, other funct...
4. Infusing Meetings with “Conversation”
• Leveraging conversation/ facilitation skills
– Sense-Making; Joint interpretati...
5. Leveraging Workforce Diversity
• Cognitive Diversity
– Tech & Cust Expertise
– Conceptual models
– Networks
– Comms/Lea...
6. Teaching SMEs to Teach
• Capability building as management priority
– Shadowing, mentoring
– Job rotations into US by H...
7. Publishing and Transferring Knowledge
• Having KM disciplines/
consistency
– Content
• About the project
(Go-to for inf...
Deep Dive: Conversation
20
Interact
Ownership
Presence
Sense-making
Depth/Context
Act!
Stewardship
Retention
Interpretatio...
McKinsey on “Outsourcing” Innovation
21IT Offshoring with Intention
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IT Offshoring with Intention (Pugh, Wadhera) 100406

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Offshorting discussion with MIT Sloan Students of Professor Jeanne Ross, Center for Information Systems Research, April 2010. Presenters were Neeraj Wadhera (Fidelity Investments) and Katrina Pugh (AlignConsulting, formerly Fidelity Investments). Emphasis was on how to effectively manage the offshoring relationshps like a virtual team.

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IT Offshoring with Intention (Pugh, Wadhera) 100406

  1. 1. “IT Offshoring with Intention” Neeraj Wadhera, Fidelity Investments Kate Pugh, AlignConsulting, Sloan SM/MBA „96 Professor Jeanne Ross, Center for Information Systems Research April 6, 2010 1IT Offshoring with Intention
  2. 2. Agenda • Introductions • What does IT Offshoring Take, in Your View? • “IT Offshoring with Intention” Practices • Discussion 2IT Offshoring with Intention (See IT Offshoring with Intention details in the Appendix)
  3. 3. Introductions and Context Kate Pugh (SM/MBA „96) • Former VP, KM for Fidelity PWI • Consulted in 1999 to Mahindra British Telecom • Offshored Finance Portal to Mumbai with JPMC • Neeraj‟s IT client • Neeraj‟s KM / Change Mgt. provider • Consult in Strategy, KM, Change Mgt Neeraj Wadhera • Fidelity Technology • Founding member of FMR India IT (Fidelity‟s captive org. in India) • Built and led IT delivery teams (400 people) • Built and led 2nd site (Chennai) • Intro‟d Change mgt practices with consolidation of sites. 3IT Offshoring with Intention
  4. 4. Outsourcing is here to stay! • Outsourcing/offshoring is here to stay. 2006 – 246B 2007 – 297B 2008 – 326B 2009 – 373B (14.4% increase) 2010 (projected) - 412 (all figures in USD billion) • Out of total $1.6T 2009 Worldwide IT spend, 23% is outsourcing/ offshoring. • Outsourcing/offshoring to India alone forecast 2010 is $48B. • Of this, offshoring in India will b $7-$10B (Captive, as opposed to 3rd party) • Organizations have learned to move work offshore and save costs… 4IT Offshoring with Intention *Source XMG Global, a leading ICT research and advisory firm This is one of the few global IT industry categories seeing growth in 2009, while the rest fell.
  5. 5. The Challenge is to “Maximize the value” “Traditional” • Task-based • Round-the-clock • Cost-Effective • “Flexible Capacity” “Value-Maximizing” • Greater control / reduced risk • Innovation • More complex functions connected to customer/product 5IT Offshoring with Intention How do you achieve it?
  6. 6. “IT Offshoring with Intention” Practices 1.Effective Leadership 2.Effective management 3.Capability building 6IT Offshoring with Intention
  7. 7. Effective Leadership • Sharing the Big Picture • Leading as “Farming” – Tomato vs. Corn 7IT Offshoring with Intention
  8. 8. Effective management • Adopting a “Program” Lens • Infusing Meetings with “Conversation” • Leveraging Workforce Diversity – Cognitive vs. Motivational 8IT Offshoring with Intention
  9. 9. Capability building • Intentional • Teaching SMEs to Teach • Publishing and transferring knowledge 9IT Offshoring with Intention
  10. 10. We weren‟t in the McKinsey‟s study, but… Category “Offshoring with Intention“ Practices McKinsey Global Offshoring and Outsourcing Dimensions Integration, including visits Fulfilling work for Offshore Team Build Expertise Explicitly Effective Leadership 1. Sharing the Big Picture X X 2. Leading as Farming X Effective Management 3. Adopting a “Program” Lens X X 4. Infusing Meetings with “Conversation” X 5. Leveraging Workforce Diversity X X Capacity Building 6. Teaching SMEs to Teach X X 7. Publishing and transferring knowledge X 10IT Offshoring with Intention Virtual teaming practices improve: • Attrition • Offshore effective rates • Onshore customer satisfaction Source: 2008-9 McKinsey Survey of Global Offshoring and Outsourcing Industry
