The Challenge of Global Delivery

Global delivery models have been adopted, in one form or another, by most major corporations. Mergers and acquisitions, globalization, technology breakthroughs, and the quest for low cost solutions are just a few of the reasons for this phenomenon. Most Fortune 1000 companies have taken advantage of the plethora of ‘global’ service providers to supplement, or even supplant, their internal IT organizations. There are countless vendors that offer a ‘global delivery’ strategy. Unfortunately, many of these organizations implement a distributed model without having the systems, methodologies, and support mechanisms that provide a path to success.

Distributed delivery, especially global delivery, is not easy. Human and technical communications, different time zones, cultural differences, and poor methodologies are just a few of the issues that can doom even the most modest of projects. All too often we hear of projects that ‘went offshore’ with the promise of lower cost and greater quality, only to experience the opposite: higher cost and poorer quality. Further, there is often surprise and anger over how much time and effort is required on the part of the customer.

While the frustration within many organizations grows, all is not lost. A common sense, practical approach to distributed delivery can and does work. If your organization has, or will be choosing, a vendor partner, there are a number of issues that you need to address. Let’s explore what you and your chosen vendor must have in place for a distributed delivery model to succeed.

1 – Requirements Definition

This should come as no surprise. One customer recently revealed that an internal study suggested over 95% of project delays and cost overruns were directly related to their inability to accurately capture business requirements. They are not alone in experiencing this problem. Any development or support life cycle would be crippled by an incomplete or inaccurate understanding of the business case. Too often, organizations do a poor job of defining requirements, then go off and do a terrific job of developing the wrong solution. The complexities inherent in distributed delivery (see above) only serve to exacerbate the problem when developing from erroneous requirements.

Look for a vendor that has a defined process regarding Requirements Definition. Once the business requirements have been defined, the vendor must be able to validate them. From an investment perspective, the requirements definition process should be the point in any project life cycle where you as a customer devote your most time. It will be well spent.

2 - On site presence

During any project, there are tasks that need to be accomplished ‘on site’ at your location(s). These tasks include requirements definition, project management and reporting, high level design, and coordination of off site resources to name but a few. Vendors commonly refer to these customer facing functions as ‘knowledge intensive’ tasks. When working with a vendor, continuity within these critical functions is a key to success. Many offshore providers will send resources to your site, but only in three month increments. As a result, synergy and intellectual capital are lost. Look for vendors that have an established local presence in your area. Expect these vendors to provide local resources that can remain with you for the duration of the project.

Further, the vendor’s local office will be your primary point of contact with the vendor company. If a potential vendor does not have a local physical presence, their ability to respond quickly to daily issues will be severely impacted. Doing business with a vendor’s local office usually affords you much more responsiveness. Optimally, you want a vendor that can provide accountability at a local level, backed by the resources of a financially viable national organization.

3 - Delivery capability

Just as there are clear ‘knowledge intensive’ or on site functions within any project, so, too, are there ‘labor intensives’ tasks. These include such things as detailed design, coding, and various levels of testing. These labor intensive activities are the best candidates to be conducted off site, and it is in these areas where you can expect to gain the most cost savings. Look for organizations that utilize full time employees in their off site development centers as opposed to contract labor. The full employment model is more likely to provide resources that will be with the project throughout its duration. Further, employees will understand the vendor’s methodology, and are more likely to have incentives for project success. Choosing a vendor who has a plan in place to actively mitigate staff turnover is an often overlooked factor in overall project quality.

Too many vendors equate headcount with delivery capability. The fact that a vendor has 2,000 resources located in an off site facility does not ensure project success. Rather, choose a vendor that can demonstrate a proven delivery methodology. The methodology should be clear, concise, and time-tested. The vendor should have both internal (project auditors) and external (CMMI, ISO) project governances to which it strictly adheres. Further, there should be a seamless exchange of tasks between the on site and off site teams, and the vendor must be able to clearly articulate how its methodologies facilitate smooth transitions.

Also, don’t let a vendor tell you that there is only one way, theirs, to manage a project. Find a vendor that is willing and, more importantly, able to customize their delivery and project management methodologies to accommodate your unique requirements. A process that is too rigid to accommodate change is likely also too rigid to accommodate the daily twists and turns of the normal project evolution.

4 - Communication plan

Clear communication is a critical success factor in any distributed delivery engagement. In a distributed environment, communications issues range from production support calls to data security issues, and the people that need to be informed/involved run the gamut within the customer and vendor organizations. Choose a vendor that recognizes this fact and demonstrates logical paths of communication. Everything from how developers will interface with end users to the frequency of executive steering committees, and everything in between, should be discussed and agreed upon prior to project inception. Do not let the issue of communication be minimized.

5 - Project Status ‘Visibility’

Wherever possible, the vendor should utilize technology to communicate up to the minute project status. As an example, look for a vendor that has a web accessible ‘project book’. As a customer, don’t be shy about asking for real time access to project status. Some vendors have designed systems that make every project artifact but code available for review. Such a tool is an invaluable asset for maintaining schedule integrity, facilitating problem resolution, and ultimately ensuring quality. Insist that your chosen vendor demonstrate their tool to your satisfaction.

6 - Geographic Sanity

Businesses today are facing increased governmental and consumer pressure regarding offshore initiatives. Data security requirements, questions about employee screening, and concerns regarding a pending labor shortage are causing many organizations to look for alternative delivery vehicles. A few vendors are now offering domestic alternatives. The problem with many ‘global’ delivery providers is that they want to move everything offshore. Often, the best solution may be a combination of domestic and international delivery functions. Don’t be swayed by a ‘one size fits all’ approach.

In choosing a domestic vendor, remember to apply all of the decision criteria mentioned throughout this article. A domestic center can still be a thousand miles away from your local office. Their methodologies must be industrial strength and proven. A domestic provider will still need to assign local, on site resources to your facility; don’t assume that because they are domestic they have a local presence. While a domestic alternative can certainly sound appealing, your due diligence process must remain vigorous. Ensure you apply the same inspection rigor to your domestic alternative as you would to an international solution.

Conclusion:

Implementation of a successful global delivery model is not an easy task, but it is achievable. When selecting a vendor partner, be sure that the organization has a local office in your area. Be comfortable with their ability to staff the on site tasks with appropriate, long term resources. Also, be sure that all knowledge intensive tasks will be conducted on site, not remotely. Ensure that they have a process for accurately capturing and validating business requirements. For the off site, labor intensive tasks look for employee based centers that follow a proven delivery methodology. The vendor should be able to provide simple yet complete communications plans that address the myriad of issues inherent in global delivery engagements. Finally, ensure that the proposed geographic delivery solution is one that fits the dynamics of your business problem, and not a ‘one size fits all’ solution. Address all of these issues up front and you will be well on your way to global delivery success.