PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND...

38
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Transcript of PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND...

Page 1: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

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etti

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It R

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t th

e Fir

st T

ime!

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Page 2: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

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eta

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a@se

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Age

nd

a

•In

tro

du

ctio

n•

Off

sho

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uts

ou

rcin

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ey S

ucc

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Fac

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Cas

e H

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Page 3: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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An

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, Se

eta

Res

ou

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, p

a@se

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com

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30

13

Seet

a R

eso

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es“S

wif

t E

xec

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on

” F

ocu

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Co

nsu

ltin

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irm

WH

O:

Sen

ior

Ex

ecu

tive

s at

Oil

& G

as,

En

gin

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Man

ufa

ctu

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Tec

hn

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firm

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RG

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Ex

per

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ex

per

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to

sp

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con

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of

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rnal

cli

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bu

sin

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resu

lts

-w

ith

in m

on

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no

t y

ears

SUP

PO

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BY

: P

rove

n p

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an

d s

tro

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kn

ow

led

ge o

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ols

/tec

hn

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d d

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plo

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du

rin

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of

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SULT

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Ex

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ucc

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wit

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apid

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dge

to

em

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yee

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and

em

bed

ded

bu

y-i

n b

y e

mp

loyee

s!

Page 4: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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An

and

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eta

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, p

a@se

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Pra

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p A

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Pre

sid

ent,

Co

-fo

un

der

, P

oin

tCro

ss•

VP

Mar

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dm

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ph

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ort

h A

mer

ican

Op

erat

ion

s M

anag

er,

Pro

du

ctio

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uto

mat

ion

-B

aker

Hu

ghes

•F

irst

mar

ket

ing

man

ager

fo

r LW

D/M

WD

at

Sper

ry-S

un

Dri

llin

g Se

rvic

es•

MB

A,

Un

iver

sity

of

Ho

ust

on

; B

S, M

etal

lurg

ical

En

gin

eeri

ng,

In

dia

n I

nst

itu

te o

f T

ech

no

logy

(II

T),

Bo

mb

ay,

Ind

ia

Par

tial

Cli

ent

List

•O

IL &

G

AS

: B

aker

H

ugh

es,

Bar

oid

C

orp

ora

tio

n,

Dan

iel

Ind

ust

ries

,D

ress

er

Ind

ust

ries

, D

ress

er O

il T

oo

ls,

Inte

grat

ed E

xp

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(IE

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),

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dm

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ph

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NL

Ind

ust

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S P

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S-T

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Pra

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n, O

bje

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(U

S V

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INE

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Su

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Page 5: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

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and

, Se

eta

Res

ou

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, p

a@se

eta.

com

; +

1 2

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65 9

30

15

Ho

w O

ffsh

ore

Wo

rk A

ffec

ts Y

ou

r In

du

stry

*

*And

rew

B. B

erna

rd, J

. Bra

dfor

d Je

nsen

, and

Pet

er K

. Sch

ott

Har

vard

Bus

ines

s R

evie

w, N

ovem

ber 2

004

Page 6: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

Off

sho

re O

uts

ou

rcin

g:

Key

Su

cces

s F

acto

rs

Page 7: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

17

Off

sho

re O

uts

ou

rcin

g: K

ey S

ucc

ess

Fac

tors

1.

Fo

cus

on

dri

vers

fo

r o

uts

ou

rcin

g, d

eliv

erin

g b

alan

ced

sh

areh

old

er v

alu

e an

d l

on

g-te

rm v

alu

e2.

Use

an

ex

ecu

tio

n-f

ocu

sed

pro

cess

fra

mew

ork

th

at:

1.

Eva

luat

es O

pp

ort

un

ity

2.

Eva

luat

es A

lter

nat

ives

an

d s

elec

ts o

ne

for

op

tim

al r

esu

lts

3.

Fo

cuse

s o

n d

etai

led

des

ign

/pla

n f

or

tran

siti

on

to

ste

ady

sta

te

op

erat

ion

s4

.E

xec

ute

s th

e tr

ansi

tio

n5

.A

ssu

res

smo

oth

, ste

ady-s

tate

op

erat

ion

s

3.

Co

nd

uct

po

rtfo

lio

an

aly

sis

to d

eter

min

e w

hat

to

ou

tso

urc

e4.

Ch

oo

se a

n a

pp

rop

riat

e o

uts

ou

rcin

g b

usi

nes

s m

od

el5.

