I have just come back from a trip to Bangalore India having been asked to set-up for a well known consultancy an offshore software development centre.
Complete Gridlock
Bangalore was selected because there is already a significant offshore IT development presence by companies such as Accenture, Honeywell Bull, Intel, IBM. It was decided that here I would pull together resource in order to set-up a 200 to 300 man software development factory.
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So what do we mean by the term Offshoring for the Newbie Project Manager?
“It is the relocation of business processes to a lower cost location, usually overseas”.
In theory this looks an almost “too good to be true” opportunity to increase profits through reduced production costs via the exploitation of cheap foreign labour. The expectation with respect to IT software development is a promise of cost reductions in the region of 30% to 40%. The management consultants convince clients that all you needed to do in order to encapsulate this cost saving into your balance sheet, is to carry out, with their help, an IT staff change-over similar to changing out an old car engine and replacing it with a new one made in India or China. Make this happen and “he presto you’re in the money”.
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This morning I read two articles “create alliances to drive change, IT directors told” Computerweekly 13/05/06 by Will Hadfield and John Riley & “Career Opportunities” by Sally Flood 15/06/06 Computing Magazine. Both these articles had positive points to make about what should be the future role of CTO’s and IT directors.
The key point mentioned in both articles is that it is vital, if companies and government departments want the following:-
• Value for money IT services
• Improvements in IT development productivity
• Systems which match original business requirements
then the recipe for success starts at the top !
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For those newbie’s to Project Management – What is meant by the term “PMO”?
PMO is an abbreviation /stands for “Project Management Office” and is an office or department responsible for establishing, maintaining and enforcing project management processes, procedures, and standards. It provides services, support, and certification for project managers.
The set-up of PMOs has become very fashionable recently, with rapidly increasing numbers of PMOs set-up each year. This is evidenced by salaries of PMO related staff almost doubling in the last 18 months.
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My IT Management Philosophy has always been based on four key principals
which I have always considered to be independent of the current ‘flavour of the month’ in terms of IT development /project management methods:-
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