Market Drivers

IT departments are understaffed, overburdened and often forced to go outside the organization for help with custom application development and maintenance. Tough budgetary pressures in a challenging economy are driving most IT organizations to choose an outsourcing partner based on their lower-cost offerings and ability to leverage specific technologies.

Fewer than Half Believe Their Outsourced Staff Understands their Business

But the results are often underwhelming. And enterprise buyers at large in US organizations are finding gaps in strategic skills such as understanding of the business and innovation. According to an outsourcing study by Hfs Research, only 43% of buyers feel their non-US staff understands their business, versus the 88% who believe this about their local staff.

There are several reasons why offshoring IT is a less than ideal approach, particularly for business-critical solutions:

  • Some jobs cannot be performed effectively without real-time communications. Developing solutions using the Agile methodology takes constant collaboration – ideally face to face
  • Teams are traditionally assembled according to individual credentials. This can get in the way of working as a team, which ultimately compromises time to delivery and quality

Catalyst makes onshoring IT services work by using a proprietary Moneyball-like approach to assembling teams of highly skilled and collaborative resources. This enables us to provide onshore IT teams that work well together and fit in seamlessly with our clients’ corporate cultures – a fit that ensures the development of relationships needed to execute Agile projects, and that ensures the correct business outcome.

We’ve found patterns of communication to be the most important predictor of a team’s success. Not only that, but they are as significant as all the other factors–individual intelligence, personality, skill, and the substance of discussions–combined.

- Alex “Sandy” Pentland, director, MIT Human Dynamics Laboratory and the MIT Media Lab Entrepreneurship Program, Harvard Business Review