MASTER’S NOTEBOOK
Consulting in an Outsourcing
Environment … Collaboration Is the Key
Mani Lakshminarayanan
Chair of the ASA Committee on Applied Statisticians
W
e are in an era when news headlines carry such ominous In an offshore outsourcing environment, there are two natural
phrases as “Wall Street Meltdown,” “Economic barriers that need to be overcome for a successful collaborative con-
Downturn,” “Industry Failures,” “Banks Collapse,” and sultation: time difference and language. Time differences are typi-
“$700 Billion Bailout.” With the economy affecting every industry, cally overcome by scheduling regular meetings early in the morning
it is expected that businesses will cut costs through attrition, reduc- or late in the evening. With regard to language differences, there
ing R&D, and even reducing the areas of research interest. exists a steep learning curve for both sides before a smooth col-
With cost reduction being the main issue, it is unavoidable for laborative tone can be established. Status reports and other proj-
industry to look beyond the Atlantic Ocean for outsourcing ect meetings with colleagues from countries such as Japan could
opportunities. There are many reasons for offshoring, but the provide interesting experiences. According to my experience, one
most prominent seems to be cost-saving. Those savings can should not be surprised about a potential time lag before receiving
be enhanced further if potential communication problems, a response during a conference call. It is not unusual for the team
such as the lack of daily face time or differences in language, on the other end to have an interpreter translating every ques-
can be foreseen and measures taken to avoid them. tion in real time before the response is given. It is essential
The following was recently published in Harvard to be aware of nonverbal messages so positive signals can be
Business Review: “Today, outsourcing is not just a given and received.
trend; it is an integral part of how smart companies do Many organizations are setting up their statistical units
business. … The concept has matured. It now connotes a in places such as India and China. Though the local talent
strategic relationship between partners, with shared risk and in these countries may be strong in basic science, there will
goals.” And Bill Gates of Microsoft fame has said “Innovative still be a learning curve to contend with before commu-
companies need to look at which things they should do nication reaches a productive level. A collaborative
offshore and what they should do at home.” We, as approach can easily help this transition and mini-
statistical scientists, are faced with readjusting (with mize the behavioral and cultural differences that
continuing education, if needed) our consulting could have a direct impact on the result. As
skills to go with the flow. a collaborator, you can then go beyond the
In this environment, those with a master’s degree approach that is typically carried out (i.e., ship
in statistics would do well to recognize the rewards the project to the contractor, have no interme-
that can result if they develop the necessary skills to diate contact, and wait for the final solution).
be a collaborative consultant in a contract research Collaborative efforts automatically lead
organization (CRO). The same can be said for statisti- us to be part advocate, part reviewer, part crit-
cians in a client organization who may seek consultation ic, and—most importantly—part team member.
from an offshore CRO. In a 2006 presentation, statistician Collaboration also provides an opportunity to be a
Roger Hoerl explained the difference between collaborative con- teacher, especially when you are expected to teach your field
sulting and traditional (contractor-type) consulting. He described of expertise to colleagues or contractors in various offshore locations.
traditional consulting as giving advice and performing technical The initial effort that goes into an outsourced contract is critical to
tasks for others, saying “The project is theirs, not ours.” On the avoiding delays and errors. This effort requires time to establish com-
other hand, he explained collaborative consulting as the statistician munication, understand the project, and develop rapport and respect
functioning as an equal partner. among team members.
Russ Helms, during a presentation he gave at JSM 2008, suc- When organizations are looking to improve efficiency and
cinctly differentiated the two roles. As a collaborator, he said one is cost-effectiveness, it is prudent to expect an outsourcing or off-
expected to work with clients, ask questions, share concerns related shoring strategy as a viable alternative. Though the tendency is to
to the project, share thoughts about why some aspects of the proj- outsource non-core business, companies are exploring outsourcing
ects are working or not working, and diligently provide input into critical projects if time is a factor. In all these areas, statisticians are
possible solutions. As a contractor, one is expected to do the work employed by both client organizations and the outsourcing provid-
and disseminate solutions, without getting involved in intermedi- ers. If you are a statistician in the client organization in charge of
ate discussions. Helms stressed how important communication and a project being outsourced, you will be expected to develop skills
engagement are for a collaborative consultant. Creating an envi- to manage the service providers. The statisticians from both sides
ronment in which both sides can develop a willingness to share of the aisle (client and provider) are expected to develop skills in
information and create a trustworthy relationship is essential to any areas such as negotiation, communication, and project manage-
collaborative consultation. ment while being flexible as business needs change. n
NOVEMBER 2008 AMSTAT NEWS 21
AMSTAT November 08.indd 21 10/24/08 2:28:14 PM
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