A model developed for delivery of specialist services

In 2008, expenditure on off-shore IT services exceeded 50 billion dollars, of which two-thirds related to the US. The European market is still in development, although making up some ground with 30% compound growth over the last 5 years. Despite the economic crisis it is forecasted that growth will continue to accelerate in 2009. Indeed, the current economic climate has led to a reduction in budgets and, more importantly, an exerted downward pressure on prices. New Delivery Models (such as close-shore, near-shore and off-shore) have thus become one of the most important options in rationalising cost, while pursuing innovation and new project development.

The acceleration of off-shore services encourages companies to increase the scope of their off-shore delivery activities. By off-shore services, we mean those IT services that are delivered from outside the borders of the customer's country, including from nearby countries i.e. near-shore. Typically, it is only after transactional applications development or ERP customisation that interest moves to areas such as Business Intelligence, CRM or e-Business. A December 2008 Gartner publication illustrates this point. In Europe, 72% of large scale BI projects are developed on a customer site, and of the remaining 28% only 13% refer to off-shore projects. The Gartner study outlines recommendations and practices that should be implemented to ensure a project's success. Some of the recommendations include verifying that all necessary skills are available, ensuring the solution provider's Delivery strategy is fully understood, identifying an appropriate allocation of on-shore/off-shore activities and ensuring the defined approach is suited to business needs.

To satisfy these developing client needs, Business & Decision has established off-shore operations as part of a major strategic initiative. Over the last 8 years, we have created 7 offshore agencies across the world, representing 280 employees or 10% of the Group's overall headcount.

In our business, off-shore does not equate to thousands of developers carrying out uniform tasks in parallel for different customers. Business Intelligence, CRM and e-Business require strong industry-specific, functional and technical expertise delivered by relatively small but multi-disciplined teams. What we offer customers is a service that meets cost objectives, offers flexibility of resources and provides a range of specialist skills to meet their specific expectations.

Business & Decision has created a bespoke methodology with customised tools for the management of these specialised off-shore projects. The modes of operation for these off-shore projects are quite unique; as on the one hand, they must take into consideration the target country's culture and economy. On the other, allow for the fact that outsourcing of IT services demands a higher level of control and more rigor during project delivery. Hence, we have trained a pool of Project Managers from our 'western' agencies to use our distinct off-shore methodology to efficiently fulfil front office roles for our customers, whilst managing off-shore development.

Off-shore is our business, and not that of our customers. Nonetheless, opting for off-shore services is one that is recommended to customers who require a full understanding of the success factors, assessment of risk and knowledge of the required infrastructure. We act as trusted advisors in all aspects of setting up and providing these specialised off-shore services.

Business & Decision continues to use its winning strategy in off-shore offerings for delivery of BI, CRM and e-Business services, whilst supporting its customers' cost objectives and it is doing so in a way that maximises flexibility, a necessary element in these uncertain times.