  11. 11. Discussion 11IT Offshoring with Intention
  12. 12. Appendix IT Offshoring with Intention 12
  13. 13. 1. Sharing the Big Picture • Sets direction – Share the broad vision of the program (“clarity of vision”), including challenges and opportunities – Ensures that the global team has a clear understanding of team objectives (Near term and long term) • Shares the strategy for working with offshore team(s), including outsourcers – Intended value proposition • Demonstrates the significance of the specific work being done offshore – How is this work valuable to company‟s objectives • Big Picture as “professional context” – Performance compared to outsourcers (common metrics) • Result: – Shared sense of urgency – Accelerates professional development, proactivity, innovation – Enhances employee engagement 13IT Offshoring with Intention
  14. 14. 2. Leading as Farming • Tomato Farmers – Hands on managing – Mentoring cum managing – Manager models, acculturates – Task mastery – Team-member development • Corn farmers – Hands off managing – Mentoring separate from managing – Engagement in strategy – Improvisation 14IT Offshoring with Intention Should correspond to topic, not geography (for both US and India managers “Leaving the comfort zones”)
  15. 15. 3. Adopting a “Program” Lens • Visual image of related projects – interdependencies within, across operations, other functions, customer buying processes – Identify and mitigate shared risks • Broad understanding of the program / product / function – Customer objective (criticality, usage, priorites) – System objective (capacity, feature impacts, queue prioritization, standards) – Workstream shared milestones & interdependencies • Daily interactions about deliverables and cross-impacts – Example: DAT Reviews • Result: – Know impact of actions on other workstreams – Proactivity, creativity 15IT Offshoring with Intention
  16. 16. 4. Infusing Meetings with “Conversation” • Leveraging conversation/ facilitation skills – Sense-Making; Joint interpretations • Regular “pause” – Scheduled part of meetings – In person/virtual (travel needed) – Synchronous/Asynchronous – Climate for risk-taking, participation • Result – Improved understanding – Team confidence – Team belongingness – Effective networks 16IT Offshoring with Intention
  17. 17. 5. Leveraging Workforce Diversity • Cognitive Diversity – Tech & Cust Expertise – Conceptual models – Networks – Comms/Learning • Motivational Diversity – Incentive response – “Triggers” and interests – Capacity/endurance 17IT Offshoring with Intention • Result: • Better sense-making , innovation (from convention into creativity) • Balance of over-exuberance with sobriety • Greater interchangeability of resources “Collections of people with diverse perspectives and heuristics outperform collections of people who rely on homogeneous perspectives and heuristics.” Scott Page, The Difference (2007)
  18. 18. 6. Teaching SMEs to Teach • Capability building as management priority – Shadowing, mentoring – Job rotations into US by Hi-Pos – “Teaching” in SME‟s Devel. plan, responsibilities • Reflection / Storytelling, Documentation, Extrapolation, Proactivity, Domain expertise – Indian engagement leader in US • Access to SMEs • Translation (helped SMEs parse questions) • Result: – Greater capacity – Engaged and motivated SMEs 18IT Offshoring with Intention
  19. 19. 7. Publishing and Transferring Knowledge • Having KM disciplines/ consistency – Content • About the project (Go-to for information about workstreams, queues, clients) • About the team – KM Processes • Tacit knowledge processes (e.g., Communities of practice, knowledge- jams/elicitations) • Collaboration using social media • Result of easy access to knowledge – Greater efficiency (reusing knowledge), greater consistency 19IT Offshoring with Intention
  20. 20. Deep Dive: Conversation 20 Interact Ownership Presence Sense-making Depth/Context Act! Stewardship Retention Interpretation Application         Dialogue Principles* 1.Voice 2.Respect 3.Suspension 4.Listening Isaacs, William, Dialogue and the Art of Thinking Together (1999), adapted by K Pugh IT Offshoring with Intention
  21. 21. McKinsey on “Outsourcing” Innovation 21IT Offshoring with Intention

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