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    Rethinking IT Outsourcing: The New IT Offshoring
    Rethinking IT Outsourcing: The New IT Offshoring
    Rethinking IT Outsourcing: The New IT Offshoring
    Ebook148 pages1 hour

    Rethinking IT Outsourcing: The New IT Offshoring

    By Frank Howard

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    About this ebook

    Describes the superiority of IT offshoring over old traditional IT outsourcing by detailing the weaknesses of outsourcing and the ways that offshoring solves them. It describes how offshoring puts the company using it in charge, not the old traditional IT-outsourcing company.
    LanguageEnglish
    PublisherBookBaby
    Release dateAug 4, 2018
    ISBN9780999873212
    Rethinking IT Outsourcing: The New IT Offshoring

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      Book preview

      Rethinking IT Outsourcing - Frank Howard

      Foreword by

      Chiranjoy Das

      CIO, SimpleTire

      Copyright © 2018 by Frank D. Howard

      All rights reserved. This book or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the publisher except 1) as permitted by U.S. copyright law and 2) for the use of brief quotations in a book review.

      For permissions, contact:

      Larchmont Publishing

      3470 Olney-Laytonsville Road, #296

      Olney, MD 20832 USA

      www.LarchmontPublishing.com

      Direct inquiries to: info@LarchmontPublishing.com

      Limit of Liability/Disclaimer of Warranty: The author has made every effort to ensure the accuracy of the information within this book was correct at time of publication. The author takes no responsibility for any loss, damage, or disruption caused by errors or omissions, whether such errors or omissions result from accident, negligence, or any other cause, and specifically disclaims any implied warranties of merchantability or fitness for a particular purpose. The information contained herein may not be suitable for your situation. The author shall not be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

      Microsoft and Windows Server are registered trademarks of Microsoft Corporation.

      Printed by CreateSpace

      First Printing, 2018

      ISBN 978-0-9998732-0-5 (paperback edition)

      ISBN 978-0-9998732-1-2 (electronic edition)

      Copyright Registration Number: TXu2-084-528

      Library of Congress Cataloging-in-Publication Data:

      Howard, Frank D.

      Rethinking IT Outsourcing: The New IT Offshoring / Frank D. Howard.

      Library of Congress Control Number: 2018907120

      Printed in the United States of America

      Dedication

      This book is dedicated to my wonderful wife and life partner, Denise. Your unwavering support, encouragement, and patience amaze and sustain me.

      Acknowledgements

      Writing and publishing a book is no small undertaking, and I am fortunate to have worked with so many talented professionals who made it enjoyable and rewarding. I am deeply indebted to you all and extend my heartfelt gratitude.

      Many thanks to Richard Burke, Keith Crispin, and Jon Rance, my colleagues at AoteA Global Services. You gave me the inspiration to write this book, and your contributions made it possible.

      Anna Paige, Content Pro & Consultant (www.APaigeWriter.com). It may be a cliché in the Acknowledgements section of many books, but in this case, it’s true: This book would not have been possible without you! You possess an understanding of both strategy and tactics, business acumen, and a sense of humor, too. That’s a rare combination and you were invaluable to me as I wrote this book.

      Who Should Read This Book

      Can you relate to any of the following statements?

      The idea of IT outsourcing is new to me and I’d like to learn more.

      I’d like to try outsourcing some IT work, but I’ve heard some horror stories, so I’m not sure it’s worth the risk.

      I tried outsourcing IT work to a provider in India (or elsewhere) and it was a disaster. If I knew of a better way to mitigate the risks, I’d try again.

      If any of those thoughts has ever crossed your mind, this book is for you! The good news is that traditional outsourcing is on its way out, along with its associated headaches. So, if you have mixed feelings about outsourcing because of all the negative things you might have heard or experienced personally, we hope you can put those aside and open your mind to a new paradigm: It’s called IT offshoring.

      We wrote this book with a surprisingly broad range of readers in mind:

      Leaders in business, government, academia, and non-profit organisations—in other words, anyone who is responsible for achieving bottom-line results and organisational objectives

      IT professionals such as C-suite executives and managers who oversee software development and other critical areas within organisations

      Human resources professionals who would like to learn a novel way to increase retention of star performers and other key employees in their IT departments

      Forward-thinking entrepreneurs seeking innovative ways to gain a competitive advantage by bringing value to their market

      Anyone interested in global talent mobility, and the role offshoring plays in it, in our increasingly connected world

      Anyone with a jaundiced view of outsourcing who is open-minded enough to learn how offshoring is superior to outmoded outsourcing models

      Table of Contents

      Foreword

      A Special Message from the Author

      Introduction: What is IT Offshoring?

