When should organizations distribute their resources across multiple geographies? Is global distributed delivery another management fad? Or is it an effective means of delivering digital, data and technology services?
These are some of the questions that we have tackled in our think piece Delivering value in the public sector through global distributed delivery. In today’s climate of fiscal constraint and growing public demands, efficient use of taxpayers’ money is more critical than ever. One viable strategy is adopting a global distributed delivery model, traditionally known as offshoring. Not only does this optimize costs but also provides government organizations with access to a diverse pool of talent and expertise, essential for leveraging new and evolving technologies.
Weighing the pros and cons of a global distributed delivery
As the business development director for the Public Sector and Defense at Eviden, I have uncovered some valuable insights. For instance, Eviden’s collaboration with the Department for Environment, Food & Rural Affairs (Defra) involved several successful cloud migration projects, showcasing the potential of offshoring when adequately managed. Similarly, partnerships with HM Revenue & Customs and the Department for Education highlighted how offshoring can support critical public sector functions.
Our experience is that a well-implemented global delivery model offers several advantages:
- Access to diverse talent: Organizations can tap into a wide range of specialized skills and expertise that may be unavailable locally.
- Scalability: Flexible teams can scale up or down quickly based on changing business needs.
- Technological advancements: Global teams often bring the latest technology and innovation, helping organizations stay ahead.
- Cost efficiency: Lower labor costs in certain regions can significantly reduce overall expenses.
However, transitioning to a global delivery model isn’t without its challenges. Let’s take a look at some of the leading ones:
- Data security and compliance: Ensuring the security and confidentiality of sensitive public sector data is paramount.
- Regulatory compliance: Navigating different legal and regulatory environments can be complex.
- Communication barriers: Differences in time zones, languages, and cultural norms can lead to misunderstandings.
- Quality control: Maintaining high standards across diverse teams requires robust management and oversight.
The benefits and costs of global distributed delivery depend crucially on how strategies are defined and implemented. This is why it is necessary to look beyond the arithmetic of the cost to additional benefit drivers.
Global distributed delivery providers need to ensure cost savings are not at the expense of quality of service. For this, stringent controls must be put in place and performance must be managed. The key theme of our think piece mentioned above is based on one key observation: Decision-makers need to plan and implement policies that will result in reasonable outcomes. And because every organization’s resources, skills and priorities differ, each is likely to approach the decision differently.
When considering this model, governments must carefully weigh the pros and cons. The decision should be informed by a comprehensive business case that addresses potential benefits and risks.
Here are three key considerations:
- Operational efficiency: Can offshoring boost efficiency, streamline processes and improve service delivery?
- Talent acquisition: How can the organization attract, nurture and retain the digital talent needed?
- Risk management: What measures can be implemented to mitigate risks associated with offshoring?
Taking global distributed delivery to the next level
Eviden is a global digital transformation leader with an unmatched focus on enabling our customers to be future-ready. Our comprehensive approach ensures we can support development, operating model design, business case, transition management and delivery of digital, data and technology services.
From empowering government organizations and global leaders to transforming lives, Eviden is the global distributed delivery partner for your needs.
Connect with me to learn more about how you can optimize the global distributed delivery model for agility, efficiency and impact.
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