As a technology executive, it’s crucial to manage projects efficiently and cost-effectively. When transitioning projects offshore, integrate them into your overall operational technology model instead of replacing onsite staff. This strategy fosters smoother acceptance and allows the offshore team to seamlessly integrate into your organization, enabling the addition of offshore resources as needed.
India, Mexico, South America, and the Philippines have become key destinations for project staffing. While managing projects across various locations is inherently challenging, relying on offshore third-party teams adds an extra layer of complexity. In this section, we will discuss some of the unique challenges faced when managing projects in these locations and how to address them.
Challenges in Managing Projects Across Multiple Locations
Managing projects across multiple locations can be a daunting task for even the most experienced project managers. From communication barriers to cultural differences, there are various challenges that need to be addressed to ensure successful project management. And when it comes to managing projects in offshore locations like India, Mexico, South America, and the Philippines, these challenges become more complex.
Let’s take a closer look at some of the key challenges faced by project managers when managing projects in these countries:
Communication Barriers
One of the biggest hurdles faced while working with offshore teams is the communication barrier. Differences in time zones, language barriers, and cultural differences can lead to misunderstandings and delays in project progress. To overcome this challenge, it’s crucial to establish clear and effective communication channels from the very beginning of the project. This can include using common project management tools for documentation and tracking progress, conducting regular meetings with all stakeholders, and setting expectations for response times.
Cultural Differences
Each country has its own unique culture, customs, and work practices that can significantly impact project management. For instance, countries like India and Mexico have a more hierarchical business structure where decisions are made at the top level. On the other hand, countries like South America and the Philippines value collaboration and teamwork. It’s essential for project managers to understand these cultural differences and adapt their management approach accordingly.
Technology and Infrastructure Limitations
Project managers may also face challenges when it comes to technology and infrastructure limitations in offshore locations. In countries like India, Philippines, and South America, access to reliable internet connection and updated software can be limited. This can lead to delays in project progress and hinder communication between team members. To mitigate this challenge, it’s important for project managers to plan ahead and provide necessary resources or workarounds for team members.
Legal and Regulatory Compliance
Different countries have different legal and regulatory requirements that need to be followed while managing projects. Project managers need to be aware of these regulations and ensure that all project activities are in compliance with them. This can include data privacy laws, employment laws, and tax regulations. Ignoring these requirements can lead to legal issues and jeopardize the success of the project.
Third Parties
When collaborating with a third party, it’s crucial to embrace their established processes. You chose this organization for their expertise, not just cost savings. Offshore development organizations exhibit remarkable efficiency by refining their processes. Unpleasant encounters often arise from misunderstandings or resistance. Successful collaboration with a third party requires understanding their methods and reaching agreements to integrate work harmoniously. Remember, no two organizations are identical.
It is crucial to have a proficient project manager working onsite in collaboration with an equally adept manager offsite who comprehends the dynamics of both realms. This synergy ensures a seamless workflow and maximizes efficiency.
To foster collaboration and streamline issue resolution, it’s crucial for external individuals to grasp the organizational structure of the hiring company. In a typical setup, an on-site Program Manager interfaces with the Business Unit. For larger programs, the Program Manager’s team includes multiple product managers leading project teams. These teams consist of a project manager, as well as professionals responsible for business analysis, development, testing, and deployment.
The Program Manager works with the project managers to delineate the work to be sent offshore.
Offshore Success
To make the move to an offshore team happen successfully there are a number of activities that need to be completed for the smooth transition of project work:
- Establish a PMO offshore to manage building the new operation. If you are leveraging an offshore provider, they will provide the project infrastructure to support the transition. Leverage the PMO to help coordinate on-boarding activities to fill in leadership gaps until all leaders are in place.
- Perform a one-to-one mapping of skills to those being hired offshore in order to understand the level of skills transfer/ shadowing required. Keep in mind that just replacing staff, one to one based on a schedule, is not a transition plan.
- Assign onsite leadership to work with PMO and take ownership of transition.
- Identify and/ or hire the management team offshore who will replace or supplement and interface with the management team onsite. Keep in mind that the offshore team will now “own” the resources.
- Identify the project ordering (what projects are going) for transition, starting with less complex efforts in order to demonstrate success, hone the transition process, and allow the base team offshore to become established.
- Build the transition plan to include BU and Program leadership who will assist in the training of new staff. This will help smooth the transition as leadership will become comfortable that domain and business knowledge is being retained.
Since the new offshore team members haven’t collaborated before (unless through a third party), they will initially lack a sense of cohesion.
Without bonding and unfamiliarity between offshore, onsite, and new recruits, achieving project continuity during site transitions can be challenging. This is particularly true if the onsite team is unaware of the cultural working norms in the offshore location.
Add to the concern that these recruits are unfamiliar with your company’s processes and tools. This puts pressure on the offshore leadership team to establish expectations, scope, and roles for the new hires. The onshore leadership team must also actively assist in training and orienting the new offshore team.
Click here for a post on handling cultural issues in offshore projects.