      Chapter 1      How Outsourcing Transformed the IT Industry

      The Early Days

      The Y2K Crisis Created an Overwhelming Need for Programmers

      India Flooded the Market with Cheap Skilled Labour

      A Blue-Chip Lawsuit Changed How the IT Industry Hires Workers

      Now There’s an Even Better Way to Outsource

      Chapter 2      How IT Offshoring Works

      Hiring IT Contractors

      Contracting foreign workers:

      Hiring a Traditional Overseas IT Services Firm

      The New Model: IT Offshoring

      The Difficulties Inherent in Establishing Your Own Captive

      You Don’t Need to Own a Captive Centre to Do IT Offshoring

      The Advantages of Offshoring with AoteA

      Why East Africa?

      How East Africa compares with other popular offshoring locations:

      Chapter 3      The Dark Side of Traditional Outsourcing

      How Outsourcing Can Create Public Image Problems

      How Outsourcing Can Make Workplace Morale Plunge

      Foreign workers can introduce cultural problems into the workplace:

      How Lack of Accountability Can Undermine Profitability … and More

      How Top Outsourcing Firms Perpetrate Abuse on Workers

      Chapter 4      Navigating Security Vulnerabilities

      How IT Outsourcing Can Compromise Your Intellectual Property

      The global counterfeiting crisis:

      Don’t trip over TRIPS:

      How to protect your intellectual property:

      How IT Outsourcing Can Compromise Data Security and Cybersecurity

      Common types of internet security threats:

      Cybersecurity challenges in developing countries:

      Legal protections against international cybercrime:

      The EU is taking a tough stance on data privacy:

      How to decrease your vulnerability against data breaches and other cybercrimes

      How AoteA Protects Your Security

      Chapter 5      The Main Causes of IT Outsourcing Failure

      Unrealistic Expectations

      Poor communication

      Poor performance

      Conflicting Interests

      Public Opinion

      Chapter 6      How IT Offshoring Puts You Back in the Driver’s Seat

      You Save On Development, IT, and Infrastructure Costs

      You Get a Branch Office with Your Own Dedicated Resources

      You Can Choose Your Own Staff from a Rich, Stable Talent Pool

      You Can Ramp Up Quickly

      You Can Transfer Knowledge in a Variety of Ways

      You Don’t Have to Babysit Your Offshore Team

      You Get to Focus on Your Growing Your Business

      You Own the Project

      You Control Data Security

      You Get Your Product(s) to Market Faster

      Contract Negotiation Is Simple

      There are No Pricing Surprises

      Chapter 7      The Global Talent Mobility Advantage

      The Evolution of Global Talent Mobility Through the Eras

      Offshoring to Gain Access to Talent, Drive Down Costs, and More

      How Smaller Organisations Can Capitalise on Offshoring

      Chapter 8      The Top 10 Disadvantages of Traditional IT Outsourcing

      It Can Ruin Your Company’s Reputation

      Data Security Vulnerabilities

      Contract Negotiations are Horrendous

      It’s Not Always Cheaper

      No Continuity of Resources

      Time Zone Challenges

      Communication and Language Barriers

      You Can’t Choose Your Employees

      Poor Quality Services

      Unprofessional Workers with Substandard Skillsets

      Chapter 9      The Top 10 Advantages of IT Offshoring

      1. No Real Estate

      2. Top-Notch Talent

      3. Time Zone Advantage

      4. Eliminates HR and Employment Legislation Hassles

      5. More Time to Focus on Projects

      6. Responsiveness and Scalability

      7. Security, Control, and Confidential Information

      8. No Hidden Costs

      9. Continuity

      10. Retention Tool for High Performers

      Chapter 10      The Top 10 FAQ’s About Offshoring

      1.      Isn’t IT offshoring risky?

      2.      How do we know your overseas resources are adequately trained?

      3.      Do your overseas resources have experience in <insert specialised skill here>?

      4.      What if we need to make a change after the contract is signed?

      5.      Will your overseas resources’ holidays conflict with our project schedule?

      6.      How can we protect our intellectual property?

      7.      How can we be sure your overseas resources aren’t being underpaid or mistreated?

      8.      How can we address our customers’ and employees’ concerns about layoffs?

      9.      If we start offshoring IT work, won’t we risk losing our best and brightest developers because they will fear they might lose

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