Stop nickel-and-diming your projects

Jun 7, 2024

The reasons businesses choose to push project delivery off-shore are nothing short of urban myths.  Below, I debunk a couple of these myths and explain why choosing offshore vendors to lead your project is often false economy.

Using local people costs more

I’ve seen it time and time again.  Big organisations opting for the seemingly economical route of engaging offshore SI teams to handle their projects. Bedazzled by the integrator’s ‘A’ team selling-the-dream, they conveniently overlook that the pitch was predicated on blended rates.  It’s only later, when the project’s in full flight, that the chickens come home to roost.  The ‘A’ team from the polished pitch is substituted with inexperienced graduates locally and by offshore staff lacking the necessary skills, understanding and nuance of the customer organisation.  The result? A breakdown in communication, wildly inaccurate interpretation of requirements and defect rates approaching 50%.  And the biggie … the customer team working overtime and/or picking up responsibility for what was previously clearly and unambiguously within the vendor’s scope.  The inevitable months of delay, floods of vendor change requests and often colossal burn rates, all too frequently leads to rapid erosion of business case benefits.  Each month lost to delay, chips further away at those benefits, rendering them elusive and eventually, unobtainable.

Choosing off-shore vendors is nothing short of a false economy. The high cost of low price.  Stop nickel-and-diming your projects.  It’s your career that’s pegged to the successful outcome, so stop being taken in by the BS low-ball pitch of off-shore vendors; it’s smoke and mirrors.

NZ doesn’t have the talent

There is a misguided belief that the pool of skilled resources available locally is limited, particularly for niche or specialised technologies.  Offshore vendors perpetuate this myth, citing their access to deep and broad global talent pools as a better alternative than long recruitment cycles to find the right local talent.  Prima facie evidence suggests that there can be a strong case for engaging offshore delivery expertise; and by the way, we’ve rescued several projects that have gone haywire after starting down this track.  Our experience from working with these offshore teams has positioned us well to bridge cultural and operational gaps.  We understand that the interface between local and international teams is crucial for project success.

It’s all about the people

Using a local firm for your next project isn’t just a suggestion; it’s your strategic advantage.  At Luminate, we understand that projects are fundamentally about people – the right people. Our success is built on selecting people with the requisite skills and high emotional intelligence (EQ). Unlike large off-shore consultancy firms that lack local insight and cultural alignment, we are deeply rooted in the local IT community. We speak your language, share your culture, and bring a wealth of demonstrable experience that can be locally verified.  We know how to read the room.

A culture of excellence

We all know culture influences how teams interact, solve problems, and achieve goals. A strong, positive culture is essential for any organisation aiming for high performance. At Luminate, our PMs are committed to building a project culture based on trust, that in turn, is predicated on vulnerability.  In my experience, this isn’t a trait typically encouraged or embraced within offshore vendor teams.

There’s only the A team

We don’t believe in deploying inexperienced graduates to do the job of seasoned professionals. With us, you’ll always have the ‘A’ team, led by experienced delivery professionals who understand the intricacies of our local environment and the nuances of effective collaboration.

Moreover, Luminate offers direct access to our management team on the ground. We’re not just a name on a contract; we’re your local partners, invested in your success from start to finish.

So why leave your project’s fate to chance? Embrace our local advantage and benefit from people that understand your needs and share your cultural values. Our success stems from having people with strong PM competence and the inbuilt power of EQ, to hit the ground running. Let’s chat or email me to discuss how we can deliver projects together, the right way.