Maximize the Benefits of Outsourcing and Offshoring through Project Portfolio Management
Featuring Forrester Research
Introduction: A Tale of Two Companies
Under extreme pressure to cut costs quickly, the CEOs of two major corporations (Company A and Company B) direct senior management to cut 15% of staff and replace them with offshore resources. By looking at what appears to be the largest cost items, the CFO of Company A decides to go after IT for the bulk of the savings. He suggests to the CIO that there are opportunities to outsource various types of application development offshore and to set up a captive offshore operation for customer service. They analyze various offshore operations, but fail to do any internal analysis to determine potential “hidden” costs or whether the changes are likely to produce business value. Nor does Company A have any processes or supporting software solutions in place to help oversee these operations. The offshore effort fails to produce any cost savings. It does, however, produce a deterioration in customer service and a demoralized internal staff.
Company B approaches the imperative to cut costs more strategically. After an in-depth internal
and external analysis, executive management recognizes that outsourcing non-mission critical
application development and its billing and payroll operation to offshore vendors can generate
substantial savings. Based on its analysis, the company carefully prepares internal staff and vendorsfor the transition. It sets up a process and installs software solutions that will provide constant insight into project progress, maintain consistent business processes across the enterprise, and facilitate effective, ongoing communication between in-house staff and vendors. Company B realizes its savings goals and enjoys an enhanced industry reputation.
Download the entire white paper by filling out the form below. Fields marked with a * are required. 
