Offshore Outsourcing and Two-Speed IT

June 1, 2016 4:46 pm | Updated 4 months ago.

Offshore Outsourcing and Two-Speed IT

In today’ world, to leverage rapid innovations in technology, the businesses need to put in place a Digital Architecture. In 2014, Gartner proposed that companies that have a large number of legacy systems to run their operations will need to put in place a Bimodal IT model, to effectively implement digital architecture on top of their existing legacy environment. Mode 1, as recommended by Gartner in their Bimodal IT model, is to deliver Legacy applications reliably with stability and good value for money. The Mode 2, on the other hand, is to deliver Digital applications with agility and improved customer experience and business innovation. While the pros and cons of running a bimodal IT model have been the subject of many debates and discussions, we will simply look at what, if any, is the impact that the Bimodal IT model will have on IT Offshore Outsourcing.

The process of Offshore Outsourcing of Legacy applications, the Mode 1 of the Bimodal IT model proposed by Gartner, has matured over the last few decades, especially with most offshore vendors having achieved ISO 9001 and CMMi certifications.

Prior to looking at the impact of Mode 2 of the Bimodal IT model proposed by Gartner on Offshore Outsourcing, let us briefly look at the characteristics of digital applications and the associated architecture that is proposed to be delivered in this mode:

  1. Security: As the digital architecture provides open interfaces for integration with other applications enabling businesses to develop comprehensive business solutions, it is more susceptible to hacking. Cyber-security, therefore, needs to be an integral part of the underlying architecture.
  2. Scaling: The digital architecture provides scalability and redundancy, by providing a mechanism to distribute workload across private and public clouds, so that in the case of any outage the work can be seamlessly transferred to other components.
  3. Object decoupling: The digital architecture allows for effective decoupling of business functions and underlying processes so that the same process can now be used for providing different business functions. For example, a bank can use the same Lead Generation and Lead Tracking process across all its products.
  4. Analytics: The Digital Architecture enables accumulation and analysis of data from multiple sources in real time. Analytics (Descriptive, Predictive and sometimes even Prescriptive) are, therefore, an integral part of the applications in digital architecture.
  5. Configuration: In a digital architecture, more often than not, the users can themselves change some of the processes to suit their personal preferences, without having to always depend on the developers.
  6. Multi-channel deployment: In a digital architecture, the functionality needs to be deployed across multiple channels, especially mobile in addition to the Web, with extremely quick turnaround time.
  7. Downtime: In a digital architecture the downtime due to any application failure or maintenance needs to be in seconds or minutes rather than in hours or days.

Having briefly looked at the characteristics of digital architecture, let us now see what effects they have on Offshore Outsourcing of digital applications.