Knowledge Management of Global WorkFrank Harmsen

Faculty name

Agenda

• Welcome to Ernst & Young! • IT Knowledge in a Global Context• The ‘Distance’ notion• Keeping the Balance - The 6P Model

Faculty name

Faculty name

Faculty name

Analysis

Design

Build

Test

Impleme-mentation

Amsterdam

HyderabadNew York

Faculty name

Analysis

Design

Build

Test

Impleme-mentation

Amsterdam

HyderabadNew York

Faculty name

Drivers for Offshore Outsourcing

Decreasing Availability of Skilled Personnel

Shortage of skilled IT workforce in developed nations Rising costs of Manpower in developed nations Growth of highly-skilled IT personnel in several low cost

developing countries

Emergence & Evolution of Outsourcing Companies

Increased maturity of the web & state-of-the-art infrastructure being developed worldwide

Evolution of successful distributed delivery models leading to a wide range of IT work being executed from offshore locations

Increasing Competitive Pressures

Increasing globalization and evolution of disruptive technologies is forcing companies across industries to: Provide superior customer service Reduce cost of operations across board Continued focus on rapid implementation of IT projects

Faculty name

Onsite

Offshore

Onsite: Various locations (e.g., Netherlands) Retention of regional business

knowledge Continuity Local language Single point of contact

Offshore: SE Asia, China, Africa Lower cost Resources Quality

Nearshore

Nearshore: Spain, Canada, Mexico Easier Travel Cultural Similarities Time Zone Nearshore technical

skills to deal with show-stoppage situations

Faculty name

Transportation costs for bits are zero

Faculty name

10

Client interaction, Interviews, Reviews, Program Leadership, & Goal-Setting

Analysis and synthesis Background research, thought leadership, & information support.

Architecture, Requirements, Change Mgmt, & Implementation

Requirements analysis, High level Design, & Prototype building, & Implementation support

Detailed design, Code Development, Testing & Integration

Client Interaction, Process Mapping, Solution Definition, Architecture, Change & Program Mgmt

Prototype Building, High Level Design, & Implementation Support

Custom Components, Integration Interfaces, & Reports Building

First-level support, Facilities support, & Program Mgmt

Near-site support centers, Service Redundancy

Large Offshore Centers, Core Service Delivery

(e.g. Captive units of GECIS, American Express, Citibank, British Airways)

Source: Infosys Framework - Evolution of GDM= Lower Ratio of Resources

= Higher Ratio of Resources

On site Nearshore Offshore

Strategy and Roadmap Definition

Application Development, Integration and Maintenance

Systems Integration and Package Implementation

IT and BPO Support

Organizations determine their desired / optimal global locations for various activities

Faculty name

11

Faculty name

Faculty name

13

India China USA0

50

100

150

200

250

300

S/W Engg.ManagerCountry

USD

'000

/ An

num

• Overall a 25% to 35% cost advantage is expected in offshore destinations versus costs in the US

• The primary source of benefit is salary, but infrastructure, training and other costs are likely to be higher offshore

General Salary LevelsSalary Cost at Infosys

Faculty name

CultureGeography

Time ZonesGovernance & Control

LanguageStability

SecurityLegislation

Knowledge

Faculty name

Distance Matters! (1)

• Collaboration over distance is hard… particularly…– for innovative activities– when you need to be close to your

customer– when requirements are not well-specified.

Faculty name

Distance Matters! (2)

Negative impacts of distance:– Slows work– Leads to breakdowns– Increases chance of failure– Increases risks– Requires more oversight, control,

governance, travel.

Faculty name

(Fabriek, 2007)

Faculty name

Paradigm

Shorten the distance(s)! Balancing the 6 P’s:

Faculty name

Paradigm Underpinning Way of Thinking, e.g.

Anglo-Saxon vs Rheinländisch East vs West Structured vs Evolutionary

Faculty name

People Culture Coherence Human, Social and Customer Capital

Faculty name

Process Delivery models

OneTeam Networked Front Office / Back Office

Methods and Method Engineering One way of working… But tailored to the situation

at hand

Faculty name

Planet Sustainability, ecological footprint Corporate responsibility Labor environment at offshore locations

Faculty name

Profit Benefits versus costs Investments in retained organization Intellectual capital!

Faculty name

Products Software tools

Wiki Proprietary tools, databases

Hardware tools Videoconferencing

Faculty name

Example of a Product: CPort

Faculty nameKennistechnologie

Questions?