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merging as a major offshore IT outsourcing destination ? China offers a massive lowwage and increasingly skilled workforce. ? But the initial planning, ongoing operation and management of IT/software sourcing is one of the most difficult petencies facing IT and business executives today. A stepbystep case study 1. Initial engagement 2. Interviews 3. Contract negotiation 4. OnGoing operation and management Ongoing relationship management Whom to send? VISA problems Insurance issue Housing and transportation Holidays and overtime Misc. Initial engagement 關(guān)系,關(guān)系,關(guān)系 relationships, relationship, relationship ? A good “ Salesperson” with strong US ties (Walter) ? Indians occupy more senior management positions than Chinese. ? Chinese needs to learn to move up corporate ladder and build works. ? Start early Interviews They run into a real big problem 1. English proficiency is a big problem, especially over the phone. 2. Senior technical staffs speak worse English. 3. They were not prepared to get all the people we need together. (Internal anization structure problem, skillbase). 4. Definition of “ Senior” (they are using this as seniority, not on the level of technical seniority). Experie and technical lead is the key. 5. We want SENIOR developers in their 30s and 40s, where are they in China? They send in programmers in 20s with 13 years experience as “ senior” – definitely negatively impact clients. Our Hints: 1. English, English, English 2. Satisfying client’ s needs is ultimate, including hiring Indians and Americans for the job (as part of the outsourcing). 3. We should find means to establish a technical career path to have people in their 40s still in technical area Contract negotiation ? We moved too fast (it is our problem). ? They did not have legal experts on their side nor a US branch office. (Establish legal department in your US branch) ? They tried to get a big contract right off the bat – very ambitious but not stepbystep. ? Don’ t bee a handy/versatile man. – Legal terms and conditions must be carefully reviewed, and through proper a procedure. – Later problems do occur. – Solving later problems are even worse, definitely hurting business. Ongoing relationship management ? They did send senior management people – But they don’ t speak English well nor they are technical leads, we didn39。t know their roles. – Once they left (even for a short while), there’ s no constant munication with us – we are all at a loss. ? Managing relationship at different levels – A low level manager on our side can do a major damage – Even our developers can hurt their effort ? They did not know how to maintain a good relationship