Evaluating the Health of Your Outsourced Endeavor

NeoIT, an offshore consultancy service with headquarters in San Ramon, CA, released a whitepaper, titled, “Healthcheck on Global Operations.” The healthcheck is an evaluation of the offshoring process to gauge the quality and progress of “all aspects of the engagement, including strategy, human resource policies, infrastructure, governance, management quality, financial performance, security, contingency planning and overall business process efficiency.”

An unwillingness or inability to do this can result in project failure. NeoIT identifies five sources of potential failure:

  1. Lack of executive sponsorship
  2. Failure to invest in the global operation ($/resources)
  3. Poor governance planning and implementation
  4. Too much too soon (No road-map or tactical plan)
  5. Mismanaged and/or misguided expectations

Healthchecks, done at scheduled intervals, can pinpoint weakness and lead to remedies. (Of course, the paper lightly suggests you might want to bring in an outsider to perform the service…)

When should you perform a healthcheck? NeoIT suggests it take place particularly during these periods:

  • Prior to completion of the outsourcing stage.
  • Prior to finalizing the contract.
  • Post-transition.
  • Midway through the engagement or one year after completion of the transition.
  • Prior to contract termination or extension.

You can download your copy of the PDF document here.