This document summarizes lessons learned from a worldwide IT outsourcing contract worth 1 billion euros that involved taking over IT services for over 80 companies globally. Key issues that arose included different expectations around commitments in different countries and cultures, and resistance from local organizations to being managed from Germany. To address these, the project assigned a single responsible person for global aspects, established early communication, involved local sponsors, documented responsibilities clearly, and engaged local specialists. This improved understanding of commitments globally and ensured local buy-in for fulfilling the contract successfully.

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Project Management Institute
10 September 2000
Houston, Texas USA
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PMI GL BAL
ASSEMBLY 2000

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10 September 2000
Houston, Texas USAPMI GL BAL ASSEMBLY 2000
Lessons Learned: Practioners
Perspective on Fulfilling a
Worldwide IT Outsourcing
Contract
Thomas Walenta, PMP
Manager of Project Office

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10 September 2000
Houston, Texas USAPMI GL BAL ASSEMBLY 2000
Background
Worldwide IT Outsourcing Contract with a global holding
1 Billion € (EURO) total contract volume
Over 80 companies to be taken over and given IT services
Takeover of Customer Staff and Assets
Centralized Service&Billing from Germany to Everywhere
Global Standards to be enforced

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10 September 2000
Houston, Texas USAPMI GL BAL ASSEMBLY 2000
(Some of the global) Issues
Do local customer organizations want to get service from Germany?
Additional Administration (tax, financial, legal issues).
Takeover of customer staff (union, redeployment issues).
Standards defined in Germany not to be easily accepted globally.
Commitment from a country organization to act on a – maybe -
locally small but globally significant business

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10 September 2000
Houston, Texas USAPMI GL BAL ASSEMBLY 2000
Commitment Issues
What does the lead country organization expect / take for granted?
What does commitment mean in an other country / culture?
What does the local country organization expect?
How to reach a common understanding?
Who is in the driver seat?

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10 September 2000
Houston, Texas USAPMI GL BAL ASSEMBLY 2000
Reaction to the Commitment Issue
Assign one individual responsible for global aspects
Establish (define & use) communication paths early
Find local sponsors and focal points, make sure they are interested
Document goals, procedures, responsibilities etc.
Get buy in from local service delivery organizations (commitment)
Get local specialists working (HR, Finance, ..)

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10 September 2000
Houston, Texas USAPMI GL BAL ASSEMBLY 2000
Consequence
Better understanding of global commitments to customer by all
involved service delivery parties
Vested interest of local provider organization to fulfill contract
Better control by project team of what’s going on on the globe

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10 September 2000
Houston, Texas USAPMI GL BAL ASSEMBLY 2000
Lessons Learned
Think (far) ahead
Do not take local standards/habits as granted everywhere
Who are the stakeholders and what are their needs?
Nothing is business as usual in a global context (yet)