Planning

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TABLE OF CONTENTS

Planning Management Expectations 03

Planning Staff Role Expectations 07

Planning Application Sourcing Strategies 10

Planning BPO Sourcing Strategies 14

Planning Infrastructure Management 17

Sourcing Strategies

01

Executive Summary
Many global sourcing relationships
have been undermined by
executives holding unrealistic
expectations, like global sourcing
can cut 60%-80% of domestic
labor costs, process improve-
ments can be implemented in a
few weeks, etc. Internal global
sourcing project managers must
educate executives on the
subtleties of global sourcing,
especially the effort required during
transition to the new sourcing
reality.
A successful education program
should be based on the fact that
some people learn best by listening
and others by reading, some from
text and others from graphics. It
02
Planning
must also recognize that
executives are usually busy and
have limited time to learn about
outsourcing. Companies some-
times bring in industry “experts”
who may or may not understand
what can be achieved from global
sourcing. Written material must
always be available to answer
queries and test assumptions.
Global sourcing must be managed
as a “project” with short- and long-
term performance goals. By
agreeing on the metrics and target
results before signing a contract,
executives get the opportunity to
make informed strategic decisions
and understand consequences.
 Many companies have managers who engage
and deploy global sourcing within the
enterprise, only to have senior executives
with unrealistic expectations destroy the
credibility of the team and the project.
Executive expectations are created
from many sources, ranging from
magazines to peer conversations.
Internally circulated project materials must
emphasize the expected results and the time,
money and staff required for executives to
address expectation gaps at the beginning
of the discovery process. From initial
evaluation through implementation and
governance, executives must understand the
project’s scope, drivers, and objectives.
Global sourcing initiatives that have failed to
communicate the objectives of the strategy
properly and consistently invite backlash and
unnecessary internal stress.
Management of internal expectations is
primarily about communications. Every
individual in an organization has
preconceived notions about the merits
of global sourcing. Successful
communication involves a continuous stream
of statements on goals, expectations,
objectives, and results. Applying a “rule of
thumb” from the advertising business,
internal stakeholders need to “see”
consistent global sourcing messages 17 times
to be “familiar” with the work. Project
leaders must not expect executives across
the enterprise to understand, endorse, or
support a specific global sourcing initiative
based on a presentation or an email. The
best marketing and communication plans
include a series of metrics that measure the
“reach” as well as the comprehension of
messages. Often, gauges are used to gather
opinion – positive and negative – on the
message.
04
Global-Sourcing-in-Action
A publisher of financial analysis
wanted to understand and
communicate the real-world impact
that offshore services could provide.
The CIO observed that executives
were developing perspectives or
opinions about offshore services
based on incomplete information—
either from conferences, from
published articles, or service provider
promises. Inevitably each of these
sources provided insight that only
partially applied to the company’s
situation. While the CIO intuitively felt
that offshore would provided little
near-term benefit given the
company’s requirements, a feasibility
study was conducted to assess its
portfolio of applications and a few of
its business services to quantify both
risks and opportunities.
Every individual in
an organization
has preconceived
notions about the
merits of global
sourcing
The materials used
to educate and
inform company
executives can be
repurposed for
public consumption,
should local political
or social issues arise
Project managers can benefit by creating a
“straw man” strategy for internal circulation.
The proposal must contrast different
adoption approaches and include both positive
and negative market references. Since
most executives have preconceived
notions about global sourcing, it is
important to anticipate and prepare
responses for a full range of reactions.
The material must address the wide range
of concerns and justify focus on a single
course of action. A review cycle that gathers
diverse opinions and intelligence on potential
strategic conflicts is a critical part of this
process. Lasting support for a global sourcing
strategy is best developed within executive
suites rather than be forcefully introduced.
Dissidence will always exist; complete
consensus is rarely achieved. Company
leadership must understand exceptions to
and anomalies in the global sourcing strategy.
Information on the global sourcing strategy
must be redistributed widely as soon as the
Assessment Checklist
Have our competitors or other
companies with which we are familiar
(customers, suppliers, local firms)
demonstrated success in global
sourcing?
Project management practices include
marketing and communication tasks
that are well received by executives.
Our executives have experience in
global markets through our customers
or direct suppliers.
Line-of-business and administrative
management have earlier been given
leeway to innovative solutions that
have transformed our business.
Common Mistakes
Assuming that a purely financial
business case is compelling to all
executives.
Failing to reinforce consistent
messages about a global sourcing
strategy through a variety of media
and communications styles.
Ignoring objections from some
executives on the basis that the
objections are founded on
unreasonable opinions that will change
with time.
Remaining inflexible about a strategy,
blocking a pilot project or a small
victory that can pave the way for a
more comprehensive global sourcing
solution.
Inflating management expectations
by touting only success stories to
support a forming global sourcing
strategy.
05
 final decision is reached. The final strategy
must also document areas in which global
sourcing will not be used and the strategic
basis for the defined scope. The strategy
must include areas of focus, changes
required to current operations, risks
that will be mitigated by global
sourcing, and new risks that will be
introduced. The materials used to educate
and inform company executives can be
repurposed for public consumption, should
local political or social issues arise.
The important caveat for public information
about a global sourcing strategy is that
released information must be consistent with
the proprietary information on the strategy.
Executives must receive routine reports (at
least quarterly) that detail the status and
impact of the global sourcing strategy and
relationship. Ongoing results help
business units make decisions on
whether or not to broaden global
sourcing services to other business units
and technology areas.

