The Manage IT Newsletter - Bridging the communication gaps in global outsourcing:

This issue focuses on the challenges of managing offshore outsourcing relationships and how desktop video conferencing tools can help you to create stronger communities within and across enterprises.

Welcome to this month's information packed issue of the "Manage IT Newsletter." This monthly publication is a part mentoring and part coaching tool dedicated to helping IT managers enjoy a richer career experience so they can reach their full potential.

Our focal topic this month is the effective management of offshore outsourcing relationships. As companies rapidly move toward offshore outsourcing, more and more of them are discovering the special challenges that result from working in remote partnerships. Some are learning through the bitter disappointment of unmet fiscal and business benefit expectations. Our featured guest author this month is Gerald J. Burnett, Chairman and Chief Executive Officer, Avistar Communications Corporation (http://www.avistar.com), a company that specializes in transforming key business processes by integrating visual collaboration into daily workflow.

Burnett is one of Avistar's founders and has been Chairman of Avistar Communications Corporation since March 2000. He has been CEO of Avistar and a director of Collaboration Properties, Inc., since 1998. He is a member of MIT's Corporation (Board of Trustees) and holds a Ph.D. from Princeton University in computer science and communications. Burnett helps global financial services companies adopt video collaboration technology and integrate visual communications into their daily workflow to connect communities of video-enabled users within and across enterprises. He also works with global companies to implement video technology for outsourced environments.

Whether you are in a company that is a buyer or supplier engaged in global outsourcing, I assure you that you will find the ideas presented by Burnett extremely valuable.

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With warmest regards,
Joe Santana,
Co-author Manage IT
www.joesantana.com
***************************In this Issue ****************************
* Focus Topic - Effectively Managing Global Outsourcing Relationships
* IT Management News & Trends: Three articles that focus on the challenges of outsourcing
* Tip Sheet: Tips on business benefits of desktop video
* Closing Comments and Announcements
*********************************************************************

--------------------------- Focus Topic -----------------------------
Effectively Managing Global Outsourcing Relationships
By Gerald J. Burnett,
Chairman and Chief Executive Officer,
Avistar Communications Corporation

The biggest issue facing IT today is how to successfully manage outsourced environments. The old estimates of cost savings of 50-70 percent or more on an outsourcing contract are rapidly dropping (Computer Weekly, January 13, 2004). When a project goes bad, costs escalate and companies have taken write-offs of $20 million or more on a project that flopped (Computerworld, January 5, 2004). Avistar Communication, a provider of desktop video conferencing technology, believes that success in outsourcing depends on the quantity and quality of regular interaction. We believe that when video is available at the desk, easy to use and high quality, it is the missing link in ensuring that the four C's of outsourcing are met . . . Communication, Coordination, Collaboration and Control. Let's look at these more closely:

Communication - The reality of outsourcing is that two groups of people who may have different approaches to work from disparate parts of the world are thrown together to deliver, on deadline, projects that need careful coordination, knowledge transfer and the ability to revise and redirect on a continual basis. With more than 50% of our brain devoted to vision, (See Mriganda Sur, MIT Research, Orientation Maps of Subjective Contours in Visual Cortex, December 1996), by using only phone and email we are conducting business blindfolded. People are not always on the same page and may not express their views or concerns precisely. Using video means that managers on one side of the globe can keep in daily contact, make ad hoc calls and meet eye-to-eye with employees across the globe. When people see each other clearly the interactions are impacted by some of the 7,000 facial expressions that we share across cultures (Brian Bates/John Cleese, The Human Face - BBC 2001). Face-to-face-communication increases understanding, especially when there are cultural differences involved.

Coordination - A trade-off has to be made when deciding where to outsource. Near-source to a country that shares the same language and business culture to save some money, or, for bigger cost savings, outsource offshore where challenges of language, culture and time zone differences are increased. The further you get away from your desk the more difficult coordination becomes, the greater the risk is and the more uncomfortable you feel. Desktop video raises the level of coordination possible in the outsourced environment and reduces the trade-off. Face-to-face meetings, desktop to desktop, can take place on a regular or on an ad hoc basis.

