Posts Tagged ‘2010’

A Hybrid Approach to Outsourcing Fuels IT Success

December 3rd, 2014

If the digital age has proved one thing, it’s that IT departments face tough questions about how to operate and manage resources at maximum efficiency. At Rompetrol Group N.V., a Romanian energy producer and trader that refines about 4.5 million tons of crude oil a year and has more than 7,000 employees stretching across 12 countries, the path to greater efficiency led the firm to IT outsourcing in 2010.Outsourcing9

“It was viewed as a way to run things in a more efficient and cost-effective way,” says group CIO Marcel Chiriac.

However, the decision to outsource the company’s entire IT function, including about 200 applications, soon proved problematic, and the dream of a more efficient IT infrastructure became a nightmare. “The exercise went on for two years,” explains Chiriac, who assumed the IT leadership post in 2012. “The costs actually went up when Rompetrol attempted to make some adjustments. At the same time, the level of service started degrading, and the relationship soured.”

As a result, Chiriac and the executive team pulled the plug on the previous outsourcing provider when the contract expired.

“We decided to bring a number of functions and responsibilities back in house and adopt a hybrid model that involves about 60 vendors and service providers,” he reports. “This was a significant challenge because there are only 26 people in the company’s entire IT organization, and we manage functionality across 3,000 active users and more than 2,000 devices and configuration items.”

The firm turned to network infrastructure and automation firm IPsoft to better manage systems in a hybrid environment. The vendor offers tools and systems to manage technology virtually through cognitive engineers and agents.

Rompetrol brought key functions such as security, vendor management and overall governance back in house, while the IPsoft solution manages servers, switches and various other hardware and software components, including OS and database support.

Chiriac says that Rompetrol gained key insights from the experience. For one thing, “Never put all your eggs in a single basket,” he advises. “When you have one supplier or service provider, you don’t have adequate leverage and control over the IT environment. You’re likely to have a very difficult time knowing what is going on—even if you have service level agreements in place.”

For another, he points out, there’s no way to outsource strategy and governance. “An outsourcing provider doesn’t have a stake in the success of the business,” he says.

The hybrid approach to IT has paid dividends. Chiriac says that the automated approach resolves about 56 percent of incidents related to infrastructure without human interaction. The company has slashed overall IT costs by about 32 percent, while expanding the scope of business and IT initiatives.

At the same time, Rompetrol has consolidated the number of vendor contracts from about 100 to 48. This has led to improved oversight and cost reductions. Finally, customer satisfaction ratings have risen from about 3.4 to 4.1, on a 5-point scale.

“We have found an approach that works and provides the level of visibility we require,” Chiriac says. “We have reached a point where IT is manageable.”

Samuel Greengard, a contributing writer to CIO Insight, writes about business, technology and other topics. His forthcoming book, The Internet of Things (MIT Press), will be released in the spring of 2015.


Service outsourcing

October 11th, 2010

The use of the skills and capabilities of people in other places clearly helps businesses in maintaining their operation at lower costs. However, outsourcing is not a flawless transaction and it is expected that in every partnership established, problems will be encountered. Issues can be as minor as not being able to follow the correct reporting format or as major not performing the required task as agreed in the scope of the project.

The leading motivation for outsourcing is cost reduction. However, there are other advantages, including more efficient use of resources, improving service, and the ability to work with true experts in non-core business operations.

Regardless of why your client is outsourcing their process, managing the ongoing relationship with that client is crucial. From the moment the contract is signed, you want to make sure your organization maximizes its benefits.

So, how do you best manage an outsourcing contract? How can you build a strong relationship that protects both your and the client’s company from unnecessary disagreements and conflict? And how do you avoid wasting valuable time and resources – and, perhaps, avoid losing some of the benefits or in the worst case scenario, termination of the outsourcing arrangement?

Communication is always crucial in business, whatever industry it may be serving. However, miscommunication is often experienced by those who are involved in outsourcing because of the cultural and language barriers which may be present. This poses a threat to the integrity of business procedures carried out. In extreme situations, miscommunication may lead to business failure and problems with the dedicated outsource staff. Such problems may be left unanswered and result to delayed progress and disregarded issues.

