Outsourcing Trends in Outsourcing of Research Paper

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The focus of this area has shifted to Web application development including the development of complex, highly integrated enterprise system platforms beyond the scope of client it departments. This shift has actually accelerated the financial performance of Indian outsourcers to such a great extend that their goals are now to catch IBM in revenues and eventually surpass them in terms of consulting revenue. The outsourcing of complex it projects however must be exceptionally well managed and orchestrated to ensure the goals of the client are still achieved as the development takes place (Hsu, Wu, et.al.). Due to the high value of programming and development talent in Indian and Chinese outsourcers, this area is the fastest growing of their core businesses. In this area, there are many opportunities for students to advance their careers.

The three most important strategies students can take to capitalize on this trend is to first concentrate on their information technologies (it) and system knowedlge to the enterprise software level (Hsu, Wu, et.al.). This is critically important as the student, progressing into the role of system architect, will need to guide the intricacies of the integration project and guide overall development. A second critical skill is the ability to create an effective series of strategies for managing risk of the system integration and if necessary, the system replacement strategies across client and development platforms. This is a critical skill learned through experience, yet can also be part of any it training and development. The third approach students can take to capitalize on this trend is to concentrate on learning how best to manage Service Level Agreements (SLA) and the contracts necessary for managing system integration projects.

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This skill set is invaluable as a career progresses through outsourcing from an it standpoint.

A third dominant trend in outsourcing today is defining and executing global programs using analytics and Business Intelligence (BI) applications to track progress on Balanced Scorecards (BSC). This trend is accelerating quickly as the dashboards are increasingly relied on creating more effective development, service and support programs across diverse development teams in it (McIvor, et. al.). As the outsourcing companies are increasingly relying on development teams across a very broad geographic region, the ability to track project performance to a very granular level with analytics and BI tools is now a skill set in high demand (Harland, pgs. 835-837). Outsourcing clients are demanding dashboards to track the status of their projects over time, requiring greater visibility to reduce the risks of their outsourced programs.

For students, the implications are clear. First, there is the need to gain a strong insight into how best to use analytics and BI applications across a variety of computing platforms. Second, being able to define metrics and measures of performance is critically important as a skill set. Third, the need for creating a highly effective program for managing all the metrics and drive long-term change within the client organization is critically important. All three of these skill sets will assist any student to excel in this role of managing outsourcing projects to a very granular, focused level. For the outsourcing partners, analytics and BI measures of performance can create a much higher level of trust and insight into the projects they are paying for.

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