Feeds

BT Exact: going further offshore

Next phase of outsourcing strategy

  • alert
  • submit to reddit

Internet Security Threat Report 2014

BT Exact, the technical services division of the UK's incumbent telco, has outsourced more than 200 applications to India during the last ten years. The company is now taking its offshore strategy to the next phase, collaborating more closely with its Indian suppliers and setting up policies to force its managers to shift more processes offshore.

Last week, Alex Taylor, head of resource management for BT Exact, shared his vision for the next steps in offshore outsourcing at a conference in London.

He claims that the company still faces significant challenges in the adoption of offshore services. Management resistance has led to the company not achieving the full cost benefits of sending projects to India. In response, BT Exact is setting objectives for internal managers that encourage them to increase their usage of offshore providers.

But it is not only internal managers that are failing to achieve the full cost savings of an offshore model. For instance, of the processes that have been outsourced to offshore partners, 60% of the work is still carried out onshore, a balance that Mr Taylor says does not go far enough.

Of course, fear of being usurped by offshore suppliers is one of the reasons that internal BT managers have been reluctant to adopt offshore strategies, said Mr Taylor. But lack of education about offshore partners' capabilities, and a certain amount of cultural incompatibility has also hampered progress. These issues are tied in with the wider political issues surrounding the growth of outsourcing offshore at the claimed expense of UK jobs.

Mr Taylor said that India does lack a critical mass of project management skills to enable complete lifecycle services to be provided offshore. However, this is not a problem particular to India: he also admits that BT has a similar shortage internally. Interestingly, this could lead to an increased number of UK executives being sent to India to initiate projects, and improve communication between onshore and offshore teams.

Given that most offshore industry observers are calling for Indian firms to set up near-shore and onshore operations to be closer to their clients, this is an interesting development from one of Europe's most experienced offshore users.

Source: Computerwire/Datamonitor

Related Research
Indian Contact Center Outsourcing: Surviving the Shakeout

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.