Imp

lem

ent

an i

tera

tive

, ex

ecu

tio

n-d

rive

n p

artn

er &

lo

cati

on

se

lect

ion

pro

cess

6.

Dev

elo

p a

nd

ex

ecu

te a

fo

cuse

d t

ran

siti

on

pla

n7.

Dev

elo

p a

nd

ex

ecu

te a

fo

cuse

d s

tead

y-s

tate

op

erat

ion

s p

lan

8.

Ret

ain

an

in

dep

end

ent

advi

sor

Page 8: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

Key

Su

cces

s F

acto

rs

Fo

cus

on

dri

vers

fo

r o

uts

ou

rcin

g,

del

iver

ing

bal

ance

d s

har

eho

lder

val

ue

and

lo

ng-

term

val

ue

Page 9: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

19

Mar

ket

Dri

vers

fo

r O

ffsh

ore

Ou

tso

urc

ing

1. R

esou

rce/

Cap

acity

N

eed

Driv

en3.

Cos

t Red

uctio

nD

riven

2. B

usin

ess

Mod

elC

hang

e D

riven

Page 10: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

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65 9

30

110

4.

Ou

tso

urc

ing

dri

ven

by

nee

d f

or

exp

erti

se

Dat

a A

cquis

ition

Dat

a Pro

cess

ing

Inte

rpre

tation

Dec

isio

n M

akin

g Act

ion

1930

’s

1970

’s

1990

’s

Bar

rier

bet

wee

n O

il Com

pan

y D

om

ain a

nd S

ervi

ce C

om

pan

y D

om

ain

Exa

mple

: Se

ism

ic Indust

ry

Page 11: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

Key

Su

cces

s F

acto

rs

Use

an

ove

rarc

hin

g p

roce

ss f

ram

ewo

rk,

del

iver

ing

bal

ance

d s

har

eho

lder

val

ue,

an

d l

on

g-te

rm v

alu

e

Page 12: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

112

Out

sour

cing

Com

petit

ive

Val

ue

Cus

tom

erV

alue

Res

ourc

eV

alue

Nee

d a

F

ram

ewo

rk

for

Succ

essf

ul

Ou

tso

urc

ing

Eco

nom

icV

alue

Com

mun

icat

ions

Cap

abili

ties

Cre

dibi

lity

Com

mer

cial

Te

rms

Sta

bilit

y

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labi

lity

Peo

ple/

Pro

cess

/To

ols/

Tech

nolo

gy

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patib

ility

Tech

nica

l

Com

pany

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ply

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in

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vice

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uppo

rt

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ncia

ls

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vice

Del

iver

y

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llect

ual P

rope

rty

Met

rics/

Mea

sure

s

Sen

ior

Cha

mpi

on

Suc

cess

Met

rics

Wha

tTo

Out

sour

ce?

Crit

ical

ity

Ris

k

Cos

t

Sta

rt Lo

w

Wor

k P

ortfo

lioA

naly

sis

Sta

rt w

ithFa

ir S

ized

Pro

ject

With

E

xplic

it S

peci

ficat

ions

;Tr

ansi

tion

toTa

cit S

peci

ficat

ions

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toO

utso

urce

?

Res

ourc

eC

apab

ilitie

s

Tech

nica

l

Bus

ines

sA

naly

sis

Ser

vice

s/S

uppo

rtC

ompa

nyM

anag

erTe

amP

rinci

pals

Ref

eren

ces

How

toM

anag

e?D

isas

ter

Rec

over

y

Sec

urity

Qua

lity

Pro

ject

Mgm

t.

