In the world of IT development, data protection is a top priority.   Data faces many of the same risks when sent to a global sourcing provider as it does when kept in-house.  Intellectual property is one of the greatest assets an organization can possess and proper security measures should always be implemented to protect it.  Problems with security can be avoided when an outsourcing company takes precautionary steps before sending work to a global sourcing provider.

When searching for a vendor, there are certain criteria that are considered when choosing a company.  One of the main factors that should be included in the decision process is the vendor’s data security policies.  There should be clear, enforceable policies in place and the access controls should be identified.  Many of the larger vendors will have certifications showing that information security practices are upheld.   Some firms will have obtained the ISO 27001 certification, which means the company documents and follows information security practices and controls.

It is important to find out how the vendor enforces access controls and how these controls are updated when employees change jobs or leave the company.  Some vendors will offer to provide development on a dedicated data server, which will include audit control access. Once a vendor is chosen, IT managers must make sure the company follows the outsourcer’s industry best practices and compliance guidelines of the home country.

Whatever policies and access controls that are discussed should be outlined in detail in the contract.  A signed non-disclosure agreement, non-compete agreement and no solicitation agreement can provide additional protection for the outsourcing company.  If a vendor refuses to include data protection information in the contract, it would be wise to consider a different global sourcing provider.  Even after the initial terms are agreed upon and the contracts are signed, an outsourcing company should perform regular audits to ensure that data privacy policies are being followed and enforced.

Only the information that is crucial to the project should be shared with the global sourcing provider.  The outsourcing company will have to carefully evaluate the propriety data and technology that are needed to successfully develop the outsourced projects.  In-house employees should be aware of what information is acceptable to share when talking with the global sourcing provider.

By being aware of the potential challenges associated with data protection and taking preventative steps, an outsourcing company can reduce the associated risks.  A&E Consulting can help you evaluate data protection issues when global sourcing and will oversee the first outsourced project. 

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There are some major differences when it comes to managing a global sourced IT project versus an onshore project.  Managers must be aware of the unique challenges presented by sending work to a global sourcing provider.  By taking preemptive measures, a manager can ensure the success of the project.

One of the most important steps to take when managing an IT project is to create a plan.  Even if a project is simple or fairly small, the outsourcing company and the vendor can greatly benefit when all of the project details and deadlines are outlined.  The plan should include specific processes for completing the project and the expectations.  A plan is only good if those involved are aware of it and understand the requirements.   Therefore, after the plan is completed, all of the employees that are involved in the project development should receive a copy.  When a project is to be developed through global sourcing, then the plan should also be sent to the vendor’s project manager and employees.

Most IT projects need to be completed in a specified timeframe.  When a project is delayed, the outsourcing company stands to lose valuable time and money.  Before a project begins, deadlines and goals should be set and communicated to the global sourcing provider.  Tasks should be broken down into steps with assigned dates.  By setting deadlines and creating goals, the vendor becomes accountable and the outsourcing company can see the results more quickly.  The outsourcing company will then be able to address any problems that may arise.

Communication is crucial to the success of any IT project.  When utilizing global sourcing, poor communication can lead to a project’s failure.  Managers should set regular review meetings with the vendor to track the progress of the project.  Regular communication will help reiterate the outsourcing company’s expectations and will answer any questions regarding the project.

A common mistake made by IT managers is their lack of involvement with an outsourced project.  Many managers feel that since the project was sent to an outside vendor, they do not have to be as actively involved as they would be if the project was completed in house.  This thought process can be damaging to the project.  An IT manager must stay involved in overseeing a project, even when it is sent to a global sourcing provider. 

An IT manager must also understand the unique set of challenges that are associated with projects sent to global sourcing providers.  The difference in time zones, cultural barriers, geographical distance and security issues can all harm an IT project.  If an IT manager is aware and addresses these potential risks, the chance of a successful project significantly increases.

A&E Consulting can show you how to successfully manage an IT project sent to a global sourcing provider.  We will help you choose the right vendor and will oversee your first project.

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There was a great article posted on CIO.com in March 2008, titled, “Outsourcing: The Pros and Cons of Offshore Remote Infrastructure Management.”  The article discussed many of the recent trends related to remote infrastructure management, including the increase in competition caused by offshore vendors.

Infrastructure is generally managed remotely, even if the data center is located nearby.  According to Bill Piatt, CIO of the International Finance Corporation, “remote infrastructure management is something that virtually every organization does every single day.”  He goes on to say that people think there is a difference if that work is done offshore.   However, recent trends show that remote infrastructure management is being included as an additional service in global sourcing.  Numerous global outsourcing proposals now contain some form of offshore infrastructure delivery of services.

Many of the large global sourcing providers believe that infrastructure management will be the next main revenue source.  IT vendors are increasing their delivery capabilities to attract more business from outsourcing companies.  From 2003 to 2005, the number of vendors who have the ability to handle infrastructure tasks tripled to 15,000. 

The utilization of global sourcing providers for services involving infrastructure management has become more mainstream.  The market for remote infrastructure management is estimated to be somewhere between $80 billion to $120 billion.  Experts feel that global sourcing providers will gain additional market share and will continue to grow by 20 percent each year.

The article on CIO.com listed the percentages of infrastructure support functions that could be sent to a global sourcing provider.  These functions included:

• Network Services 80%
• Internal Help Desk 75%
• Servers 70%
• Maintenance 60%
• Administration 35%
• Mainframe 30%
• End-user Devices 15%

A report published last February by India’s National Association of Software and Services Companies (Nasscom) asserts that up to 75 percent of all infrastructure management roles could be outsourced globally, which would create a $26 billion to $28 billion revenue potential by 2013.   The report stated that Indian companies could capture approximately 50 percent of this revenue. 

There currently is a lot of competition among infrastructure providers.  Global sourcing vendors have been purchasing infrastructure service providers to grow that segment of their businesses.  The recent changes will give outsourcing companies additional options, but can also create more confusion on making the right decision for remote infrastructure management.

There are benefits to sending infrastructure management to a global sourcing provider, but it may not be a good fit for every organization.  A&E Consulting can help you weigh the benefits of working with a global sourcing partner and will oversee your first outsourced project.

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