Offshoring 101 For Statisticians, Techies  and Analysts Ajay Ohri October 22, 2009
Offshoring  <ul><li>You will see some form of off shoring DIRECTLY over the point of your career on the next 10-30 years <...
Offshoring Economics <ul><li>Good in Macro economics    </li></ul><ul><li>  </li></ul><ul><li>(cheaper consumer goods, bet...
Offshoring: 3 Views <ul><li>How to find a right offshoring partner : TOP MANAGEMENT </li></ul><ul><li>How to work with a p...
Offshoring: 3 Views <ul><li>How to find a right offshoring partner : TOP MANAGEMENT </li></ul><ul><li>NORMAL WAY </li></ul...
Offshoring: 3 Views <ul><li>How to find a right offshoring partner : TOP MANAGEMENT </li></ul><ul><li>NORMAL WAY ( WHAT RE...
Offshoring: 3 Views <ul><li>How to find a right offshoring partner : MIDDLE MANAGEMENT </li></ul><ul><li>NORMAL WAY ( WHAT...
Offshoring: 3 Views <ul><li>How to find a right offshoring partner : LOWER MANAGEMENT </li></ul><ul><li>NORMAL WAY ( WHAT ...
Thanks <ul><li>  </li></ul>
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Offshoring 101 For Statisticians Techies And A

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Offshoring 101 For Statisticians Techies And A

  1. 1. Offshoring 101 For Statisticians, Techies  and Analysts Ajay Ohri October 22, 2009
  2. 2. Offshoring <ul><li>You will see some form of off shoring DIRECTLY over the point of your career on the next 10-30 years </li></ul><ul><li>  </li></ul><ul><li>Most likely  </li></ul><ul><li>  </li></ul><ul><li>Offshoring will increase to the point it wont matter if  </li></ul><ul><li>  </li></ul><ul><li>Some people telecommute to their office in same country </li></ul><ul><li>  </li></ul><ul><li>or Work by Video Conferencing from another country  </li></ul><ul><li>  </li></ul><ul><li>  </li></ul>
  3. 3. Offshoring Economics <ul><li>Good in Macro economics   </li></ul><ul><li>  </li></ul><ul><li>(cheaper consumer goods, better services, more profits to shareholders) </li></ul><ul><li>and sometimes painful in Micro economics </li></ul><ul><li>(Unemployment, </li></ul><ul><li>Wage Freeze) </li></ul>
  4. 4. Offshoring: 3 Views <ul><li>How to find a right offshoring partner : TOP MANAGEMENT </li></ul><ul><li>How to work with a part offshore team in Asia and part on shore team domestically : MIDDLE MANAGEMENT </li></ul><ul><li>How to maintain your own job if your company, skills start getting offshored : JUNIOR MANAGEMENT </li></ul>
  5. 5. Offshoring: 3 Views <ul><li>How to find a right offshoring partner : TOP MANAGEMENT </li></ul><ul><li>NORMAL WAY </li></ul><ul><li>1) Give a REQUEST FOR PROPOSAL </li></ul><ul><li>2) Select top 3-10 vendors ( maybe by asking an offshoring consultant or sending in house trip) </li></ul><ul><li>3) Give Pilot projects at Pilot cost </li></ul><ul><li>4) Select Vendor </li></ul><ul><li>5) Finalize Service Level Agreement ( X % of defects per process/ project) </li></ul><ul><li>6) Finalize costs ( Example- We will pay you 14 $ per hour for simple database querying and reporting  </li></ul><ul><li>and we will pay you 300$ per statistical model (new)  </li></ul><ul><li>OR  </li></ul><ul><li>We will take two dedicated employees ( called FTE or Full Time Equivalents) at 3200 $ per month per employee </li></ul><ul><li>for high statistical work </li></ul>
  6. 6. Offshoring: 3 Views <ul><li>How to find a right offshoring partner : TOP MANAGEMENT </li></ul><ul><li>NORMAL WAY ( WHAT REALLY HAPPENS) </li></ul><ul><li>1) Give a REQUEST FOR PROPOSAL  </li></ul><ul><li>                    Requirements sometimes created by people who are leaving need information only known by people who have left. </li></ul><ul><li>2) Select top 3-10 vendors ( maybe by asking an offshoring consultant or sending in house trip) </li></ul><ul><li>Consultants like McKinsey , Everest Consulting etc have alumni within some offshoring companies. </li></ul><ul><li>3) Give Pilot projects at Pilot cost </li></ul><ul><li>Offshoring companies are rarely interested in small projects. </li></ul><ul><li>4) Select Vendor </li></ul><ul><li>After 3-6 months ideally, but business demands instant solutions </li></ul><ul><li>5) Finalize Service Level Agreement ( X % of defects per process/ project) </li></ul><ul><li>Executing international contracts adds in costs which are not predicted. </li></ul><ul><li>6) Finalize costs ( Example- We will pay you 14 $ per hour for simple database querying and reporting  </li></ul><ul><li>and we will pay you 300$ per statistical model (new) WAGE INFLATION, CURRENCY FLUCTUATION </li></ul><ul><li>OR  </li></ul><ul><li>We will take two dedicated employees ( called FTE or Full Time Equivalents) at 3200 $ per month per employee ATTRITION </li></ul><ul><li>for high statistical work OVERHEADS OVERHEADS OVERHEADS </li></ul>
  7. 7. Offshoring: 3 Views <ul><li>How to find a right offshoring partner : MIDDLE MANAGEMENT </li></ul><ul><li>NORMAL WAY ( WHAT REALLY HAPPENS) </li></ul><ul><li>1) Half of your team works from India or China </li></ul><ul><li>2) You depend on them for work but quality is not as good ( COST DECREASED leads to QUALITY DECREASED  ) </li></ul><ul><li>3) Cultural Issues </li></ul><ul><li>  </li></ul><ul><li>    What does he mean? TRIPS AND TRAINING </li></ul><ul><li>    What are they doing right now? REPORTS ON RESOURCE UTILIZATION </li></ul><ul><li>   Sensitivities ? LETS not assume ANYTHING </li></ul><ul><li>  </li></ul><ul><li>    </li></ul><ul><li>4) Balancing On Shore Team Expectations and Productivity and Offshore Team Productivity </li></ul>
  8. 8. Offshoring: 3 Views <ul><li>How to find a right offshoring partner : LOWER MANAGEMENT </li></ul><ul><li>NORMAL WAY ( WHAT REALLY HAPPENS) </li></ul><ul><li>1) Your company announces losses and job layoffs. </li></ul><ul><li>2) Some people will lose jobs. Some jobs will be offshored. Some people will stay </li></ul><ul><li>3)You are told to finish all pending projects and start documenting everything you know </li></ul><ul><li>WHAT DO YOU DO? </li></ul><ul><li>  GET Multi Platform Skills ( Like Statistics and Business) or lIke (SAS and SPSS and R) </li></ul><ul><li>  HAVE JOB Backups </li></ul><ul><li>  Engage the offshore team so you become an expert in working with them </li></ul><ul><li>  Find a better paying job within the same company or same location </li></ul><ul><li>  Etc Etc </li></ul>
  9. 9. Thanks <ul><li>  </li></ul>

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