Governance and Knowledge Management in IT Ecosystems

Third, companies should align their performance metrics for managers with the new offshore strategy

. A common mistake is to set performancelevels for offshore operations without giving onshore managers incentives to send more work their way. For example,an electronics company trying to ramp up its offshore data center operations,and still asking the head of its onshore center to keep it running with 99.99 percent uptime for all applications. Additionally, there are no incentives for cost savings, the offshore operationis staffed up, but its utilization remains low because the onshore manager receives no encouragement to send it work. As a result, the company will see no benefit from its offshore data center investment, unless oruntil IT and business managers give the head of the onshore data center an incentive to cut costs through offshoring.

Governance and Knowledge Management in IT Ecosystems

By: Ovex Tech

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