Secrets of Offshoring Success

Mary C. Lacity probably knows as much about IThungry offshoring customers and suppliers. And they
outsourcing as anyone in the industry. Currentlyplan a book to be published by early 2008.
professor of information systems at the University ofLacity and Rottman's early examinations focused on
Missouri-St. Louis, Lacity has studied the industry sincethe offshore outsourcing learning curve and best
its genesis nearly 20 years ago. And you'd be hardpractices for accelerating it while maintaining quality
pressed to find someone who's talked to more CIOsand cost savings. Now they're focused on the delicate
about their outsourcing coups and catastrophes.Yetprocess of transferring knowledge offshore while still
just a few years ago when CIOs would call Lacity upprotecting intellectual property.
and ask her if she could send them any goodThe basic thrust of their findings-that offshore
offshoring research, even she had to say, "No."outsourcing takes a lot more work than its domestic
Sure, there's anecdotal evidence of what's worked forcounterpart-comes as no surprise. But their research
some and what hasn't for others when sourcing ITcrystallizes just where that micromanagement proves
work overseas. But definitive best practices havemost effective and sheds light on some novel tricks of
been hard to come by.the trade. Although most advice about how to do
To date, they've interviewed more than 165 individualsoffshore outsourcing right focuses on processes,
from 40 companies-and not just the usual suspects.requirements, and the like, Lacity puts forth an
Certainly, they've talked to IT executives and projectinteresting thesis. Successful offshore outsourcing
managers at client organizations. But Rottman alsoultimately is not about processes or requirements.
spent three weeks in Bangalore, Mumbai andRather, it is the result of a continuous build up of "social
Hyderabad interviewing members of offshorecapital" between customer and supplier. Recently,
development teams from managing directors down toLacity and Rottman sat down with Senior Editor
programmers. Cumulatively, these one-on-one talksStephanie Overby to discuss some of the best-and
have provided a gold mine of data. The duo hasworst-ways to do just that.
produced no less than eight published articles andRead full article at For more information visit
reports from their research, gobbled up by informationsoftwaredevelopmentblog.