ODC Management…How it’s Different ?

Gone are the days when outsourcing was done only for non-core services. In is the trend of outsourcing the business critical core functions to cost effective off shore countries like, Brazil, India, and China. What has transpired this global change? Is it something to do alone with the way projects are managed or is the trend of setting up the offshore ODC as well the fuel?
Well among many factors it’s seen that dedicated Offshore Centre’s have fuelled the offshoring / outsourcing of the business critical core functions.

To begin with let’s first see what ODC is and then see different parameters associated with ODC Management.

ODC Management:  Offshoring is defined as the movement of a business process done at a company in one country to the same or another company in another, different country.  (Source: http://en.wikipedia.org )

These clearly indicate, “ODC Management is much more than managing the outsourced project”. Let’s explore, the need, key challenges & some Critical Success Factors of ODC Management in comparison to Project, Program and Portfolio Management?

Typical Challenges in ODC Management

• Replication of Project Management models/frameworks at ODC.
• Resource Ramp Up.
• Differences in Legal Framework at Onsite/ Client Site and ODC Location.
• Cultural differences.
• Support For COTS (Custom Off The Shelf) Products.
• Ever increasing control of Business over IT.
• Multiple Vendor Interaction and Integration.

Key Components of ODC Management

• ODC Governance& Reporting.
• Facilities and Infrastructure Management.
• Recruitment and Human Resource Management.
• Legal and Administration Support.
• OPEX and COPEX Management & Control.
• SLA Management and Compliance.
• Onsite-Offshore Co-ordination and Communication.
• Technology Management.

Known risk for ODC setup

• Resource Movements & Attrition.
• Cost & Schedule Sensitivity.
• Performance Measurement at ODC Level.
• Environmental and Technology Stability.
• Lack of Micromanagement at Onsite and Pertaining ODC.
• Geographical Differences (Working Timings overlap not always possible)

Typical Triggers for Failures of ODC

• Outdated technology.
• COTS products instability.
• Un Foreseen Costs bubbling up.
• Resource Scarcity for the selected technology.
• Lack of Strategic Road Map.
• Unstable Core Business, no surety of Long term Strategy.
• Rigid Processes, difficult to change.

Critical Skills for ODC Management

• Proactive Thinking.
• Casual and formal problem analysis and Problem Solving
• Unbiased Decision making.
• Excellent Communication Skills.
• Follow-Up Skills.
• Cultural Sensitivity.

Why Choose ODC?

• Allows you to have “Complete Control” over the projects even in vendor organization.
• Allows you to retain the IPR (Intellectual Property Rights) for the products developed at ODC.
• Allows you to work 24/7, without following shift patterns and related costs.
• Allows you to operate on optimum cost depending on the geography of ODC.
• Allows you to select the resources and key project components.
• Allows you to leverage the partner’s expertise not available at On-Site.
• Allows you to register presence in new geographies without the worries of ownership.

When to Choose ODC?

• In House Project cost are moving northward majorly due to Resource and Environmental costing.
• On-Site Environment is unstable or instability is predicted.
• When business road map has been clearly defined.
• Need to register presence in different geographies across the globe.
• Scope of work seems to be ever growing.

Hope this blog helps you in understanding the concept of ODC and some of its associated Factors.  I look forward for your views and opinions both agreements and disagreements.

Systems Plus along with its offering provides Managed Captive services which is a unique offering based on Vendor hosted ODC Model. (Click here to know more)

About Author:

Pradip Sadare is Operations Manager with Systems Plus Pvt. Ltd. He enjoys relating management with everyday life aspects and works in Managed Captive Model(click here to know more about our managed captive offerings). He can be contacted at: pradip.s@spluspl.com. You can read rest of his musings at http://projectmanagementmusings.blogspot.in/