Solution Centers: Fresh Data

At TSIA, we have been tracking the evolution of PS delivery models. Over the past five years, embedded PS organizations have continued to modify their delivery strategies to improve profitability and scalability. One of the key tactics some PS organizations are pursuing is the creation of “solution centers.” These are centralized pools of technical resources that are leveraged across multiple engagements in multiple geographies. The image below shows how the sourcing mix for embedded PS organizations has been shifting over the past three years:

I have written two previous blog entries related to solution centers:

Now, TSIA has completed a survey on the practices being employed by companies as they build and optimize these solution centers.

In May, TSIA published the results of 2010 Solution Center Practices survey to member companies that participated in the survey. Now, the readout is available to all TSIA members and can be downloaded by visiting the TSIA web site:

2010 Solution Center Survey Results

The performance data we collected in this survey continues to verify that the use of solution centers improves average project margins for a majority of embedded PS organizations. For this reason, I strongly encourage you to leverage the data now available on the following practices related to managing solution centers:

  1. Financial Model: Are solution centers set up as cost centers or profit centers?
  2. Focal Point: Are solution centers organized by solution, function, or geographic region?
  3. Management: Who is responsible for managing the solution center?
  4. Positioning with Customer: How are solution center resources positioned to the customer?
  5. Location Determination: What are the primary factors when deciding where to locate a solution center?
  6. Actual Location: Where are solution centers typically located? What countries? What states?
  7. Delivery Activities: What delivery activities are solution centers typically responsible for?
  8. Capacity Planning: How is capacity planning driven for solution center resources?
  9. Resource Assignment: How are solution center resources allocated to projects?
  10. Onboarding processes: How many days are allocated to on boarding new solution center hires? Is the onboarding process different for solution center resources?
  11. Billable Utilization Targets: What targets are set for these resources?
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