Executive Summary
Staff transitions are inevitable in
the context of a globally sourced
solution. Experience shows that the
best transitions set staff
expectations early and provide risk
mitigation strategies to buttress the
transition objectives.
Ideally, the operations profile must
conform to a common process
model such as ITIL, COBIT, or the
Capability Maturity Model (CMM).
Within the context of such a process
model, specific roles for staff must
be defined for both transition and
steady-state operation.
The management must ensure that
the affected staff can see their
roles in the new solution clearly,
whether the roles involve new
responsibilities or a change in
employment accompanied by
retention bonus, severance
packages, and outplacement
services.
Marketing and communications are
essential throughout the strategy
development and transition
processes. Consistent, truthful
messages about the company
strategy are important for ensuring
smooth employee relations and
maintaining high morale.

06
 News that management is considering global
sourcing will permeate the company quickly.
Some employees will express dismay or
frustration because they do not like surprises
that impact their livelihood and careers. In
the absence of information, people naturally
assume the worst – that they will lose their
jobs. This will hinder current business
operations and endanger the sourcing
strategy. Employees that remain can also
exhibit passive-aggressive behavior long after
any redeployment action, caused by the
displacement of friends and associates.
Executives should anticipate this reaction
and be prepared with employee
communications, human resources
assistance, and public statements.
Marketing and communications
programs must replace inaccurate
assumptions with consistent, useful,
and honest information. Communication
plans include metrics to ascertain the reach
and acceptance of the global sourcing
strategy and transition. Different
communication goals are reasonable at
different points in time. Constituents will
gradually understand the objectives and
strategy, though not necessarily agree with
it. As more details are revealed, greater
confidence in the economic value of global
sourcing will develop, especially among
supportive and previously undecided
constituents.
Change brings opportunities. Advertising new
staffing and role opportunities with the news
of the changes will provide motivated
employees with incentives to support the
sourcing program. Working on a global
sourcing project provides excellent
experience and professional development
opportunities in the global economy. Rather
than giving the employees the trite
option of leading, following, or getting
out of the way, companies should
emphasize opportunities to develop
skills that are in demand in the global
market.
06
08
Maintaining institutional
knowledge about the
company’s architectures,
processes, and best
practices is a vital objective
of planning and transition.
Global-Sourcing-in-Action
A government organization considered
moving services offshore and was
considering strategic options. The CIO
chose to create a list of employees
that would be retained and those to
be deployed if the organization chose
to outsource. This list was accidently
published, creating chaos. After three
months of evaluation, selected
functions were chosen to be sent
offshore. Mismanagement had
caused significant turnover, including
several positions that were difficult
to replace because of the unique skills
sets they required. The organization
was forced to outsource functions
that were not strategically beneficial
since it was unable to deliver the
services internally.
The transition from current state to global
sourcing begins with the development and
analysis of process models. Process
definitions should be in plain language and
use standard formats for goals, workflow,
skills, staffing, roles, automation, best
practices, and metrics. To best support
process analysis and change, all models must
use simple, clear language and be consistently
attributed with cost, time, skill, and other
diagnostic metrics.
Maintaining institutional knowledge about the
company’s architectures, processes, and
best practices is a vital objective of planning
and transition. While establishing new
responsibilities, the management should take
a risk-adverse point-of-view to maintain key
personnel and develop succession plans.
Maintaining sufficient human capital through
the transition to steady-state operations is
critical, and good communications make the
difference between a controlled situation and
a mass exodus of the best and brightest in
the organization. When turnover risk is high,
executives may want to reconsider the global
sourcing strategy.
The future IT organizational structure
must detail the linkages among business
strategy, IT strategy, structure of the
current business, and the IT
infrastructure defined in the business
case. Within these confines, management
can map future roles and responsibilities,
policies and procedures, and governance
activities, including escalation procedures.
Specific metrics should be mapped to the
skills required to execute each process and
used to match the skill levels of the client’s
staff to the requirements of the defined
roles for the transition and steady-state
environments. This can be used to optimize
the client and service provider organizations.
It is important to provide consistent, clear,
and honest messages about a global sourcing
strategy from the moment the idea is taken
seriously to minimize negative reaction in
employees. These messages will also help
face of social, economic, or political backlash.
A key to overcoming bias is to make the
teams better acquainted. Sending employees
to offshore locations to meet the teams and
experience the local culture is a significant
step toward acceptance of new strategies.
Assessment Checklist
Does the company have a reputation
for handling employment actions fairly
and compassionately?
Have prior innovative strategies
strengthened the company’s bottom
line and given it experience in managing
business risks?
Is institutional knowledge collected
and codified into enterprise
architecture, including technical,
business process, and information
architecture?
Are company executives willing to
invest in the transition stage to ensure
success?
Does the company have proven
resources, internal or external, to
manage marketing and
communications effectively?
Common Mistakes
Withholding too much information from
the employee base under the guise of
trade secrets, confidentiality, or fear
of public reprisal.
Failing to inform mid-level managers of
the complete global sourcing strategy
before asking them to prepare for
staffing changes.
Not providing sufficient forums for
employees to discuss their concerns
and interactively learn about the
strategic justification for global
sourcing.
Using inadequate retention, severance,
and outplacement strategies to
preserve institutional knowledge that
was not captured earlier.
Assuming that the global sourcing
provider has the best solution to manage
staff expectations with little investment
or effort by the client organization.
09

