CEOs at three of India’s top ten outsourcing providers recently told the
Times of India that they plan to “reduce on-site work by up to five percent over
the next year and handle traditional onsite projects such as managing takeover
of an existing outsourcing contract& through videoconferencing. (The Times
did not name the CEOs or their companies.)

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src="http://www.it-toolkits.com/images/CloudOutsourcingGuide.jpg" width=85
longDesc="Security Manual Template - Sarbanes-Oxley" height=110>As the
whistleblower case against Infosys, alleging that the Indian IT services
provider misused B-1 visas to bring offshore staff to the U.S., heads to court
later this year, it’s unlikely that scrutiny of the temporary worker visa system
will subside. And, as of Monday, talks between the U.S. and India intended to
address these visa complaints among other issues, were called off
indefinitely.

Prepare now for the inevitable effects of reductions in onshore and on-site
headcount:

• Conduct a Process Design Review – Make sure that
  essential on-site roles required for seamless operation of global delivery
  will be filled. Consider contract resources to handle short-term gaps, advises
  Amneet Singh, vice president of global sourcing for outsourcing consultancy
  Everest Group. Longer term, developing such skills in-house maybe a better
  bet. “Buyers are picking and choosing certain roles to bring back in-house,”
  says Esteban Herrera, chief operating officer of outsourcing analyst firm HfS
  Research.


• Invest in Change Management Efforts – Prepare users for
  potential tweaks in the delivery model and changes in their day-to-day working
  experience, says Singh, and execute an effective communication strategy to
  address any uncertainty in the business
  Consider Nearshore Alternatives –
  Providers with alternate delivery locations, like Mexico, do not have the same
  temporary visa restrictions as a result of the North American Free Trade
  Agreement (NAFTA), Herrera points out. They can more easily transfer workers
  across borders to manage projects and knowledge transfer.


• Beef Up Your Technology Backbone – Your offshore provider
  is likely to require more high-end videoconferencing or digitization
  capabilities to manage future projects. Ensure you have the right
  infrastructure and software to handle the proposed technology enablers of
  diminished on-site staff, says Singh. Also, make sure to design and execute
  effective internal training programs for the new tools.


• Revisit Contract Pricing - If your IT service provider is
  planning to move on-site roles overseas, it’s probably a good time to
  renegotiate price, but don’t play hardball. Sharing the upside of sending more
  work to less costly locales will result in a happier and healthier
  relationship long-term.

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