To remedy this, a permanent time and means of communication must be identified and implemented. A method of constant communication between your key staff members and the client’s members charged with the oversight of the project will prevent mistakes, enhance communications, and ultimately lead to increased client relationships and improve long-term opportunities. Daily progress reports, which include: details of goals achieved, current project expectations, past project performance, identified issues and concerns and recommended remedial actions, must be included in the daily communication process as these improve the relationship between the client and the provider.

Maintain Regular Communication

It’s important that you have a well-established communication system for regular checkups, and for managing occasional issues and concerns as they occur. Both you and the client need to know what’s happening, and you also need to ensure that you are consulted when something unusual happens. Outsourced business relationships are long-term and ongoing, it is vital to both you and your client’s success that you stay in close contact – even when everything appears to be work well.

Appoint a project manager, or other key member, to communicate with the outsourcing partner on a regular basis – and establish a key contact person at the supplier. It is vital that the project managers has the authority and knowledge to suggest and make needed improvements as suggested

Keep senior managers and other stakeholders on both sides informed of activities, to ensure ongoing support of the outsourcing relationship. This is especially important during the first year, because unexpected problems may cause senior management to withdraw their support.

Have managers and stakeholders on both sides available to answer questions if either party encounters a problem. Determine, define and document expectations from both parties. It is important that you attempt to anticipate the types of issues that may arise and provide key contact information on both sides to allow immediate response and rapid resolution to issues or concerns.

Keep each other informed about changes to the work environment. These include key staff members, process and procedure changes, equipment and supplier changes, etc..,

Ensure that communication channels are established between your organization and your client’s at all the appropriate levels. Each side needs to know who to contact directly, without having to go upwards through an endless chain, to the appropriate manager, and back down to the person who actually has access to the original document.

Establish and Measure Performance

It’s common practice to establish a regular performance review process in the first year of an outsourcing relationship. This allows you to develop an effective communication system and keep in close contact with the supplier. It also gives you a way to move the relationship forward. While it is common to establish a first year review process, it is vital to establish and maintain an ongoing performance process.

Initial performance levels shouldn’t necessarily be taken as indicative of your either party’s true ability: although the provider will often times be chosen based on their expertise in their field, they will still need to learn things about the client’s organization and you will need to spending time and resource documenting and passing knowledge about one another’s unique business requirements.

You must to be able to determine whether you are meeting or are able to meet the Service Level Agreements that were defined as part of the contract. Make sure you have the right mix of qualitative and quantitative measures.

Certain workers may or may not be able to do a specific task due to poor orientation or complication. For example, a person is asked to create a web page utilizing PERL’s for the company’s up and coming marketing campaign, but their training has only been limited to search engine optimization. Some managers and key client contacts tend to forget to truly measure their people’s capabilities and some recklessly delegate tasks which are not in their scope of work for the sake of delegation or based on relationships and a desire to help someone achieve growth and opportunity. This will inevitably result to a waste of time, resources, and money as well as adding unnecessary stain on relationships. Allowing people to learn new skills and advance their knowledge must be closely monitored and evaluated by a season professional with the appropriate skills and knowledge.

To prevent such mistakes from happening, the company needs to make sure that the staff they will be hiring is capable of doing the list of tasks they are intended to provide. If the worker is willing to be trained, then he or she should be trained by an expert from the company’s end for quality and accuracy. It wouldn’t hurt to invest a little time if it means ensuring the future. However in the beginning, the staff’s skill and ability needs to be measured properly to see if they are truly a match with the position available.

Potential Risks

One area where outsourcing relationships can go wrong is when requirements evolve substantially, and both parties are unprepared to meet the new needs. In this case, you may need to terminate the agreement early. As there are usually penalty clauses for doing this, the sooner that both sides are aware of changes the better; with enough notice, you may be able to develop the type of extended service you’ll need.

Staffing practicalities: If the business process is being done by new people as opposed to your experienced staff, you will need to monitor whether the people who are actually doing your work are of the quality that you were expect and promised in fulfillment of the service process. If the work is substantial, then your will have taken on new staff to carry it out the terms of the agreement. When a team of staff members have to be recruited in a short space of time, their knowledge and standards may not be at the ideal level. In addition, they won’t have had time to get to know yours and your client’s processes, and time constraints may limit their training.

