2. RightSourcing right·source (rīt′sôrs′) transitive verbrightsourced-·sourced′, rightsourcing -·sourc′·ing to transfer (information technology, operations, administrative activities, etc.) to outside contractors, esp. so as to reduce one's operating costs; to accomplish said transfer and cost reduction without the high risks and management difficulties generally associated with transferring such functions offshore; to combine high levels of subject matter expertise with lower cost onshore wage rates to produce an optimal solution. 2
5. Lessons learnedThe initial movement towards IT and BP offshore resources determined cost/benefit largely and somewhat simplistically on capacity and unit labor costs. After two decades of experience and a good number of studies, large firms now employ a far more sophisticated approach to the onshore/offshore decision. Capacity, unit labor rates and many previously missed and hidden costs along with new unexpected costs are evaluated throughout the decision making process in order to understand and properly prepare for an outsourced solution. 3
8. Welcome benefitsMore recently……. US based IT and BPO companies have moved boldly and aggressively to compete with offshore providers. Looked at narrowly, US based unit costs of labor are not quite as low as firms in Asia, but when total costs for outsourced solutions are accounted for, the pricing become quite competitive. Managerial headaches and the client discontent common in offshore solutions disappear. 4
11. Compelling reasons to onshoreNow ….. Companies looking at their own internal IT/BPO costs no longer need to choose between keeping the functions in-house and outsourcing to Asia. There are still business functions where the best choice may be to go offshore, but it’s not a given that offshore is the only shore. Depending on the particular function, company, industry and numerous other factors, onshore solutions may often provide significantly greater productivity, increased levels of quality, service and satisfaction, and reduction in cost and risk. 5
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13. Trade-off optimization varies greatly depending on many factors including: industry; function / process type; regulatory and business stability and structure; culture, language, distance, time zones; etc.
14. Business functions and processes can achieve optimal results by teaming lower cost resources with the right number of industry experts in facilities that exceed requirements in economically friendly onshore regions.
15. Optimization is synergistic; once transitioned, cost continues to decrease by implementing improvements made possible because the outcomes are greater than the sum of their parts (lower labor rates, industry expertise, facility, economically friendly location and process improvements).
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17. Offshore Costs Outsourcing business processes and software development to overseas has been around for a number of years, and some of it works well. There are cost advantages with low cost country outsourcing and this is the only advantage that low cost country outsourcing has. But some of these cost advantages may be overestimated. If you make use of a low cost country, outsourcing can save you up to 50%. It is important, however, to fully monetize, and subtract, the additional - often hidden - costs of going offshore: Increased time to deliver services or product: -10%Cultural Interferences: -5%Additional Travel Costs: -5%Bad PR and Mitigation costs: -5%Training and Process Reengineering: -5%Time Zone Constraints: -5% Risk (Fiduciary and Operation): -10% The savings firms see when they look only at per-unit labor costs drop substantially when the full costs of offshore outsourcing are added to the equation. 8
18. The EI RightSourcing SolutionRobust & Secure Facilities, Rapid Deployment, Sustainable Savings 9
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20. Logged key card entry into both the building, and (if required) into client workspace within the building.
23. Annual SAS 70 Type 2 Audits assure compliance with the business practices and procedures required by financial services clients.Business Continuity Locations all have site-specific Business Continuity and Disaster Recovery plans. The plans are actively updated, and periodically tested.
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25. Enterprise Iron manages those employees with high level managers – generally using teams of ten, including one senior SME and nine lower cost employees.
26. The blended rate of these teams is slightly higher than the costs that might be obtained offshore in Asia, but this unique model unleashes possibilities for both additional cost savings, and higher client satisfaction, through:Faster deployment of the solution; Much higher productivity per unit of labor; The ability to optimize client processes; The ultimate goal of combining highly trained and well managed employees, using optimized processes, to reduce the total number of people required to achieve the same production.