Ant

icip

ate

Miti

gate

Ris

ks

Focu

s on

Bus

ines

s G

oals

/Del

iver

able

s

Lega

l

Liab

ilitie

s

Inte

llect

ual P

rope

rty

Lang

uage

Tim

e Zo

nes

Cul

tura

l D

iffer

ence

s

Exc

hang

e R

ates

Gov

ernm

enta

l Reg

ulat

ions

BO

T

Long

Ter

m G

ame

Life

cycl

eC

osts

Pic

kP

artn

ers

RFI

RFP

RFQ

Pro

cess

es

Ow

nS

ubsi

diar

y

Sub

Con

tract

Hyb

rid/J

V

Com

mun

icat

ions

Kno

wle

dge

Tran

sfer

/C

aptu

re

Gov

erna

nce

Bui

ldV

ersu

sB

uy

Con

firm

Val

ue

Tran

sitio

n P

lan

Page 13: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

113

Dri

ven

by

Bal

ance

d S

har

eho

lder

Val

ue

Cust

om

erV

alue

Eco

nom

icV

alue

Com

pet

itiv

eV

alue

Org

aniz

atio

nal

Val

ue

Page 14: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

114

Lon

g-T

erm

Val

ue

of

Ou

tso

urc

ing

TR

IPLE

EC

ON

OM

IES

OF S

CA

LE,

SCO

PE

, A

ND

KN

OW

LED

GE

Eco

no

mie

s o

f Sc

ale

are

ob

tain

ed

bec

ause

ava

ilab

le k

no

wle

dge

is

shar

ed o

ver

a n

um

ber

of

use

s as

ti

me

pas

ses

by

, th

ereb

y r

edu

cin

g av

erag

e co

sts

per

use

Eco

no

mie

s o

f Sc

op

e ar

e re

aliz

ed

bec

ause

ex

pli

cit

kn

ow

led

ge c

an b

e re

use

d i

n a

ctiv

itie

s an

d p

roce

sses

ac

ross

dif

fere

nt

use

s o

r u

sers

Eco

no

mie

s o

f K

no

wle

dge

occ

urs

b

ecau

se o

f s h

arin

g o

f ex

pli

cit

kn

ow

led

ge t

hat

lea

ds

to

kn

ow

led

ge c

om

bin

atio

n,

no

t m

ere

rep

lica

tio

n

•M

ult

iply

Pro

du

ctiv

ity

•Im

pro

ve C

ust

om

er

Sati

sfac

tio

n

•Sp

eed

Up

In

no

vati

on

–“C

om

pan

ies

that

co

llab

ora

te w

ith

o

uts

ider

s o

n t

hei

r R

&D

rea

p a

hig

her

p

erce

nta

ge o

f th

eir

tota

l sa

les

fro

m n

ew

pro

du

cts

than

co

mp

anie

s th

at

do

n’t

co

llab

ora

te”*

* D

arr

ell

Rig

by a

nd

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ris

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ok

, “O

pen

Ma

rket

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no

vati

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”, H

arv

ard

B

usi

nes

s R

evie

w, O

cto

ber

200

2

Page 15: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

Key

Su

cces

s F

acto

rs

Co

nd

uct

po

rtfo

lio

an

aly

sis

to d

eter

min

e w

hat

to

o

uts

ou

rce

Page 16: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

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com

; +

1 2

81 2

65 9

30

116

Out

sour

cing

Com

petit

ive

Val

ue

Cus

tom

erV

alue

Res

ourc

eV

alue

Wh

at t

o

Ou

tso

urc

e?

Eco

nom

icV

alue

Com

mun

icat

ions

Cap

abili

ties

Cre

dibi

lity

Com

mer

cial

Te

rms

Sta

bilit

y

Sca

labi

lity

Peo

ple/

Pro

cess

/To

ols/

Tech

nolo

gy

Com

patib

ility

Tech

nica

l

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pany

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ply

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in

Ser

vice

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uppo

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Ser

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Del

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Inte

llect

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rope

rty

Met

rics/

Mea

sure

s

Sen

ior

Cha

mpi

on

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cess

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rics

Wha

tTo

Out

sour

ce?

Crit

ical

ity

Ris

k

Cos

t

Sta

rt Lo

w

Wor

k P

ortfo

lioA

naly

sis

Sta

rt w

ithFa

ir S

ized

Pro

ject

With

E

xplic

it S

peci

ficat

ions

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ansi

tion

toTa

cit S

peci

ficat

ions

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toO

utso

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?

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ourc

eC

apab

ilitie

s

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nica

l

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sA

naly

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Ref

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How

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ter

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over

y

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urity

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lity

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ject

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icip

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gate

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ks

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ines

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iver

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s

Lega

l

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ilitie

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Inte

llect

ual P

rope

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Lang

uage

Tim

e Zo

nes

Cul

tura

l D

iffer

ence

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Exc

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ates

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ulat

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ame

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uy

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firm

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ue

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sitio

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lan

Page 17: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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and

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eta

Res

ou

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a@se

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30

117

Wh

at d

o y

ou

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tso

urc

e?