To mitigate this risk, you ensure that you and your team leaders know what the processes and expectations are and to remain alert to those standards that are not being met. You will need to be proactive about identifying and correcting short comings. If possible, ensure that the team members assigned to the project contain a mix of new and tenured team members.

Create a Partnership

This is about going beyond the contract. An outsourcing relationship relies on mutual trust and respect. If you remember to treat one another as partners, you will establish a business environment in which you can productively work through inevitable problems in the future.

Both parties need to be open with your business objectives. Discuss goals and how you believe the relationship will help of you achieve them. Be flexible. Recognize that change happens, and work with together to find solutions. Establish hands-on support from senior management and other key stakeholders. Establish and maintain daily communication, define objectives, and create a report process on the project progress.

Be Prepared

Because this is a long-term relationship, there will be issues, obstacles, and changes in how the work is delivered over time. By establishing a process to deal with these challenges, you’ll avoid a great deal of confusion, frustration, and lack of trust.

You need to understand that the demands are challenging. In a context of ever-increasing volumes of information, juggling competing requirements of quality and sustainability is no easy task. Given the impact of cost control on most organizations’ balance sheet, an outsourced service relationship offers an innovative approach to re-gaining control over costs. A well-managed outsourcing process also deals with a host of other issues brought about by a maturing information age, such as meeting efficiency, sustainability and security targets, all the while taking advantage of the latest technology solutions.

Managed print services is by no means a panacea; but, when implemented correctly, and in the light of a changing business environment, it can lead to considerable and tangible improvements, and can bring those that you serve one step closer to optimizing their business processes, and improving overall business performance.

Remember these basic rules;

Be realistic about resources
Clearly define and document expectations
Establish clear service level agreements
Establish and maintain; open, and two-way communications
Develop a reporting scorecard process
Implement and continuously refine the quality process
Establish key contacts and provide a means to access them
Communicate errors or problems immediately and work to resolve them

As a printer, are you prepared to enter into these challenging, yet potentially long-lasting relationships? Or, are you prepared to have others come in and offer these services to your key clients.


IT major patni inaugurates its suzhou china facility

October 11th, 2010

IT and BPO services-provider, Patni Computer Systems , on Monday announced the opening of a new ITO delivery (development and support) center in Suzhou, China.

Situated in the Suzhou Software & Technology Park (SSTP), the state-of-the art facility with a planned capacity of 500 seats is Patni’s first centre in China.

Patni’s new Suzhou delivery centre is set to serve the Yangtze region—the largest and one of the most highly developed manufacturing bases for international companies, a press release issued in Mumbai stated.

The centre will focus on delivering development and support services to cater to Japanese, the US, European and local multi-national corporations.

Commenting on the development, Patni’s CEO, Jeya Kumar, said, “the launch of our new Suzhou centre is in line with our corporate strategy to focus on regional markets and adopt a truly global delivery model, to yield higher talent efficiencies. The Chinese outsourcing market possesses immense potential, both from a delivery and customer standpoint, and we are geared up to capitalise on this opportunity.”

KPMG reports indicate that China’s onshore and offshore outsourcing market in 2007 stood only at $7.5- billion but witnessed a rapid uptick to reach $20-billion last year. By 2014, KPMG predicts that China’s total outsourcing market will be pegged at $43.9-billion, the release said.

“We have seen a meteoric rise of China as a potent outsourcing destination owing to conducive factors such as cost and labour arbitrage, skilled workforce and robust infrastructure. We look to address the changing customer dynamics of global outsourcing through a strong local presence and service customers from North America, Europe and APAC for development and support projects,” said Patni’s APAC president, V Mathivanan.

The centre will systematically build-up to full capacity, a majority of which will comprise local talent. For Patni, Suzhou has the advantage of being a cost-effective destination with good accessibility to Tier 1 cities and a large and competent pool of talent adept in various computing skill-sets.


