Three More Outsourcing Myths
Note: This post is in response to the CIO Magazine article: “ 11 Outsourcing Myths Debunked,” by Stephanie Overby.
While IT Outsourcing has played a significant role in business development over the last several decades, the outsourcing environment continues to evolve as technology leaders are forced to strategically rethink their approach to stay agile and help their businesses grow.
Now, more than ever, companies are pivoting, searching for trusted partners to help streamline resources, differentiate products, and accelerate digital solutions. As a result, SMC Squared has seen tremendous growth over the last six months as IT leaders look for support in implementing a global talent model that CAN achieve desired outcomes.
Several new realities of outsourcing strategies exist. Client Director Jessica Parker weighs in on some of the most common misconceptions of outsourcing and how SMC Squared ensures a successful client relationship that’s built for long-term success.
Myth: Outsourcing IT means outsourcing responsibility
Anyone that has worked in tech has outsourcing stories. “I once worked with a company that chose to outsource the implementation of their new enterprise-wide financial management system. The implementation struggled because too much of the work was delegated to people who didn’t have the business or system knowledge needed to make the best decisions. The vendor was financially incented to drag out the contract and more than a year after go-live, issues were still causing production problems,” reflected Parker.
“Contrast this with the SMC Squared approach to insourcing, which has a one-team approach. We’re convinced it’s the model, and how its incented, that drives behavior and results. SMC Squared hires talent to fit the mission and culture of each client. When you are part of an employee-centric, dedicated team, you are committed to the team goals and helping your teammates be successful. And, with our proprietary GIC model, clients are never charged overtime.”
“As an example of our one-team approach, one client’s project team had a deadline to have several complex system enhancements available within a short time frame in order to demonstrate the functionality for a large prospective customer. The team, made up of US-based client employees and India-based SMC Squared employees, collaborated to develop a plan to deliver the enhancements on time. When a critical issue was identified, the whole team came together to ensure everything could be resolved on time. The client demo was successful and they won the business. Execs recognized a job well done across global locations.”
Myth: Companies that outsource IT lose their best employees
“Turnover happens at every company, especially with IT resources. However, with our insourcing model at SMC Squared, turnover is considerably less because our teams are specifically hired to work with the client and are connected to the client organization’s culture, mission, and values alongside ours,“ said Parker.
As Client Director, Parker plays a key role in ensuring the overall success of our client partnerships. She immerses herself in the company culture to become an extension of the team, allowing her to actively direct and provide valuable insight to partners in the US while creating inclusive environments that help foster innovation and overall productivity for our teams in India.
“We take the time when onboarding to record sessions and keep the information available on the client network for anyone new to a team, whether that person is joining at the client site or on our team in India. By having a team structure in place with strong leaders, onboarding and transition can be successfully handled by the team in India,” said Parker.
Myth: Outsourcing is getting easier
“People today have a better understanding of outsourcing risks and issues. Still, companies often fail to realize that outsourcing lower costs don’t necessarily translate to productivity and quality. Governance, communication, integrations, and finances still need to be understood and managed, however, often this is an afterthought at best,” said Parker.
“That level of management is planned and executed with SMC Squared’s clients. That’s why as part of our analysis and engagement with each company, we collaborate to establish a clear governance model, outline a communication plan, identify integration points, and align with the finance team. This structure supports clear and open lines of communication and ensures stakeholders are well informed.”
For more information on how our recruit to fit talent approach and GIC model will work with you click here.
In the post-COVID-19 world, enterprises are exploring new ways of operating and rethinking business models. Priorities have shifted, and in response, Wavestone offers new ways of architecting your sourcing relationships to accelerate cost savings, service delivery efficiency, and flexibility.
Many IT leaders are familiar with the traditional services model that focuses on obtaining Indian engineering talent as commoditized labor. But the services model poses many challenges for corporations as they often discover that delivery doesn’t always meet expectations.
This is an interview published by HMG Strategy, the world’s leading digital platform for connecting technology executives to reimagine the enterprise and reshape the business world.
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