A well executed transition to captive operations is pre-requisite but not sufficient to harvest all the benefits of offshoring. Key to success here is the right level of governance and effective oversight. Sub optimal governance can be expensive and sometime catastrophic. In a large offshoring program central monitoring and control, measuring performance parameters, careful coordination and risk management are basic qualifications for ensuring success.
Typical challenges captive organization face in managing their offshoring programs are…
- Operational priorities take most of the time from IT leadership, leading to no or little time left for proactive governance.
- ‘We are doing it in-house’ mindset leads to ownership ambiguities. This leads to unclear expectations from both sides, causing negative surprises and frustration.
- Lack of clarity on measurement parameters. Business Users drive captive teams based on their individual perception rather than data driven facts.
- Organization construct doesn’t promote profit mindset. Project leadership works on cost+ mindset leading to lack of incentives for productivity improvement.
- Cost escalation over a period of time erodes forecasted benefits and senior managers have no benchmarks to compare with.
Orcapod consulting team has years of experience in managing large size offshoring programs including running captives and integrating the captives into IT services organizations. Our Governance Support Services can help our Captive Clients in following different ways.
Governance Office: We can make a governance office in your Centre or can run it from our location. This office can provide governance support in areas like demand management, audits, management dash board, performance reporting and improvement management. While our team will become an integral part of your IT management; your staff would be able to focus on strategic aspects of the governance. This will not only help you reduce governance & compliance cost but will improve service quality, efficacy and quality perception.
Transition Support: Starting and stabilizing the operations during the initial stages is crucial. This is where maximum pain occurs. The obvious reasons are lack of preparation, no time for hiring the right people and peak starting workload. Our governance team can add management capacity to accompany you during the initial phase of the program and gradually move out once you stabilize the operations and build in-house capacity.
Virtual War Room: While your in-house governance team is driving the program, we can support them by building and operating a virtual war room. This will not only act as a passive repository of contract documents, historical reports but will be an active shelf space maintained by our team to provide support information. This way, while we will take care of your mundane and repetitive business tasks, your leadership can spend their time on real decision making.