Software L&T Institute of Project Management Uses Palisade’s Risk Analysis Software
The Larsen & Toubro Limited (L&T) Institute of Project Management, a center of excellence in project management, has developed a methodology to enable service providers in the Indian engineering outsourcing industry to determine risks that impact their ability to accurately define project scope and schedule.
Mumbai/India – The L&T Institute used @RISK, Palisade’s Monte Carlo simulation tool, for this study. Using this approach, service providers can accurately determine project scope, schedules and therefore delivery at the start of their customer projects.
Over the last 20 years, the Indian engineering outsourcing industry has established itself as a provider of reliable services. However during this time, the complexity of software technologies has grown along with customer expectations—greatly increasing the risks related to successful project development and execution, which left unchecked, could significantly impact the growth and reputation of the engineering outsourcing industry.
Uncertainties Fuel Risks
Aside from the market uncertainties emanating from political, economic, social, regulatory and environmental factors, there are many sources of uncertainty that affect service providers in the engineering outsourcing industry. They include technology-induced risk factors, and relationships between engineering outsourcing teams and customers due to a cultural mismatch or lack of synergy between expectations of sales and delivery teams. People interaction and processes also create uncertainty caused by personal aspects of knowledge workers (e.g. their drivers and motivations), organizational structures of service providers and customers, trust between teams, continuous on-boarding and attrition of personnel and the like. Furthermore, gaps in technical understanding and alignment of project objectives across outsourcing and customer teams also add to uncertainty.
These uncertainties give rise to a combination of project scope and schedule risks during execution that greatly impact the successful delivery of customer assignments and in turn the customer satisfaction delivered by engineering outsourcing service providers.