Off-shoring Project

Global IT Organization

Situation

A global firm with revenues of more than $30B was committed to transforming its IT organization by significantly lowering operating costs while providing higher value-adding skills to the business, rather than increased commodity skills, such as programming.

The first element of this initiative was to design and implement a U.S. off-shoring plan within the next year. The leadership team felt confident in their team’s level of talent, clarity of direction and careful planning. Flawless execution was the key to success, however, there was immediate worry and resistance throughout the organization about change and layoffs that might accompany off-shoring. Empowering high quality execution was where SDI made its contribution.

Results Our Client Produced

  • In the first year, initial off-shoring program savings covered start up costs plus $3 million in cost avoidance. This program continues to deliver $5 million per year in savings.
  • Managers who easily could have gone through the motions of compliance and declared the program unworkable at the very first obstacle, instead became champions of off-shoring.
  • The global off-shoring strategy was jump started and an off-shoring playbook was created, which included processes, templates, tools and methods to drive a successful off-shoring program. The playbook was then provided to IT teams across the globe.
  • A foundational volume of work was established with the offshore vendors and favorable rates and high-quality resources were secured for other off-shoring initiatives.
  • A senior manager responsible for a significant portion of this engagement said in his acknowledgment of SDI’s contribution:

    “In order to manage the numerous issues that arose with the program, the team had to engage in all levels of conversations, including possibility, action, breakdown, etc. They overcame all obstacles, they found solutions to tough problems, they bridged cultural gaps, they counseled and supported the impacted employees, and they later became mentors to other managers facing the offshoring challenge.”