Information Technology Reference
In-Depth Information
35
30
Client FTEs
25
Client contractors
20
Service provider
staff onsite
15
Service provider
staff offshore
10
5
0
Year 1
Year 2
Year 3
Figure 11..
Average annual staff strength for . years.
11.6 . 3
A 3-Year Labor Cost ROI Scenario
With the introduction of a new model, average total staffing for the first year is
49 (10 customer's full-time employees
+
5 contractors
+
30 offshore and 4 on-
site employees of the service provider) compared to 45 internal staff before the
engagement. In the second and third years, average staffing will drop to 39. Many
employees of the service provider will be working on many projects of the customer
applications. These employees are attached to center of excellence facilities. So their
workload is divided across many projects (see Figure 11.4).
11.6 .4
Challenge
The real challenge for which the new model was needed was that the customer was
in dire need of reducing operating costs. At the same time, they were looking to
achieve higher efficiency and better quality. They were also looking to have a con-
sistent quality across all of their projects. Even though the top leadership of the cus-
tomer had mandated continuous process improvement, the customer's own facilities
and resources lacked tools and environment to achieve this top priority goal.
11.6 . 5
Solution
To face the challenge, the service provider established an offshore Central Quality
Group to deliver software testing services to the customer, structured around SLAs.
They selected the team that would go on-site at the customer's location and start