Executive Summary
Many companies only think about
applications when considering
global sourcing. Application
development and maintenance is
the core of offshore services, but
clients vary in how they engage in
global sourcing. Companies with
little experience in global sourcing
often begin by contracting for a
specified number of FTEs.
Sometimes they take responsi-
bility for keeping FTE workloads
full.
As IT organizations become more
familiar with global service
providers, the relationship shifts
towards projects. Providers often
help design solutions that align
Planning
with business needs, develop and
integrate technologies with other
enterprise applications, and
provide ongoing support for the
help desk, including level-three
questions and root-cause analysis.
Companies with experience in
global sourcing use a wide variety
of services for application work,
including consulting, business
expertise, and packaged
application implementation. In
addition to developing trusted
relationships with global
providers, clients become more
skilled at purchasing and optimizing
results from global sourcing.
IT organizations are shifting offshore
non-legacy application support, Ensuring clear
including design and implementation of
packaged applications, remote
application management, and back-
transfer of control
office integration. As IT organizations
realign applications with business processes, for each project is
the growth in business process management
is driving derivative growth in supply chain
and customer relationship management.
essential as most
Moreover, application services are
segmenting into discrete markets for design,
projects fail due to
requirements gathering, development, and
testing. Segmentation is fostering new poor project
opportunities for IT organizations to
selectively outsource functions that augment management
internal projects without shifting entire
projects or teams offshore.
Global sourcing
Packaged application differs from
work is increasingly Global-Sourcing-in-Action
internally developed
using global sourcing for design and operated
and
services. Global
implementation. While 40%-50% of sourcing requires
the A large chemical company wanted
working
work is still done with the
on- or near-site, third-party
projects to evaluate which applications
organizations that operate in
are being managed and delivered through would most benefit from offshore
different cultural norms, and labor. The company categorized
companies that use offshore services. Global
often, at a different organizational its applications into portfolios or
sourcing is increasingly capable of providing
level. All these complexities must groups of applications with
design, implementation, business process
be managed in ways consistent common support requirements. It
expertise, and specialists in Java, ABAP, or
with business objectives. The focused on assumed benefits
.NET. This shift is reducing the average cost
relationship requires greater provided by offshore—the ability
of implementation by 20%-30%. IT
communication and a thorough to provide routine application
organizationsrequirements
are realizing thatdefinition.
global sourcing
The
maintenance and off-hours quality
can not onlycomplexity
provide many of the resources
of communication,
testing. Applications that aligned
and capabilities thatand
travel, domestic firms provide,
governance increases with these requirements were
but can alsowhenoptimize global resources and
the third party is in a distant considered as higher candidates for
reduce project costs
location. by average 30%.
using offshore. Applications that
Global sourcing has become a solution to required closer alignment with
While many companies still consider
augment various enterprise capabilities business objectives were consider