Har

vard

Bus

ines

s Rev

iew

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brua

ry 2

005

Com

mon A

cross

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duct

Portfo

lio&

Com

pan

ies

Exa

mple

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tform

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duct

s

Page 18: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

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a@se

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30

118

Wh

at t

o O

uts

ou

rce?

Har

vard

Bus

ines

s Rev

iew

–Fe

brua

ry 2

005

Page 19: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

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, p

a@se

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119

Wh

at t

o O

uts

ou

rce

in t

he

Bac

k O

ffic

e?

Cust

om

er-fac

ing

resp

onsi

ve, cu

stom

pro

cedure

s

Cust

om

er-fac

ing

dis

cret

e, d

efin

ed p

roce

sses

Inte

rnal

res

ponsi

ve, cu

stom

pro

cedure

s

Inte

rnal

wel

l-def

ined

pro

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es

Core

Act

iviti

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Non-c

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Act

iviti

es

Anal

ytic

al

Tas

ks

Adm

inis

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ks

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d

Page 20: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

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An

and

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eta

Res

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, p

a@se

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com

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30

120

Wal

k,

Do

n’t

Ru

n! U

se a

Ph

ased

Ap

pro

ach

PH

ASE

ON

E:

EX

PLI

CIT

LY D

EF

INE

D T

ASK

S

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roje

ct M

anag

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t an

d P

rod

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agem

ent

con

tro

lled

by

cli

ent

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rust

in

th

e re

lati

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ship

is

low

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end

or

do

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hav

e as

sets

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clie

nt

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stim

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sav

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are

ab

ou

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to

30

%

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ASE

TW

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AC

ITLY

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SKS

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rod

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man

agem

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n c

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mai

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and

Ven

do

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are

Pro

ject

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agem

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and

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end

or

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ts d

edic

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to

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rust

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d c

om

mu

nic

atio

ns

beg

in t

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kn

ow

led

ge s

har

ing

beg

ins

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stim

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to

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ASE

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E: G

OA

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EN

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are

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on

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for

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rod

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om

ain

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om

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grat

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r p

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e tw

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igh

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stim

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sav

ings

are

ab

ou

t 4

5%

to

65%

.

Page 21: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

Key

Su

cces

s F

acto

rs

Ch

oo

se a

n a

pp

rop

riat

e o

uts

ou

rcin

g b

usi

nes

s m

od

el

Page 22: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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An

and

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eta

Res

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a@se

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com

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1 2

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30

122

Out

sour

cing

Com

petit

ive

Val

ue

Cus

tom

erV

alue

Res

ourc

eV

alue

An

tici

pat

e th

eB

usi

nes

s M

od

el

Eco

nom

icV

alue

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mun

icat

ions

Cap

abili

ties

Cre

dibi

lity

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mer

cial

Te

rms

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bilit

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labi

lity

Peo

ple/

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cess

/To

ols/

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nolo

gy

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patib

ility

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nica

l

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pany

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ply

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in

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llect

ual P

rope

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Met

rics/

Mea

sure

s

Sen

ior

Cha

mpi

on

Suc

cess

Met

rics

Wha

tTo

Out

sour

ce?

Crit

ical

ity

Ris

k

Cos

t

Sta

rt Lo

w

Wor

k P

ortfo

lioA

naly

sis

Sta

rt w

ithFa

ir S

ized

Pro

ject

With

E

xplic

it S

peci

ficat

ions

;Tr

ansi

tion

toTa

cit S

peci

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Who

toO

utso

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ourc

eC

apab

ilitie

s

Tech

nica

l

Bus

ines

sA

naly

sis

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s/S

uppo

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ompa

nyM

anag

erTe

amP

rinci

pals

Ref

eren

ces

How

toM

anag

e?D

isas

ter

Rec

over

y

Sec

urity

Qua

lity

Pro

ject

Mgm

t.

