| A risk can be defined as a problem that could | | | | governing the offshore relationship - client |
| cause some loss or threaten the success of of | | | | management, third party contract. The |
| project. The potential risk factors may have | | | | approach focuses on the evolution of services |
| an adverse impact on the cost, schedule, or | | | | provided, ongoing communication processes, |
| technical success of the project. Thus, risk | | | | and overall project management. Governance |
| management is the process of identifying, | | | | activities pertaining to areas of off shoring |
| determine and solve the potential problems | | | | can make or break a project. |
| before they can damage the project. | | | | |
| | | | The Ongoing governance involves the |
| Offshore program and project management | | | | following: |
| involves four critical activities: | | | | |
| | | | - Project management |
| 1. Transition Management | | | | |
| | | | - Relationship building and management - |
| 2. Governance | | | | |
| | | | - Risk management - describes the processes |
| 3. Performance Management | | | | concerned with identifying, managing, and |
| | | | correction of outsourcing partnership risks. |
| 4. Quality Management | | | | |
| | | | Performance Management |
| Transition Management | | | | |
| | | | As offshore outsourcing has become an |
| The process of managing assets during a | | | | important aspect for multiple business |
| period of restructuring is defined as | | | | processes, the types and complexity of |
| transition management. The role of the | | | | contracts and sourcing alliances are bound to |
| Transition Manager is to minimize the costs | | | | explode. With organizations outsourcing |
| and risks thus ensuring that the process runs | | | | almost every aspect of their operations, |
| smoothly. | | | | multiple vendors participating in sourcing |
| | | | deals, and activities occurring 24x7, it's a |
| The real process starts when the contract is | | | | nonstop challenge to coordinate interactions, |
| signed. Smooth transition management is the | | | | manage performance, monitor contract terms, |
| next issue to manage. Transition management | | | | track financial metrics, and maintain |
| is considered to be a critical success factor | | | | alignment. |
| of offshore activities. Transition management | | | | |
| is defined as the detailed knowledge of | | | | Ongoing governance involves the following: |
| transfer and documentation of all relevant | | | | |
| tasks, technologies and workflows The | | | | - Measures outsourcing effectiveness using |
| transition period is perhaps the most | | | | appropriate metrics |
| difficult stage of an offshore endeavor, | | | | |
| taking anywhere from three months to a year | | | | - Implementing improvements and adjustments |
| to complete. | | | | |
| | | | - Evaluating feasibility of additional |
| Transition management involves the following: | | | | outsourcing |
| | | | |
| - Develop an initial transition plan | | | | Quality Management |
| (involving activities such as milestones, | | | | |
| assets and benchmarks) | | | | Quality is a huge concern with offshore |
| | | | outsourcing. Errors are more costly to fix |
| - Initiation of projects | | | | and debugging becomes essential. A strict |
| | | | quality assurance and control program forms |
| - Internal procedures and processes | | | | an integral part of every offshore delivery |
| | | | project. |
| - Manage employees | | | | |
| | | | Performance management aims at reviewing and |
| - Document lessons learned to improve vendor | | | | continuous improvement of software |
| management | | | | development and business processes, |
| | | | validation and verification of work products |
| Governanceafter managing the issue of | | | | and customized status reports. |
| transition put the skills into practice by | | | | |