global sourcing for cost savings,
including front-office, back-office, supply less likely to benefit from offshore.
they are discovering unexpected
chains, customer relationships, and The analysis guided decisions about
benefits such as innovation,
enterprise operations. Thispartnerships,
wide range of the scope of work and the skill sets
transformation, and
expertise is being adopted by IT organizations that vendors would need to provide.
that had been confined to technical silos even
11
 when the business operated around them.
Leading firms now employ thousands
of business process experts who can
extend application expertise to supply
chains, customer relationship solutions,
and business intelligence.
Business units are increasingly turning to
global sourcing for business process
management. As businesses define process
models, they find discrete components that
can be delivered more cost-effectively
offshore. Since business process outsourcing
means many things to different companies,
examples range from customer support
centers to financial processing and lost
luggage tracking centers. Each of these
examples has both direct and indirect
implications on internal operations, alignment
with partners, and customer support. This
model of integrated, end-to-end solutions is
increasingly being architected and delivered
by offshore resources.
Segmentation of application capa-
bilities creates significant new
opportunities for IT organizations.
Companies can use global sourcing to
augment internal project teams, selectively
leveraging global teams. For example, project
managers can use offshore teams to test
development work for the core team so that
the results are ready when the team arrives
the following morning. Similarly, project
managers can outsource specialized skills
during a project. Companies can also send
specific monitoring or maintenance functions,
such as monitoring an application, offshore.
In such cases, the offshore team notifies
the onsite team of problems, just as trouble
tickets are escalated.
Global sourcing offers varied and dynamic
solutions for applications. Capabilities include
12
support to legacy solutions, packaged
applications, process reengineering,
alignment with business objectives, and
improved quality. IT organizations should
expect that increased vendor governance will
be required to oversee continuous
investment, monitor results, and ensure
alignment with business objectives.
Business units
are increasingly
turning to global
sourcing for
business process
management.
Assessment Checklist
Does the enterprise have a global
sourcing strategy?
Does the company have a complete
inventory of current and pending
application projects?
Do project managers have guidelines
for moving application services offshore?
Does the company have the ability
to segregate applications or processes
in an effective manner?
Are open communications integral to
the corporate information sharing activities?
Common Mistakes
Using global sourcing as an “all or nothing”
solution for individual projects rather than
realizing that most projects have pieces or
components that can leverage offshore
resources.
Avoiding packaged application
implementations or embracing emerging
solutions because of traditional models.
Assuming that service providers from
offshore locations do not understand local
business problems rather than realizing that
the world operates in a global market with
widespread skills.
Expecting service providers to instantly and
automatically resolve longstanding
operational problems such as tension
between the IT organization and business
units.
Rigidly separating technical and business
solutions when leading companies are
integrating capabilities and automating critical
functions.
13