Ant

icip

ate

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gate

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ks

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s on

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ines

s G

oals

/Del

iver

able

s

Lega

l

Liab

ilitie

s

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llect

ual P

rope

rty

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uage

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e Zo

nes

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tura

l D

iffer

ence

s

Exc

hang

e R

ates

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ulat

ions

BO

T

Long

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m G

ame

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cycl

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osts

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cess

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nS

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tract

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rid/J

V

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mun

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wle

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sfer

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re

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erna

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ldV

ersu

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uy

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firm

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ue

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sitio

n P

lan

Page 23: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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An

and

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Res

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a@se

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30

123

Co

nsi

der

Alt

ern

ate

Mo

del

s at

th

e O

uts

et

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tract

orS

ubsi

diar

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Operate

Transfer

Page 24: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

Key

Su

cces

s F

acto

rs

Imp

lem

ent

an i

tera

tive

, ex

ecu

tio

n-d

rive

n p

artn

er

& l

oca

tio

n s

elec

tio

n p

roce

ss

Page 25: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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An

and

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Res

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a@se

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30

125

Ex

ecu

tio

n D

rive

nR

FI/

RF

P/R

FQ

Sele

ctio

n P

roce

ss! C

omm

unic

atio

ns

Cap

abili

ties

Cre

dibi

lity

Com

mer

cial

Te

rms

Sta

bilit

y

Sca

labi

lity

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ple/

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cess

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ols/

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nolo

gy

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patib

ility

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nica

l

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pany

/Sup

ply

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in

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uppo

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ls

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iver

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ual P

rope

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rics/

Mea

sure

s

Sen

ior

Cha

mpi

on

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cess

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rics

Who

toO

utso

urce

?

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ourc

eC

apab

ilitie

s

Tech

nica

l

Bus

ines

sA

naly

sis

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vice

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uppo

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nyM

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erTe

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rinci

pals

Ref

eren

ces

How

toM

anag

e?D

isas

ter

Rec

over

y

Sec

urity

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lity

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ject

Mgm

t.

Ant

icip

ate

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gate

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ks

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s on

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ines

s G

oals

/Del

iver

able

s

Lega

l

Liab

ilitie

s

Inte

llect

ual P

rope

rty

Lang

uage

Tim

e Zo

nes

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tura

l D

iffer

ence

s

Exc

hang

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ates

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ernm

enta

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ulat

ions

BO

T

Long

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ame

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cycl

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osts

Pic

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cess

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mun

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ions

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wle

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lan

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sitio

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te

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petit

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ourc

eV

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nom

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Page 26: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

Key

Su

cces

s F

acto

rs

Dev

elo

p a

nd

ex

ecu

te a

fo

cuse

d t

ran

siti

on

pla

n

Dev

elo

p a

nd

ex

ecu

te a

fo

cuse

d s

tead

y-s

tate

op

erat

ion

s p

lan

Page 27: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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30

127

Det

aile

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ran

siti

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(E

xec

uti

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) P

lan

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int

Bu

yer

an

d V

end

or

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lan

an

d S

et U

p–

Kn

ow

led

ge T

ran

siti

on

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igra

te t

o P

rod

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om

mu

nic

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rfac

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yer

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chan

ges

in:

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ove

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usi

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on

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cess

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mp

eten

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nee

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tru

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ork

forc

e

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ar V

isio

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ead

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tate

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nd

itio

n

Page 28: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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30

128

Incr

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g-T

erm

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iver

ed V

alu

e*

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Ho

rizo

nta

l “g

ove

rnan

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pro

file

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f th

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etw

ork

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Ded

icat

ed A

sset

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ded

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r re

lati

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-sp

ecif

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d

reso

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ow

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reat

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atio

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th

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term

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ates

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exte

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yer

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Page 29: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

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30

129

Ret

ain

an

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dep

end

ent

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viso

r

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rive

s th

e cl

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t-fi

rm t

o t

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nsw

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rath

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th

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a co

mb

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of:

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sin

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and

tec

hn

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per

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ce (

and

th

e ac

com

pan

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nd

per

spec

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per

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per

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ick

stu

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’s p

rod

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ervi

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ngi

nee

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ack

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rogr

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anag

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mm

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oti

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ult

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neg

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kil

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Inte

grit

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Page 30: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

A C

ASE

HIS

TO

RY

SUC

CE

SSF

UL

AP

PLI

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TIO

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Page 31: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

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131

Th

e C

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alle

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US

bas

ed,

pu

bli

cly t

rad

ed t

elec

om

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ftw

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firm

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nd

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mp

etit

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mar

ket

pre

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red

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so

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mai

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su

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of

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eso

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e o

pp

ort

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ity

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inim

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the

risk

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ly e

igh

t-fi

gure

o

ffsh

ori

ng

init

iati

ve.

–Sw

ift

imp

lem

enta

tio

n -

del

iver

ben

efit

s w

ith

in s

ix m

on

ths

of

init

ial

dis

cuss

ion

s.

