She has implemented a “Best in Class” outsourcing strategy that has resulted in 50% reduction in contract cycle time and over $100M in cost savings.

Julia is a Certified Outsourcing Professional (COP) with industry experience dating back to 1990 in contracting and outsourcing, negotiation, supplier relationship management, procurement strategy development, financial analysis and reporting, project management, and Lean Thinking/Process Excellence methodologies.

ValueNotes: What are the challenges that you encounter while offshoring?

Julia: There are many challenges but once they have been tackled in a deliberate and   appropiatemanner, the benefits of offshoring are numerous. Some challenges   include: culture, geographic and time differences, language barriers, creating a robust   governance model in terms of recruiting and retention - finding adequate expertise and  quality standards, the volatility of the political environment and regulatory or tax   concerns.  Any of these challenges can be discussed in great detail but the cultural   differences challenge is one of most important since it is the bridge to making the   relationship succeed or fail. The cultural aspects that are most critical to the success  of  an offshore arrangement are more from an organizational level rather than a social  level. For example, in the United States, there is greater emphasis on the result, while  in India, there is more emphasis on taking the time to get it right. Americans report a problem on identification, where as in India, a problem is reported only when it cannot be resolved. Indian business culture tends to view contracts as intentions and guidelines for future action. Americans have a preference for clear, detailed agreements without vague or general terms. For Americans, failure to follow through is viewed as a sign of untrustworthiness. In the US, it is the listener’s responsibility to understand, where as in India, it is the speaker’s responsibility to be understood. In China, the communication style is indirect and conflict is avoided. The management style in China is reactive rather than proactive; meaning, Chinese will wait for orders and will do what they are told. Also, transparency is an issue in China. There is less or no visibility until final delivery. Offshoring mandates effective communication, transparency of metrics, and robust oversight. Last but not least, prior to engaging in any offshore arrangement, it is wise to conduct cultural awareness training.

ValueNotes: What are the key factors that you would consider while choosing a service provider?

Julia: In order for your offshore program or project to be successful, the right location and right partner must be chosen. This is not a simple task. There are always risks associated with offshore locations. The risks may include geopolitical issues, skill competencies, local labor laws, legal and intellectual property issues, wage and currency fluctuations, etc. To fully understand the impact of any of these risks, a location analysis should be performed to determine if the benefits outweigh the risks. In addition to location, the process of choosing a provider may not be as easy as one might think. If there are many providers to choose from, one must identify their key differentiators and evaluate them. If there are very few providers, the sponsor may have to invest more resources (time and money) to get the provider to the appropriate level. Expertise and quality are of utmost importance. In order to fully understand the provider's capabilities and differentiators it is critical to evaluate the provider's performance and build a strong working relationship. Sourcing advisors are skilled in undertaking these evaluations to determine the provider's strengths and weaknesses, support you in the selection process, and maintain the relationship.  Site visits and references are crucial to the selection process of any offshore provider. Visiting the provider's remote site will give you valuable insights into their operations and quality of services.

ValueNotes: Given the latest accounting scam in Corporate India, while selecting a service provider would you do anything differently now?

Julia: Satyam's accounting fraud scandal certainly has shaken those companies who outsource to India. Yes, the need for stronger corporate governance and oversight are imperative to offshore arrangements. A company offshoring to another must perform its due diligence. Offshoring makes it more challenging to monitor performance but a robust governance model in place and key performance indicators that identify and track performance metrics, will help such corporate disasters from occurring. These types of measures help the company offshoring to stay connected and on top of what's most important.

ValueNotes:  What are the key trends in offshoring with respect to your industry? How do you see this changing over the next couple of years?

Julia: The Consumer Healthcare Industry has been affected by the offshoring prospect, just like any other major industry, because the cost savings advantage is so compelling to a global company's competitiveness. Although cost savings are still a major factor in the offshoring business model, we are seeing the transition from low-cost and market penetration objectives to development of high-end technical and Research & Development (R&D) excellence. Our providers must be highly skilled and experienced without sacrificing the low cost benefit.

ValueNotes: The current economic downturn has impacted several businesses. In the current scenario, do you see an increase or decrease in outsourcing? How do you think this will impact the outsourcing industry?

Julia: I don't believe there will be a significant negative impact to outsourcing because companies need to manage their costs more now than ever before. New development initiatives tend to go down during a downturn but outsourcing current projects will continue. Outsourcing or offshoring has been established as a business strategy. The option to no longer offshore is a detriment to the vitality of a global company. I do believe, however, that as the wage gap decreases within some traditional territories, such as India, there will be an increase to outsource to emerging markets that are not currently being explored.

ValueNotes: Are there any specific services / processes that will see significant growth in outsourcing?

Julia: I believe the Contract Research Organization (CRO) Industry has the potential to see significant growth if they are able to differentiate themselves from the pack. The Healthcare Industry is under extreme cost pressures and companies are looking for CROs to help them get pharmaceuticals, device and consumer products out to the market faster at the lowest possible cost. Additionally, Contract Manufacturing may also see significant growth in pursuit of lower costs.

ValueNotes:  What do you think will be the effect of President Obama's government on offshoring?

Julia: President Obama's philosophy or opinion on offshoring does not make much sense in this global economy. Free trade in a global market is essential for the United States and all nations to prosper. In order to remain competitive in a global market and for companies to manage their costs, offshoring is a critical component to cost reduction and is vital to the success of a global organization. Offshoring is no longer a nice to have; it has become the lifeline to a global economy.

ValueNotes: Do you think the recent terrorist attacks in Bombay would have an affect on offshoring to India? How has this changed the perception of India as an outsourcing destination?

Julia: The terrorist attacks in India had a very minimal effect on outsourcing and very short-term. The initial impact was great but it was very short lived.  Companies will still pursue India as a favorable destination for offshoring because of its large patient/subject population, low cost, skilled workforce and growing IT infrastructure.