Keep Offshoring Initiatives on a Short Leash, Advises Granite Solutions Groupe

When it comes to offshoring, U.S. businesses are still making the common mistake of sending too many jobs overseas. However, by taking an approach that keeps critical ìknowledge workersî stateside, companies stand a better chance at achieving the cost savings they seek. This according to Granite Solutions Groupe (Granite), a San Francisco-based financial services and IT recruiting firm that specializes in placing contract consultants in key delivery roles with domain expertise.

ìMany of our clients view offshoring as a key cost-cutting solution, but thereís no such thing as a free lunch,î explains John Henning, Granite’s San Francisco-based Director of Business Development. ìIn many cases, the money saved is chewed up by the local implementation costs and scheduling delays associated with managing and translating requirements with the overseas partner -- reducing any real savings over the long haul.î

The subtle nuances of language differences, cultural barriers and long-distance transmission of requirements to development teams are all elements that need to be carefully considered by business stakeholders prior to structuring the project, Henning notes. Instead of outsourcing development completely in any one business area, he encourages firms to aim for a ìhybridî approach by hiring local contract staff with domain experience, what he terms ìCo-Sourcing.î

ìCo-sourcing is going to be less costly and more effective in the long run,î he adds. ìBy leveraging local contract talent with the domain expertise needed to execute, firms can avoid the fixed cost of hiring a regular employee and retain management control and the high-touch interactions often needed to keep key business sponsors engaged.î

Granite advises companies to establish the role of a Business/IT Knowledge Worker -- someone with strong domain expertise that can understand the terminology and concepts of business people -- while at the same time having the project management, analytical and technology skills to work with local and off-site IT staff needed to execute projects.

Business analysis and business process mapping are key functions of the Business/IT Knowledge Worker that are next to impossible to have performed offsite or by an outside organization. The fluid nature of software development projects -- combined with rapidly changing business requirements ñ requires strong business knowledge and frequent local interaction with the business to ensure a successful outcome in todayís complex software implementations.

Granite specializes in the placement of highly skilled senior-level Project Managers, Business Analysts, IT Managers and IT Contractors at global firms throughout the financial services and IT Market. Graniteís consultants have the domain expertise and execution/delivery track record without the high markups associated with most mainstream high-end consulting firms.