Understanding the major benefits of offshore outsourcing

October 11th, 2010

According to recent studies conducted for offshore outsourcing, the single factor that affected call center outsourcing in the past ten years was labor deployment and that is the standard used by most companies when it comes to making decision on hiring workforce on a larger scale and where to send them where they can get a more profitable advantage for their companies. Before, the cost of labor was one of the most important determining factors in management decisions. The truth is that the majority of the offshore call center boom that happened in the 90’s was all because of the cost efficiency offered by call center outsourcing. But as the demand for offshore outsourcing rose dramatically in 2000 up to the present, the benefits of offshore outsourcing today does not solely focus on cost efficiency alone.

Without a doubt, labor cost is among the important factors why offshore outsourcing is popular in the business sector. Call center outsourcing allows companies to perform crucial jobs without the need to pay steep wages compared to doing it onshore. Providing training and sometimes education for the local workforce is a high investment risk for majority of the companies not to mention the wasting of company’s valuable resources on redundant job responsibilities. The core objective of the business is often neglected due to the fact that most of the workforce is preoccupied on minor things like answering customer calls and other related tasks. It really does not make any sense in paying priced wages on jobs that can be performed at a fraction of the cost when the company considers offshore outsourcing.

Another advantage of call center outsourcing is that your business can operate twenty four hours and seven days a week. This is a key benefit for the industrial sector whose main service is offering round the clock assistance for their clients and customer service is a key component, offshore outsourcing is certainly the key to success. By using a call center, companies are able to boost their customer relations allowing clients to transact business with them without having to waste time or wait in line for their turn. If customers have the convenience to quickly access the information they need, client relationship improves significantly. The kind of service provided by call center outsourcing can dramatically enhance the image of the company which in turn attracts more business opportunities.

Offshore outsourcing allows the company to obtain highly qualified staff without paying steep wages. The trained workforce provided for by offshore outsourcing is very efficient in handling calls, giving the kind of customer service a company requires in order to gain an edge and become competitive in servicing the needs of their clients. Most companies opting for offshore outsourcing observe that they are now able to entertain double the number of calls than they used to before they got into call center outsourcing. This is why most companies today are taking advantage of the benefits offered by offshore outsourcing, not only because it is cost effective for their business, but it becomes easier for them to manage vital statistics and other information essential to their business operation.


Advantages of outsourcing web development services

October 11th, 2010

It is a fact that you can’t do all the work alone and a team enhances the productivity of the work. It happens because you might not be good at certain work but others may have specialized skills to perform the task successfully. Same is the case with the web development. There must be some solid reasons behind organizations outsourcing web development services. The overall concept and process of custom web development is meticulous and HTML coders ought to pay great attention when creating search engine friendly and lightweight codes for a website. In such a situation, outsourcing the web development services come as a good option. This ensures that you can avail qualitative services at affordable costs. If not satisfied with this arguments, below you will see important benefits that you avail, if hiring web development service provider:

1) Costs are a big issue. Companies want to save money so that the capital can be used on other tasks in hand. The money they pay to the vendor is much less that what they would have incurred otherwise. So, you can save a lot of money because you will be getting affordable labor off-shore, but at the same time, getting the quality work done by them.

2) Many off-shore web development firms are adhering to a rigorous as well as strictly procedure oriented commitment model. You can be assured of the standard turnaround time which they commit for! Get your design assignments finished an delivered on time without any hassles.

3) Risks are reduced as the Web development partner will have prior knowledge and experience on projects and only offer proven working solutions.

4) You can personally monitor and track the progress of your project work. The advantage of outsourcing committed outsourced services has led to manifold benefits, and this is inclusive of a nearly instantaneous awareness of ROI.

5) It is always good to share knowledge and grow. If you are working with an outside web development company, you will get fresh perspectives and new ideas which can ultimately enhance your marketing message and functionality.

6) You get the access to the latest technology and expertise. Top professional Web development firms have a variety of specialists in important niches such as usability, information architecture, accessibility, etc. Since no company want to lose the clients on the basis of lacking in its offerings. It handles multiple tasks such as offshore software development, open source web development, custom application development, and mobile application development. So the project is made versatile through the service.

