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Offshoring more values at lower costs; but what about Change Management ?

Posted by: Emmanuelle Blons 19 Dec 11 - 4:22PM  | Emmanuelle Blons
Offshoring gives multinational companies opportunities to create more values at lower costs; but what about Change Management?

Offshoring gives multinational companies opportunities to create more values at lower costs. That means boost in productivity for the global economy – a bigger pie for everyone to share. But gains don’t flow automatically to the people it affects… Offshoring accelerate the pace of change in every society it affects.*


 I am currently working on that kind of project. With the help of a strong team (Anne, Anna, Big thank you if you read this post), we have developed a methodology to mitigate the hardships of those who are impacted and ‘build bridges’ between teams and continents.
This the first post of a series of 10 that will cover this topic. Let’s start by the beginning :


Offshoring projects are projects aiming at offshoring a part or a whole business activity in another country . These projects have major impacts since they generally lead to :


Change of business processes with new actors and business rules

New organizations (to be aligned with processes),

Change of skills of impacted populations,

 New resources offshored.

For Offshoring projects, the impacts on organizations, people and business are huge. Thus Change management is a key activity and a key enabler to ensure a smooth transition.


From a Human Resources perspective:


Redeployment of resources,

New offshore Teams Recruitment & Ramp up on business activities,

Onshore teams transition to new skills/organization,

Extended team management with possibly remote management,

Multicultural differences.


From a Business Perspective:


Continuity of Business activity,

Fluidity and efficiency of processes,

Support the development of analysis skills for onshore teams (usually identified as a key benefit in offshoring activities),

Follow up KPIs and reach ROI.


The next post will cover the 4 Key principle for Change Management within offshoring projects.

* Offshoring, Understand the emerging Global Labor market- McKinsey Global Institute – Edited by Diana Farrell – Harvard Business school Press.
**Picture : Flickr, Andy Kaye, Ganesha
*** Thanks to Anne & Anna for their great contribution to this post.

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