•Se

eta

bro

ugh

t a

un

iqu

eco

mb

inat

ion

of:

1

.H

igh

-lev

el

bu

sin

ess

and

te

chn

ical

ex

per

ien

ce

(an

d

the

acco

mp

any

ing

insi

ghts

an

d p

ersp

ecti

ves)

th

at p

rom

ote

d s

wif

t,

in-d

epth

un

der

stan

din

g o

f w

hat

th

e cl

ien

t w

ante

d t

o a

cco

mp

lish

2.

Inti

mat

e u

nd

erst

and

ing

of

the

po

ten

tial

p

itfa

lls

of

do

ing

bu

sin

ess

in I

nd

ia3

.A

bil

ity

to

im

ple

men

t p

ragm

atic

pro

gram

s to

avo

id t

hes

e p

itfa

lls

and

fu

lly

tap

in

to t

he

cap

abil

itie

s o

f In

dia

n o

ffsh

ore

ven

do

rs

Page 32: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

132

Tim

elin

e

Out

sour

cing

Com

petit

ive

Valu

e

Cus

tom

erV

alue

Res

ourc

eVa

lue

A F

ram

ewor

k fo

r Su

cces

sful

O

utso

urc

ing

Eco

nom

icV

alue

Com

mun

icat

ions

Cap

abili

ties

Cre

dibi

lity

Com

mer

cial

Te

rms

Sta

bilit

y

Sca

labi

lity

Peop

le/

Proc

ess/

Tool

s/Te

chno

logy

Com

patib

ility

Tech

nica

l

Com

pany

/Sup

ply

Cha

in

Ser

vice

sSu

ppor

t

Fina

ncia

ls

Ser

vice

Del

iver

y

Inte

llect

ual P

rope

rty

Met

rics/

Mea

sure

s

Seni

orC

ham

pion

Suc

cess

Met

rics

Wha

tTo

Out

sour

ce?

Crit

ical

ity

Ris

k

Cos

t

Sta

rt Lo

w

Wor

k P

ortfo

lioA

naly

sis

Sta

rt w

ithFa

ir S

ized

Pro

ject

With

E

xplic

it S

peci

ficat

ions

;Tr

ansi

tion

toTa

cit S

peci

ficat

ions

Who

toO

utso

urce

?

Res

ourc

eC

apab

ilitie

s

Tech

nica

l

Busi

ness

Ana

lysi

s

Serv

ices

/S

uppo

rt

Com

pany

Man

ager

Team

Prin

cipa

ls

Ref

eren

ces

How

toM

anag

e?D

isas

ter

Rec

over

y

Sec

urity

Qua

lity

Pro

ject

Mgm

t.

Ant

icip

ate

Miti

gate

Ris

ks

Focu

s on

Bus

ines

s G

oals

/Del

iver

able

s

Lega

l

Liab

ilitie

s

Inte

llect

ual P

rope

rty

Lang

uage

Tim

e Zo

nes

Cul

tura

l D

iffer

ence

s

Exc

hang

e R

ates

Gov

ernm

enta

l Reg

ulat

ions

BO

T

Long

Ter

m G

ame

Life

cycl

eC

osts

Pic

kP

artn

ers

RFI

RFP

RFQ

Pro

cess

es

Ow

nS

ubsi

diar

y

Sub

Con

tract

Hyb

rid/J

V

Com

mun

icat

ions

Kno

wle

dge

Tran

sfer

/C

aptu

re

Gov

erna

nce

Bui

ldV

ersu

sB

uy

Con

firm

Val

ue

Tran

sitio

n P

lan

Tran

sitio

nP

lan

Ste

ady

Sta

te

Star

t D

ate:

Dec

ember

15,

200

4

End D

ate:

April 15

, 20

05

Page 33: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

133

Val

ue

Del

iver

ed t

o C

lien

t

1.

In f

ou

r sh

ort

mo

nth

s, t

he

clie

nt

wil

l go

liv

e an

d

savi

ngs

wil

l b

egin

to

acc

rue

to t

hem

alm

ost

im

med

iate

ly.

2.

Tra

nsi

tio

n t

o s

tead

y-s

tate

op

erat

ion

s is

an

tici

pat

ed t

o t

ake

an a

dd

itio

nal

nin

e m

on

ths,

y

ield

ing

mo

re t

han

50

% c

ost

sav

ings

, w

ith

yea

r-o

n-y

ear

cost

red

uct

ion

s.