These are various other hidden advantages that one gets by outsourcing the services. These are huge and cannot be overlooked or bypassed. They make a huge difference to the service and ensure quality website production. It is always recommended to outsource the web development services for getting quality output within your budget constraints.


Outsourcing and seo automation

October 11th, 2010

It is critical that web masters looking to get their web sites ranked in the search engines participate in link building and search engine optimization. Link building methods need to be applied heavily at the beginning of a new sites seo campaign and everyone knows this. These people also know that they will have to continue building links in order to continue to keep their search engine rankings.

Unfortunately, many people cannot put the necessary amount of time into their past successes while working on their new ones. Even though page rankings usually don’t disappear after one day of not creating back links, they do eventually disappear.

Many people turn to seo automation tools that allow them to quickly build hub pages and blogs at break neck speed. This method seems great since it cuts down dramatically on the amount of work one has to do in order to create back links. Sadly, there are many negative effects to using these automation tools. A local Minneapolis seo company here warns that quickly built automated links do not have a natural look to them. Link profiles that are not built naturally have a higher chance of getting pushed out of the search engines index of sites. You aren’t building links to get delisted are you? People that want their sites to remain in the search engines for years to come should always stay away from seo automation tools.

A great way to go about avoiding the manual work of search engine optimization and link building while keeping a natural link profile is to outsource. Outsourcing your seo work to a professional is a great way to maintain your seo rankings while keeping your calendar clear to do the new work you need to do. Let the professionals look after the rankings of your old sites while you build up the rankings on your new ones.

Web master’s that live in America really should do business with seo companies located in America. It is easier to communicate with a business that is on the same time zone and speaks the same language as you. One great company to look into is . This company has a wide range of packages for both small and large businesses. Link building and key word optimizing are just some of the services this company has to offer.


Outsourcing of information technology for companies who want faster growth

October 8th, 2010

Outsourcing has become an accepted ritual for companies today. The countries affected share the outsourcing services are approached by companies from the genitals altered the world. External information technology makes day to day business functions simpler, as membership in the larger forms of systems and applications, with lower prices, is enjoyed with these IT outsourcing companies.

Offshore IT outsourcing companies tend to advancedhosting IT services such as software development, revision and editing, site architecture of outsourcing in India, conversion, abstract animation, multimedia, optimization of agent Chase, admission abstract services and more abundant. There are endless options to accept the second from the top of your business needs.

For companies that do not accept centralized IT services, outsourcing web projects, is ideal. May have experiencedaccompanied by a cardinal of fields such as software development, online marketing, web maintenance, solutions, devices, etc. You can get access to IT services after the latest headache for used IT equipment has been adopted.

You can do business and terrible and the staff made the biggest gains after his death adopted by IT outsourcing. Improving the ability of companies covering missions and gives a vanguard of the participants for their business.acceptable and qualified outsourcing companies that can accommodate cutting-edge and advanced IT solutions.

The alliance of outsourcing admired countries, developing countries like India, China, Russia, etc are actually closer to the outsourcing of IT services. Similarly, countries agree that abound added Abate also began outsourcing mechanical taken an award for the accumulation of cake.

Outsourcing web projects for countries added has become theAddress by the Mount and the demand for purchasing companies make rapid progress and development. wheelchair can be sure that if outsourcing companies named acceptable, become the largest service beyond their expectations. When the alignment is in the earlier stage of development, the services of affection are naked, while the costs of the office to check.

Outsourcing has led to advances in developing economies adopted. It’s miserable not onlylarger projects are applicable to outsourcing. In fact, many of the works will also be outsourced. India is certainly over for the IT outsourcing area, there are bags and bags of IT professionals in jobs at lower prices in the allegory of love to the West.

These companies are active in your system is suitable not fit with the latest changes in technology and progress covers all levels of standards. Consultants be appointed toqualified and able to complete in the case, and that can accept a command in the English language. Sometimes they are similar to those beatific countries added to the training of experts can gain knowledge. Therefore the belief of all the factors that surround outsourcing, you can be sure that it is a beneficial measure for Cardinal honest performance.


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