Managing Expertise in IT Outsourcing

This assignment analyzes a case study on Tata Consultancy Services (TCS) and its experience with IT offshore outsourcing. The paper examines how TCS effectively managed dispersed expertise by implementing an organizational structure, knowledge transfer methodology, employee development programs, and expertise sharing systems. It highlights the challenges faced by TCS in managing relationships and organizational structures, as well as their solutions through various practices like Centers of Excellence (CoEs) and a component-based global methodology. The analysis provides valuable insights for other IT offshore companies seeking to replicate TCS's success.

Running head: GLOBAL OUTSOURCING
Global Outsourcing
Name of the Student:
Name of the University:
Author’s Note:

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Paper Reflection
Oshri et al., (2007), in the article reflects on IT offshore outsourcing that helps an
organization to manage resources and dispersed expertise at different sites. It can be found that
through IT outsourcing, information technology businesses propose to achieve annual growth
rate of over 20 percent either through captive company or through domestic supplier. The case
organization in the article is Tata Consultancy Services (TCS) and its eight diverse practices for
managing expertise has been discussed. While TCS was engaged with ABN AMRO-TCS
offshore outsourcing, it faced two major challenges, which were relationship challenge and
organizational challenge. However, TCS was able to manage such dispersed expertise of
outsourcing through implementation of organizational structure, implementation of knowledge
transfer methodology, knowledge retention procedure, employee development and retention,
expertise development, hiring new expertise, reuse methodology and measure reusable assets.
TCS thought of creating a mirror image structure to that of client and therefore the
identification of coupled counterpart worked in dispersed geographical area. TCS experienced
three types of structures such as funnel, network and mirror, but the mirror structure was the
most effective. In order to grip the outsourced system, TCS ensured knowledge transfer from
client to onsite staff to remote staff, which was done using standardized templates. The
information was later decoded by digitization group in Mumbai. Knowledge retention comprised
of succession planning that incorporated both people and process dimensions. The successors
were trained enough to replace managers at suitable times.
The article reflects that TCS, unlike other local firms, depends on Centers of Excellences
(CoEs) for monitoring expertise development. These centers focus on expertise in technological
domain, finance, banking and BPO sectors. Later, TCS focused on continuous expertise

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development through groups such as Centers of Excellence, Quality Assurance and Digitization
and Codification. Irrespective of size and location of outsourcing contract TCS ensured training
provision at different levels. TCS in its ABN AMRO work understood that Google search engine
does not collect information about evolutionary expertise and therefore it linked its search
process with expertise sharing and development vehicles. Such process helped in creating
expertise directory both at onsite and remote team projects.
The article highlights that TCS made component-based global methodology for expertise
development at different sites. Through high level of coordination in different sites, component
interdependency was ensured that helped in exchanging market and product knowledge. Reusing
component data through company level internet has helped TCS to understand the best candidate
for specific projects. Finally, TCS uses matrices for assessing and measuring reusable asset
contribution that operates at CMM level 5. In order to map the pool of expertise TCS had to
manage expertise lens. Enterprise-wide expertise system has been the core solution for
knowledge management in TCS and even to develop or train the expertise.
Considering the two challenges that were mentioned earlier, the case of TCS is quite
relevant to entire IT offshore industry. Boundary-spanning mechanisms would help new offshore
companies to organize and absorb knowledge for creating organizational structure. Transferring
knowledge from onsite to remote providers would retain expertise for longer term. On the other
hand, this article also deals with addressing the organizational challenge through four activities,
which are measure, reuse, search and develop. Assessing new knowledge and expertise
coordination would create a concrete relationship between client and providers. In future similar
offshore companies need to ensure the eight diverse practices that TCS has developed to get best
result.

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References
Oshri, I., Kotlarsky, J., & Willcocks, L. (2007). Managing dispersed expertise in IT offshore
outsourcing: Lessons from Tata Consultancy Services. MIS Quarterly Executive, 6(2).