Page 34: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

134

Wh

y S

eeta

?

1.

Dep

th o

f ex

per

ien

ce a

nd

ex

per

tise

in

dev

elo

pin

gan

d

exec

uti

ng

new

bu

sin

ess

mo

del

s to

mak

e fi

rms

mo

re

com

pet

itiv

e 2.

A p

has

ed p

roje

ct m

anag

emen

t ap

pro

ach

th

at i

ncl

ud

ed: A

. D

efin

ing

Go

als,

Op

po

rtu

nit

ies,

an

d R

isk

s; B

. Se

ekin

gA

lter

nat

ives

an

d S

elec

tio

n; C

. D

esig

n;

D.

Ex

ecu

tio

n/T

ran

siti

on

; E

. O

ngo

ing

Op

erat

ion

s3.

Ex

ecu

tio

n-f

ocu

sed

, d

isci

pli

ned

RFI,

RFP

, an

d R

FQ

p

rocu

rem

ent

pro

cess

es4.

Org

aniz

atio

nal

sk

ills

to

sec

ure

bu

y-i

n f

rom

all

st

akeh

old

ers

wit

hin

th

e b

uyer

org

aniz

atio

n f

or

spee

dy

im

ple

men

tati

on

5.

Inti

mat

e k

no

wle

dge

of

Ind

ia, In

dia

n v

end

ors

, cu

ltu

ral/

com

mu

nic

atio

ns/

man

agem

ent

issu

esw

ith

Ind

ian

w

ork

forc

e, a

nd

bli

nd

spo

ts/p

itfa

lls

in o

uts

ou

rcin

g to

In

dia

-d

uri

ng

all

ph

ases

, in

clu

din

g n

ego

tiat

ion

s w

ith

ve

nd

ors

Page 35: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

135

Ho

w S

eeta

Hel

ped

Wo

rkin

g in

co

llab

ora

tio

n

wit

h

the

Ex

ecu

tive

V

ice

Pre

sid

ent

of

En

gin

eeri

ng

and

Cu

sto

mer

Car

e, a

nd

th

ree

mem

ber

s o

f h

is s

taff

, Se

eta

par

tici

pat

ed i

n:

1.

Co

nfi

rmin

g th

at t

he

off

sho

rin

g in

itia

tive

had

so

un

d b

asis

in

del

iver

ing

Eco

no

mic

Val

ue,

Co

mp

etit

ive

Val

ue,

Cu

sto

mer

Val

ue,

an

d O

rgan

izat

ion

al

Val

ue.

2.

Dev

elo

pin

g ve

nd

or

eval

uat

ion

cri

teri

a th

at w

ere

dri

ven

by

Eco

no

mic

V

alu

e, C

om

pet

itiv

e V

alu

e, C

ust

om

er V

alu

e, R

eso

urc

e V

alu

e, a

nd

Ris

k3

.D

evel

op

ing

a R

equ

est

for

Pro

po

sal

(RF

P)