Executive Summary
Global sourcing clients have been
moving selected business process
services offshore for some time.
However, these are often
transactional in nature — discrete
operations that follow specific
instructions. As clients gain
experience with successful IT and
business process outsourcing
(BPO) projects, their confidence is
growing. Companies are moving out
more critical business operations,
such as HR and finance. While only
40% -50% of these functions can
be performed offshore, the
projects are defined, managed, and
Planning
governed through global delivery
teams.
Companies prepare for global
sourcing of business operations by
documenting existing process
methodologies, dividing process
responsibilities into knowledge and
process roles, and considering
global sourcing capabilities for
select functions. Specific adoption
and implementation strategies
must be based on operational and
financial evaluations that are
complicated, not simply becoming
aware of global BPO resources.
Clients approach BPO differently from other
global sourcing engagements. Most global
sourcing remains focused on information
technology (IT), while BPO is usually driven
by the business units. Often, business teams
piloting initial BPO projects leverage the IT
organization’s outsourcing experience and
program management skills to increase their
chance of success. Business teams must
also invest in the added structure of defining
and documenting both process and
organization flow. This is a precursor to
determining the pieces of business process
that can leverage global resources and those
that place inordinate risk on the company.
Executives must also retrain internal teams
to operate with greater repeatability and
consistency so that the advantages of global
sourcing are not undermined by the
inefficiencies of rework.
Despite significant growth in recent years,
global sourcing of BPO is only a fraction of
the IT work performed offshore. Business
executives can shorten the learning
curve for global sourcing by leveraging
experience residing in the IT
organization. While the IT services may
differ completely from the required BPO
services, the process of defining the scope
of work, selecting potential providers,
evaluating capabilities, and even touring
offshore locations are very similar.
Moreover, many providers deliver both IT
and BPO, allowing the company’s existing
provider to deliver business services and
reduce the need for procurement and
evaluation.
The first step in BPO is to define the business
process and the services to be moved
offshore. Many companies do not have
documented processes, and use informal
methods that change and evolve with
Global-Sourcing-in-Action
A major airline moved its travel
support function offshore.
Searches for lost luggage, inquires
about frequent-flier mileage, and
similar functions were handled by
support teams in India. Each of
these functions needed to be
available on a 24/7 basis with no
holidays—the same dates that the
airline flies. The airline’s research
found it was less expensive to train
and manage a service provider
team in India because most of the
cost depended on labor working
around the clock. The airline
considered placing teams in several
locations around the globe with a
“follow the sun” model, but found
that the cost and quality concerns
of multiple locations outweighed
the benefit of avoiding graveyard
shifts for employees.
The types of processes
going offshore are also
changing from discrete
components to
enterprise solutions.
changing business requirements. Effective
global sourcing requires the process to
be crisply defined so that handoffs and
exchanges between internal and
15
 provider teams operate with consistent
expectations and deliverables.
Neglecting this process flow will undermine
the benefits of global sourcing by forcing
rework and interfering with communications.
While internal organizations can quickly adapt
and “go with the flow,” service provider
relationships that cross cultural and
international boundaries require better
structure to operate efficiently.
Structured processes are an important reason
for global sourcing providers to operate
effectively with junior staff who can learn
and master pieces of a process and perform
consistently and precisely, even if they do
not understand the larger business operation.
Current internal employees are often just
the opposite: senior people with broad-based
experience. Moving such people into a
structured model often makes them feel
constrained. It is usually best to make such
people the end-to-end process managers
rather than putting them into silos within
the overall process model.
The types of processes going offshore are
also changing from discrete components to
enterprise solutions. For example,
companies are shifting from using
global delivery for level 1 of a customer
support center to handling enterprise-
wide human resources. While only 40%-
50% of an HRO function can be performed
offshore, global sourcing companies can
undertake the entire solution, leverage global
resources when appropriate, and use onsite
or near-site people and resources as needed.
In this manner, companies are changing the
way they think about global sourcing. Global
resources are increasingly one piece of an
overall solution rather than a remote, low-
cost labor facility for discrete processes.
16
Assessment Checklist
Does the business have
documentation about the business
processes that are being considered
for global sourcing?
Has the company formally
articulated the primary objective
driving it towards global sourcing?
Is the company experienced with
international business and
operations?
Common Mistakes
Expecting that service providers will
automatically reengineer business
Executive Summary
processes and introduce industry
best practices. Globally sourced infrastructure streamlining data center
Abdicating sourcing responsibility to services are gaining rapid attention operations, automating functions
the service provider rather than among IT organizations. While the whenever possible, creating
including it in the overall team capabilities have been expanding for accurate asset inventories,
several years, widespread market installing modern management
objectives and goals.
acceptance is just beginning. CIOs tools, and creating data centers
Constraining the provider into a niche are evaluating the costs of data with approximate “dim light”
process rather than listening to center and device management and facilities.
