In the earlier blog we saw different stakeholders involved in IT services organization. We broadly classifed them as Order takers: Mostly the IT service providers (offshore) with any contractors/partners at offshore and Order-Givers: Client Onshore, Client Captive centers offshore, and the IT service provider (Onshore). We saw the complexity continum in engagement depending on number of stakeholders in play. In this blog we look at the interaction dynamics between the different stakeholders:
The dynamics can best be understood along the following dimensions:
Teams: This details the team members involved
Interactions: This detailes the Software lifecycle phases when the interactions is pronunced
Projects: Details the projects where the interaction plays out.
It is important to understand not all stakehoders will be present in all engagements and also not all interactions may play out. One can see different combinations of stakeholders and interaction depending on how the organization and information flows are setup. In this blog we will look at the complete picture to understand the dynamics well.
The diagram below provides a pictorial representation of the stakeholders and the interactions dynamics:
We will look at each interaction pairs and the dynamics that are not so evident in the above diagram:
Client Onshore + IT Service Provider (Onshore): The cosy relationships whereby the client onshore stakeholder interacts with Onshore vendors. This interaction is often relationship based. Most often they have shared interest (retaining control) and drivers (read saving their jobs). They often pair up to protect their joint interests. If things go wrong it is always easy to blame the Offshore entity first and then followed by Order takers.
Client Captive centers Offshore + IT Service Provider (Offshore): The relationship is driven primariy in terms of deliverables, metrics and reports. The order giver and order taker relationship is noticebale and pronounced. They often are at logger heads and built on mistrust. The mistrust stems from fact that the captive center leads despise the fact that the IT service provider at offshore get most of instructions and details from their Onshore counterparts. Often they captive center clients control information and draw their power and position on additional information they have. In times of trouble they easily blame the all woes to the IT Service provider offshore team. They like to pair themselves with the Client Onshore but often client onshore dont see them adding value and believe them to be necessary evil to deal with.
Client Captive centers Offshore + IT Service Provider (Onshore): Mostly the interactions are very limited, but whenever this interaction is strong the IT service provider often suffers due to miscommunication and vested interests. Mostly the client captive center team hates them but engages them to down-play or comlain against IT service provider offshore team. Sometimes we see the IT Service provider onshore engage the captive center team just to draw a wedge and feed their own interests and drivers (jobs).
Client Onshore + IT Service Provider (Offshore): This relationship is seldom seen, but wherever this exits the interactions underplay the captice venter and IT Service provide onshore. Usually we see this interaction well established when the onshore component is non-existant and client prefers 100% offshore execution. This is best and most cost optimal solution in most cases and often not preferred by large Tier-1 players: IBM, Cap, Accenture, etc.
Client Captive centers Offshore + Client Onshore (Onshore): This interaction exists whenever there is a captive center. The interactions are mostly driven due to business reasons and exists for business purposes. The captive center role becomes relevant mostly when there are multi-vendor/partners on the deal. The relationship most often is driven to get work done from multiple vendors. This is not well detailed here, but they share common interest of saving their jobs and roles under the guise of project management and control.
IT Service Provider (Onshore) + IT Service Provider (Offshore): Normal relationship that exists and they pair up to protect the interests of the overall contract with IT Service provider. The relationship becomes complex in light of other interactions in the game.
But is there a right interaction and right stakeholder model that one can choose depending on the requirements? What is the optimal stakeholder and interaction model? We will discuss and cover this in the upcoming blogs.
The dynamics can best be understood along the following dimensions:
Teams: This details the team members involved
Interactions: This detailes the Software lifecycle phases when the interactions is pronunced
Projects: Details the projects where the interaction plays out.
It is important to understand not all stakehoders will be present in all engagements and also not all interactions may play out. One can see different combinations of stakeholders and interaction depending on how the organization and information flows are setup. In this blog we will look at the complete picture to understand the dynamics well.
The diagram below provides a pictorial representation of the stakeholders and the interactions dynamics:
We will look at each interaction pairs and the dynamics that are not so evident in the above diagram:
Client Onshore + IT Service Provider (Onshore): The cosy relationships whereby the client onshore stakeholder interacts with Onshore vendors. This interaction is often relationship based. Most often they have shared interest (retaining control) and drivers (read saving their jobs). They often pair up to protect their joint interests. If things go wrong it is always easy to blame the Offshore entity first and then followed by Order takers.
Client Captive centers Offshore + IT Service Provider (Offshore): The relationship is driven primariy in terms of deliverables, metrics and reports. The order giver and order taker relationship is noticebale and pronounced. They often are at logger heads and built on mistrust. The mistrust stems from fact that the captive center leads despise the fact that the IT service provider at offshore get most of instructions and details from their Onshore counterparts. Often they captive center clients control information and draw their power and position on additional information they have. In times of trouble they easily blame the all woes to the IT Service provider offshore team. They like to pair themselves with the Client Onshore but often client onshore dont see them adding value and believe them to be necessary evil to deal with.
Client Captive centers Offshore + IT Service Provider (Onshore): Mostly the interactions are very limited, but whenever this interaction is strong the IT service provider often suffers due to miscommunication and vested interests. Mostly the client captive center team hates them but engages them to down-play or comlain against IT service provider offshore team. Sometimes we see the IT Service provider onshore engage the captive center team just to draw a wedge and feed their own interests and drivers (jobs).
Client Onshore + IT Service Provider (Offshore): This relationship is seldom seen, but wherever this exits the interactions underplay the captice venter and IT Service provide onshore. Usually we see this interaction well established when the onshore component is non-existant and client prefers 100% offshore execution. This is best and most cost optimal solution in most cases and often not preferred by large Tier-1 players: IBM, Cap, Accenture, etc.
Client Captive centers Offshore + Client Onshore (Onshore): This interaction exists whenever there is a captive center. The interactions are mostly driven due to business reasons and exists for business purposes. The captive center role becomes relevant mostly when there are multi-vendor/partners on the deal. The relationship most often is driven to get work done from multiple vendors. This is not well detailed here, but they share common interest of saving their jobs and roles under the guise of project management and control.
IT Service Provider (Onshore) + IT Service Provider (Offshore): Normal relationship that exists and they pair up to protect the interests of the overall contract with IT Service provider. The relationship becomes complex in light of other interactions in the game.
But is there a right interaction and right stakeholder model that one can choose depending on the requirements? What is the optimal stakeholder and interaction model? We will discuss and cover this in the upcoming blogs.
