Knowledge Management of Global Work Frank Harmsen

Faculty name Agenda Welcome to Ernst & Young! IT Knowledge in a Global Context The ‘Distance’ notion Keeping the Balance - The 6P Model

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Analysis Design Build Test Impleme- mentation Amsterdam Hyderabad New York

Faculty name Analysis Design Build Test Impleme- mentation Amsterdam Hyderabad New York

Faculty name Drivers for Offshore Outsourcing Decreasing Availability of Skilled Personnel  Shortage of skilled IT workforce in developed nations  Rising costs of Manpower in developed nations  Growth of highly-skilled IT personnel in several low cost developing countries Emergence & Evolution of Outsourcing Companies  Increased maturity of the web & state-of-the-art infrastructure being developed worldwide  Evolution of successful distributed delivery models leading to a wide range of IT work being executed from offshore locations Increasing Competitive Pressures Increasing globalization and evolution of disruptive technologies is forcing companies across industries to:  Provide superior customer service  Reduce cost of operations across board  Continued focus on rapid implementation of IT projects

Faculty name Onsite Offshore Onsite: Various locations (e.g., Netherlands)  Retention of regional business knowledge  Continuity  Local language  Single point of contact Offshore: SE Asia, China, Africa  Lower cost  Resources  Quality Nearshore Nearshore: Spain, Canada, Mexico  Easier Travel  Cultural Similarities  Time Zone  Nearshore technical skills to deal with show-stoppage situations

Faculty name Transportation costs for bits are zero

Faculty name 10 Client interaction, Interviews, Reviews, Program Leadership, & Goal-Setting Analysis and synthesisBackground research, thought leadership, & information support. Architecture, Requirements, Change Mgmt, & Implementation Requirements analysis, High level Design, & Prototype building, & Implementation support Detailed design, Code Development, Testing & Integration Client Interaction, Process Mapping, Solution Definition, Architecture, Change & Program Mgmt Prototype Building, High Level Design, & Implementation Support Custom Components, Integration Interfaces, & Reports Building First-level support, Facilities support, & Program Mgmt Near-site support centers, Service Redundancy Large Offshore Centers, Core Service Delivery (e.g. Captive units of GECIS, American Express, Citibank, British Airways) Source: Infosys Framework - Evolution of GDM = Lower Ratio of Resources = Higher Ratio of Resources On siteNearshoreOffshore Strategy and Roadmap Definition Application Development, Integration and Maintenance Systems Integration and Package Implementation IT and BPO Support Organizations determine their desired / optimal global locations for various activities

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13 Overall a 25% to 35% cost advantage is expected in offshore destinations versus costs in the US The primary source of benefit is salary, but infrastructure, training and other costs are likely to be higher offshore General Salary Levels Salary Cost at Infosys

Faculty name CultureGeographyTime ZonesGovernance & ControlLanguageStabilitySecurityLegislationKnowledge

Faculty name Distance Matters! (1) Collaboration over distance is hard… particularly… –for innovative activities –when you need to be close to your customer –when requirements are not well- specified.

Faculty name Distance Matters! (2) Negative impacts of distance: –Slows work –Leads to breakdowns –Increases chance of failure –Increases risks –Requires more oversight, control, governance, travel.

Faculty name (Fabriek, 2007)

Faculty name  Shorten the distance(s)!  Balancing the 6 P’s:

Faculty name Paradigm  Underpinning Way of Thinking, e.g.  Anglo-Saxon vs Rheinländisch  East vs West  Structured vs Evolutionary

Faculty name People  Culture  Coherence  Human, Social and Customer Capital

Faculty name Process  Delivery models  OneTeam  Networked  Front Office / Back Office  Methods and Method Engineering  One way of working…  But tailored to the situation at hand

Faculty name Planet  Sustainability, ecological footprint  Corporate responsibility  Labor environment at offshore locations

Faculty name Profit  Benefits versus costs  Investments in retained organization  Intellectual capital!

Faculty name Products  Software tools  Wiki  Proprietary tools, databases  Hardware tools  Videoconferencing

Faculty name Example of a Product: CPort

Faculty name Kennistechnologie Questions?