January 17, 2012: As the outsourcers reduce the number of onshore employees, you need to be prepared to absorb the shock. The following tricks will help you to drive the projects forward as the offshore IT service providers reduce the number of onsite staff who used to act as liaisons between customers and service providers.  

If you have been outsourcing work to an offshore service provider, it is sure that you have observed a trend where very low resources are provided by the service provider to manage the work at the site. Previously the offshore IT service providers which includes Indian suppliers  and their US based counterparts, used to connect the IT services projects and relationships with onshore staff acting as liaisons between client and service provider, majority of which have been silently moving more of that work overseas.

The cut in the number of US based employees has been due to the increasing pressure on Information technology service providers’ profit margins.

As a result interested offshoring customers should now be ready to face the consequences of reduction in onshore and on site headcount. The following are the tips to be considered.

1)      Conduct a Process Design Review

You have to ensure that the necessary on site roles that are needed for the continued operation of global delivery are filled. Make sure that short term gaps are managed with contract resources. To meet the long term requirements, talents developed in house will be suitable.

2)      Invest in change management efforts

It is necessary that the users are prepared to meet the sudden changes in the delivery model and the changes in their day to day working experience.

3)      Consider nearshore options

Service providers with various alternate delivery locations such as Mexico, with no visa issues should be considered. It will be easy for them to send workers to those locations to manage the project.

4)      Enhance your technology backbone

The offshore service vendor is likely to need higher end telecommunication capabilities to handle future projects. Make sure that you possess the right infrastructure and software to manage the proposed technology enablers of reduced on site staff. Also do not forget to design and implement effective internal training programs for the new tools.

5)      Revisit Contract pricing

In case the IT vendor is planning to move on site roles overseas, it might be the best time to renegotiate price. Sharing the benefits of sending projects to low cost locations will lead to a happier and healthier long term relationship.