dri

ven

by

th

e fi

rm’s

ob

ject

ives

, k

ey p

erfo

rman

ce a

reas

, an

d a

nti

cip

ated

ris

ks/

pit

fall

s 4

.R

esea

rch

ing

the

un

iver

se o

f p

ote

nti

al s

up

pli

ers

wh

o c

ou

ld m

eet

thei

r n

eed

s5

.E

xec

uti

ng

No

n D

iscl

osu

re A

gree

men

ts w

ith

fif

teen

fir

ms

and

sen

din

g R

FP

s to

th

ese

firm

s6

.E

valu

atin

g ea

ch r

esp

on

se a

nd

sel

ecti

ng

six

fin

alis

ts7

.O

rgan

izin

g (t

he

logi

stic

s) a

nd

vis

itin

g th

ese

six

fir

ms

in I

nd

ia,

for

det

aile

d d

ue

dil

igen

ce o

f tr

ansi

tio

n a

nd

ex

ecu

tio

n r

elat

ed p

eop

le,

pro

cess

es a

nd

tec

hn

olo

gies

. T

he

cli

ent

team

was

vis

itin

g In

dia

fo

r th

e fi

rst

tim

e, a

nd

we

visi

ted

fiv

e ci

ties

, in

fiv

e d

ays,

an

d a

cco

mp

lish

ed o

ur

goal

s, r

etu

rnin

g to

th

e U

S, p

erfe

ctly

hea

lth

y8

.Se

eta

enga

ged

ver

y c

lose

ly w

ith

all

RF

P f

inal

ists

to

mak

e su

re t

hat

all

pu

t th

eir

bes

t fo

ot

forw

ard

to

mee

t cl

ien

t ex

pec

tati

on

s, s

o t

hat

th

ecl

ien

t-fi

rm

cou

ld m

ake

bes

t-q

ual

ity

eva

luat

ion

s an

d d

ecis

ion

s9

.In

Pro

cess

:Se

lect

ing

two

of

the

fin

alis

tsfo

rd

etai

led

dis

cuss

ion

sfo

rfi

nal

Page 36: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

136

Sum

mar

yO

ffsh

ore

Ou

tso

urc

ing:

Key

Su

cces

s F

acto

rs1.

Fo

cus

on

dri

vers

fo

r o

uts

ou

rcin

g, d

eliv

erin

g b

alan

ced

sh

areh

old

er v

alu

e an

d l

on

g-te

rm v

alu

e2.

Use

an

ex

ecu

tio

n-f

ocu

sed

pro

cess

fra

mew

ork

th

at:

1.

Eva

luat

es O

pp

ort

un

ity

2.

Eva

luat

es A

lter

nat

ives

an

d s

elec

ts o

ne

for

op

tim

al r

esu

lts

3.

Fo

cuse

s o

n d

etai

led

des

ign

/pla

n f

or

tran

siti

on

to

ste

ady

sta

te

op

erat

ion

s4

.E

xec

ute

s th

e tr

ansi

tio

n5

.A

ssu

res

smo

oth

, ste

ady-s

tate

op

erat

ion

s

3.

Co

nd

uct

po

rtfo

lio

an

aly

sis

to d

eter

min

e w

hat

to

ou

tso

urc

e4.

Ch

oo

se a

n a

pp

rop

riat

e o

uts

ou

rcin

g b

usi

nes

s m

od

el5.

Imp

lem

ent

an i

tera

tive

, ex

ecu

tio

n-d

rive

n p

artn

er &

lo

cati

on

se

lect

ion

pro

cess

6.

Dev

elo

p a

nd

ex

ecu

te a

fo

cuse

d t

ran

siti

on

pla

n7.

Dev

elo

p a

nd

ex

ecu

te a

fo

cuse

d s

tead

y-s

tate

op

erat

ion

s p

lan

8.

Ret

ain

an

in

dep

end

ent

advi

sor

Page 37: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

© P

rad

eep

An

and

, Se

eta

Res

ou

rces

, p

a@se

eta.

com

; +

1 2

81 2

65 9

30

137

“Th

ere

is n

o s

uga

r-co

atin

g th

is:

in a

fla

t w

orl

d,

ever

y i

nd

ivid

ual

is

goin

g to

hav

e to

ru

n a

lit

tle

fast

er i

f h

e o

r sh

e w

ants

to

ad

van

ce h

is o

r h

er

stan

dar

d o

f li

vin

g.”

“Wh

en I

was

gro

win

g u

p,

my

par

ents

use

d t

o

say

to

me,

‘To

m,

fin

ish

yo

ur

din

ner

--

peo

ple

in

Ch

ina

are

star

vin

g.’ B

ut

afte

r sa

ilin

g to

th

e ed

ges

of

the

flat

wo

rld

fo

r a

yea

r, I

am

no

w

tell

ing

my

ow

n d

augh

ters

, ‘G

irls

, fi

nis

h y

ou

r h

om

ewo

rk -

-p

eop

le i

n C

hin

a an

d I

nd

ia a

re

star

vin

g fo

r y

ou

r jo

bs.

’ ”

Th

om

as

L. F

ried

ma

n -

au

tho

r o

f “T

he

Wo

rld

Is

Fla

t: A

Bri

ef H

isto

ry o

f th

e T

wen

ty-F

irst

C

entu

ry”

Fin

al W

ord

Page 38: PRADEEP ANAND SEETA RESOURCES...Offshore Outsourcing: Getting It Right the First Time! PRADEEP ANAND SEETA RESOURCES ; pa@seeta.com; +1 281 265 9301

Th

ank

yo

u

PR

AD

EE

P A

NA

ND

SEE

TA

RE

SOU

RC

ES

ww

w.s

eeta

.co

m;

pa@

seet

a.co

m; +1 2

81 2

65

9301