Case study a firm’s experience on adopting to the next gen model for managing outsourcing project
1. Case Study: A firm’s experience on adopting to the
NextGen Model for managing outsourcing project
Jayashree Gurumurthy
Yaswanth Sampathkumar
2. What is NextGen Model ?
• Dynamic Service Delivery Model
• Customer centric
• Flexible
• Cost effective
• Bring back lost customers
• Competitive Edge
3. Case Description
Client: State Healthcare Organization (S.H.O), (Non-Profit Health Insurance Provider)
Company: D.H.P Solutions, (Leading IT outsourcing firm in U.S.A with offshore site in India)
Onsite
Business Lead
Transition Lead
Offshore
2 Offshore Managers
2 Technical Teams
Scenario:
Analyse the impact on a company’s performance after adopting the NextGen model to manage
their outsourcing projects and deriving possible recommendations to improve the model
4. Case Study Findings: State Health Organization
• Lack of awareness about the need for the change
• Reasons quoted for adopting the NextGen Model
• Replace senior members who were not properly utilized
• Improve service delivery
• Effective cost cutting
• Issues faced by the company due to the adoption
• Team members mapped to roles mismatching with their skillset
• Lack of passion and interest among the technical team
• Communication gap between the offshore and onshore teams
• Poor Management
5. Goal Findings Issues
Improved service delivery model based on
“Incentive Based Pricing Models for
Outsourcing Contracts”
Failed to create an awareness about the
need for this change
• Lack of passion and interest
• Poor Performance
• Chaos among the teams
Replace highly paid senior members who
were not properly utilized with fresh
graduates for Cost Cutting
Existing senior members were mapped
with mismatching roles 17/21 members quit the job
To guide the team for seamless
transitioning to the new model
Offshore managers failed to do their
tasks and manipulated key information
to both leads and teams
Communication Gap between Onsite
Leads and Offshore Teams
To help the sincere members in technical
teams and to identify the issues
Onsite/Offshore ratio in contract with
clients did not allow the business to
send leads to Offshore for monitoring
Business leads were unsatisfied with the
Offshore team and quit as well.
Case Study Findings: State Health Organization
6. Recommendations
• Achieve 100% transparency
• Build an effective operating model
• Involve dedicated members to overlook
the transition in offshore locations
• Ensure to collect feedback from members
involved in all levels
• Consider
Operability
• Ensure User
Compliance
• Benchmark
Standards
• Involve 3rd
party
Identify
existing
practices
Design
New
Process
Review
Update
Test &
Execute