Collaboration - For software development programs that require an iterative development process with mid-course directional changes and clarification of specs for the errors, exceptions, omissions and changes that frequently occur, video makes it easier to escalate and resolve problems of any size. Speeding up cycle time and knowledge transfer is imperative in order to maximize results. In fact, video might be a solution for outsourcing Agile Programming. One Avistar customer outsources software development and uses video to coordinate from the U.S. to England, Spain and India. The project is going so well that the customer is expanding its use of video.

Control - One thing IT manager's fear when working with outsourced teams is that out of sight is out of mind. Feeling in control is easier when you trust your outsourced partner and building trust is difficult to achieve across cultures and distance when you have never met especially across multi-site locations. Nothing beats looking at the white of a person's eyes when you agree a deadline but it's not always feasible to travel and it's expensive. Having spontaneous face-to-face contact on a daily-basis helps build trust.

Bottom-line: The presence provided by desktop video is unequaled for creating a cost-effective person-to-person interface because it ensures proper communication of requirements and issues, and helps develop trust, transfer knowledge, define performance requirements and expectations and bridge the pitfalls of cultural differences.

-------------------- IT Management News and Trends -------------------
This month, we offer three select articles that focus on the challenges of outsourcing.

A Computer Weekly article published Jan 13, 2004 that warns against the hidden costs of offshore outsourcing that can eat away at attractive cost savings
http://www.computerweekly.com/articles/article.asp?liArticleID=127447&liArticleTypeID=20&liCategoryID=2&liChannelID=16&liFlavourID=1&sSearch=&nPage=1

An Information Week Nov 17, 2003 article that advises outsourcers on how to proceed with caution.
http://www.informationweek.com/story/showArticle.jhtml?articleID=16100671

An article published in the Feb 16th 2001 issue of Intelligent that explores the questions "is moving your development project offshore right for you?"
http://www.intelligententerprise.com/010216/cio1_1.jhtml?_requestid=9804

--------------------------- Tip Sheet --------------------------------
For your free list of points you can use to make a business case for using desktop video to enhance your business relationships, go to the March 04 tip sheet at http://www.joesantana.com/freenewsandtips.htm

----------------- Closing Thoughts and Announcements -----------------
NEED HELP WITH CREATING A VISUAL LINK WITH YOUR OFFSHORE PARTNERS?
Avistar develops desktop video collaboration solutions that deliver TV-quality video calling, recording, publishing to web and emails, video-on-demand, broadcast, and document sharing. Integrating video into day-to-day business processes will help improve relationship with your customers, cut costs, improve productivity and ultimately enable a company sell more. For more information contact info@avistar.com

WANT TO KNOW WHAT IT PROS AROUND THE WORLD THINK?
Join to the IT Professional World Wide network at http://itpww1-network.ryze.com (Membership growing at a phenomenal rate and it is still free).

WANT TO LEARN WHAT TO OUTSOURCE FOR TOP RETURN ON INVESTMENT?
Get your copy of the audio program titled "Doing more with less through IT Outsourcing," at http://store.mixonic.com/joesantana

WANT TO HELP YOUR FRIENDS LOOKING FOR ADVICE ON HOW TO FIGHT BURNOUT AND ACHIEVE PEAK PERFORMANCE
Have them visit www.joesantana.com and sign up for the free TIPS DRIVING PEAK PERFORMANCE EMAIL SEMINAR. Delivered over seven days, this program is packed with advice that can immediately be put to use by a rookie or a veteran IT manager. (HR pros will also find it a rich source of ideas they can use to coach IT managers).

WANT TO LEARN MORE ABOUT IT MANAGEMENT WITH JOE?
Visit www.ULiveandLearn.com and register for the IT Management webinar. This information packed program comes right to your desktop and offers you advice on one of your most important career decisions.

NEED HELP QUICKLY BUILDING A PIPELINE OF CANDIDATES.
Contact EmployeeROI by phoning 1-888-654-8845 or visiting www.employeeroi.com

I hope you enjoyed this issue of the IT Managers Newsletter. As always, your feedback on topics that interest you is always appreciated.

JS