thoughts and ideas that can impact realizing that staffing is the biggest Savings from relocating
overall business operations. remaining cost. infrastructure management
Assuming that a company Global sourcing of infrastructure typically range from 10%-45%
headquartered offshore lacks the is achieved by dividing current depending on the client’s
resources or capabilities to functions. Physical assets remain operations, standardization,
understand American business at the location of origin, but the centralization, and related
management tools, monitoring efficiencies. It is important to
models.
functions, and even logical database note that many Fortune 100
Duplicating work and expertise for administration are performed companies are using captive units
global sourcing within the business offshore. to consolidate and centralize
units though it already exists within IT organizations prepare for global infrastructure management
the IT organization. infrastructure sourcing by instead of global sourcing centers.
 Infrastructure management is moving
offshore. Physical equipments (e.g., servers,
mainframes) and data are not relocated
overseas; rather, global sourcing affects
technical operations staff functions
(infrastructure labor). Functions include
system monitoring, job scheduling, problem
management, architecture, and database
administration. Depending on the
function, up to 60% of the operational
staff can be placed in offshore
locations. Effective global infrastructure
management depends on processes and
communications, usually aligned with ITIL
standards. As with any service delivered
globally, best practices in this model differ
from those of internally managed operations.
Global sourcing is enabled largely by
automation. Software tools have made
most data centers “dim light” environments
where manual intervention is required only
periodically. Servers, storage, networks, and
even physical facilities can be monitored and
usually managed remotely. The ability to
relocate operational functions offshore has
been enabled by a significant increase in
network bandwidth and reliability of global
networks through both the Atlantic and
Software tools
Pacific routes. Global sourcing separates
duties into discrete functions which often
have made most
align along tool functionality.
Global providers originally monitored assets
data centers “dim
from 24x7 command centers located
offshore. While early operational models
light” environments
usually worked from a single site in India,
current models include facilities in multiple
where manual
cities and often from different countries that
share common tools and “follow the sun”
intervention is
operationally. Time zone differences are also
leveraged to provide better off-hours
required only
coverage (e.g., middle of the night support
for job scheduling and monitoring). Providers
periodically.
18
Global-Sourcing-in-Action
A major financial institution created
a mandate to drive a high
percentage of costs from its data
center operations. It evaluated
various options including relocation,
outsourcing, and consolidation.
Since labor was the highest cost
component, the only way to achieve
the desired savings was to
maintain ownership of the data
centers within the company and
outsource the labor or
management and administration
offshore. It created “lights out”
data centers and moved the
remaining operations to a provider
in India. While the company
achieved the desired costs savings
from data center operations, it
found that costs increased in other
organizations, especially in security.
also have operation centers located within
the United States that can become fully
operational within a few hours, if an
emergency arises.
While assets are usually not moved offshore,
some companies are relocating data centers
to lower-cost locations. In some cases,
assets are moved to less-populated areas of
the United States, where the cost of real
estate can be 20%-30% less than in major
cities and where wage levels are also often
lower. The core skills required to operate
data centers are commonly available in nearly
all communities across the United States. In
other cases, servers are consolidated into
managed centers, usually operated by
outsourcing providers. Centralized facilities
often encourage standardization of tools and
configurations to reduce operating costs.
Shared data centers also exist in various
forms, ranging from rented raised floors in
co-location facilities to completely
outsourced data centers, including assets.
Cost savings from global sourcing range
from 10%-40% during the first year,
mostly from labor arbitrage. Highly
standardized, efficiently run clients realize
less savings that those migrating from a
relatively inefficient internal operation.
Depending on the data center configuration,
clients may have migration or investment
costs in the first year that offset projected
savings.
While offshore infrastructure operations may
now be a new concept for many companies,
they will become a standard operating model
over the next few years. In addition to
outsourcing services, Fortune 100
companies are consolidating “command-
control centers” around the globe, with
facilities in Malaysia, Thailand, and Eastern
Assessment Checklist
Does the company operate with a
remote management structure even
while sharing the building and being
near the physical data center?
Are various command-control
facilities using common tools and are
they able to monitor, track, and close
trouble tickets using an integrated
system?
Does the company require 7x24
support that was previously
unaffordable?
Is the IT organization increasingly
leveraging automation as a solution
to replace growth of the operations
staff?
Common Mistakes
Assuming that systems are too
complex for automation or remote
management and insisting on a high-
touch approach to data center
operations.
Creating captive units to manage
remote operations, but developing a
center that is too small to provide
sufficient economies of scale.
Resisting division of responsibilities
into process models that allow some
functions to be performed offsite or
offshore.
Insisting on service levels that are
too costly and/or levels of data
redundancy that exceed the business
requirements.
19
 Europe. IT organizations can prepare for
consolidation by standardizing tools
and streamlining operations, including
managing different centers with
common toolsets.
20
Adopting process frameworks such as ITIL
can provide increased structure that makes
future consolidation or relocation less
traumatic for the organization.