There are a few critical points to consider when outsourcing research:  

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Define data points needed and the accessibility of the data (if you cannot get access to data, outsourcing may not solve the problem)

•			Understand who is conducting the research, and if it is primary research, define if the firm will speak on your behalf or conduct it anonymously

•			Outline the process for capturing and analyzing the data — this work will likely be kept in-house, and you’ll need to operate in a seamless manner for the exchange of information with your outsourced provider

•			Realize that you are outsourcing research, not the intellectual property that enhances the research. You may need to place a clear boundary on the information accessible to your research provider for security and data protection reasons.

Application Development Outsourcing and Management

A recent report titled Globalization and Offshoring of Software (a report by the Association for Computing Machinery [ACM] Task Force) cites “Globalization of, and offshoring within the software industry are deeply connected and both will continue to grow. Key enablers of this growth are information technology itself, the evolution of work and business processes, education and national policies.” Application development outsourcing and Application Management (AM) are two fundamental areas fueling the growth of India-based providers and other multinational providers that offer high-skilled labor for specific third party and proprietary software applications. Areas like China, Manila, Eastern Europe and Latin America are also emerging regions for these services.

In a recent interview, Pascal Manhès, Global Managing Director and Jim Hayes, Managing Director, North America — both from Accenture’s AO business — shared that smaller, selective, shorter-term deals have increased significantly in the past three years. Many of their F1000 clients are utilizing Accenture for help with single-process areas such as one application or one service like application testing. They are seeing an increase in small-scale SAP, Oracle, PeopleSoft and Siebel projects, and have positioned themselves to provide capacity services and basic AM, in addition to AO. While unable to disclose specific numbers, Accenture is actively serving clients on engagements ranging from 15–100 people in addition to the larger-scale applications projects where their services are better known.

So, what is driving this demand, and what do these projects look like? Many providers report that these engagements are 3–4 year contracts and all involve specific Service-level Agreement (SLA) commitments. Providers note that engagements could range from a consumer-products firm directly outsourcing 20–25 people on a Siebel project to a specialty project where a provider might have 30 highly skilled subject matter experts, but delivers this expertise with 15 full-time equivalents. A customer company could never achieve that kind of flexibility on its own.

Typically, AO and AM are a bit more complex than some of the other areas highlighted in this article, and it would be difficult to cover the entire spectrum of decision criteria, and provide detail around lessons learned. However, a few critical points to consider when outsourcing AO or AM include:

•			Clearly define the project, its outcome, your current organization and its skills, and the gap (if it exists) needed to reach your desired outcome. If a gap exists, chances are that there is a service provider capable of meeting your needs

•			Review the provider capabilities. A small project may allow a way to perform due diligence “on the fly,” but will still require assessment of real capabilities versus hypothetical skills sets. This rapidly growing industry has not only led to increased competition, but also a large number of untested organizations

•			As services can range from testing, break-fix to entire AM, a carefully crafted statement of work and SLAs will be critical to the success of your project. Even the small projects need clarity to ensure success, and many resources (consultants, lawyers, etc.) exist to help you understand and define roles and responsibilities if the information is not readily available.

PowerPoint, Graphics, Web Design and Document Solutions

Marketers and others responsible for graphical elements of a company brand often find their need for project-based work forces them to look outside their organization for these unique skills. Two firms of note that provide services in this sector are OfficeTiger (recently acquired by RR Donnelley) and Elance. Both these organizations provide access to offshore labor, and can be used to manage single projects or longer-term engagements.

OfficeTiger has developed a reputation for its prepress and graphic skills, many around Microsoft applications, and for corporate communication — the staple, PowerPoint. OfficeTiger has served many of the largest consulting firms, and provides easy access to offshore labor to complete large and small projects. Its resources easily become an extension of a corporate communications department, graphics team or any group that needs help with a presentation.

Elance has developed its reputation around an online marketplace of skilled consultants from which a company can search for skills — many from offshore contractors — or use Elance to serve as a general contractor for these same projects. Similar to OfficeTiger, Elance provides skills that easily become an extension of web design or marketing teams. These skills are accessible and often at a fraction of the cost of a U.S.-based team.