Answer:
Man Management is one of the most critical factors of Information Technology Outsourcing. Effective People Management lead to success of the project and poor management results in project failure. People management is important in every project but it is of vital importance when the projects are outsourced because the management shifts towards another company, with different culture, standards and procedures. Information Technology is all about human computer interaction. Human interact with computers, every time discovering a new way, and creates spectacular wonders. So it is necessary to manage them in the best possible way to achieve maximum success.
Some of the factors that need to be considered in People Management of Information Technology Outsourcing are listed below.
- Choose the Right People: Most important task in People Management is to hire the right people for the right job. In early evaluation Of Information Technology Outsourcing, People roles and responsibilities should be explicitly identified.
- Choose the Right Mix: After choosing right people, next step is to build the best team out of them. Best team is of heterogeneous nature. Skills of all kinds, which are required for a project, should be gathered in one team. Size of the team depends on the nature of project. Usually small teams are recommended for effective utilization of resources.
- Consider Every Stakeholder: Stakeholders are people who are directly or indirectly affected by a project. Managers should take into account effect of Information Technology Outsourcing, on every stake- holder which includes customers, suppliers, and employees.
- Manage the People Issues: When the decision of Information Technology Outsourcing is made, all people issues regarding it should be considered. The foremost of which, is communication. Communication Gap is a major factor of project failure. When the requirements will not be gathered and explained correctly, no good can come out of it. People should be provided with all the communication resources so that they can share information from time to time.
- People Evaluation: All the people involved in a project should be evaluated time to time, on the basis of their performance. One’s who achieve their targets should be provided with incentives. Acknowledgement of work motivates the employees which reflect in the work. Evaluation also gives rise to healthy competition which is beneficial for the overall project.
- Poor Management: Poor People Management increases the hidden cost of the project, which includes the cost of failure due to poor selection of new employees. According to a research, US lose $105 billion every year due to poor people management.
Outsourcing should be a need, not an excuse to get rid of poorly managed and costly service. Outsourcing for a wrong reason can lead to loss of control of resources and personnel, who are a part of organization family and are trained for a specific business practice.
