Let me start with an example where the scale of a company is the task. In top leadership, my observation in the UK market is that interim management helps to ensure that complacency does not seep in. For instance, say a CIO will exactly know that when he has a limited time to bring in more efficiency – be it operational excellence or bottom-line revenue, it helps in breaking the power gap.

In the rapidly changing business landscape, organizations are often faced with unexpected challenges that require immediate, expert intervention. Interim management has emerged as a strategic solution for businesses navigating transitions, transformations, or crises. For C-suite leaders, understanding when and why to engage interim management can be crucial for sustained success. I I spoke with some of my industry friends in the UK and I hear that the UK interim management market is valued at over £2 billion annually.

The Strategic Value of Interim Management

When we think of interim management, it’s important to recognize that it transcends the idea of simply filling a temporary vacancy. Instead, it involves injecting seasoned leadership precisely when organizations need it the most. Research indicates that a key percentage of  of senior directors prefer interim managers over traditional consultants, citing the flexibility, speed, and effectiveness that interim managers bring to the table. This preference speaks volumes; it underscores the immediate impact and hands-on expertise that interim managers can provide, which can be especially vital in times of change or uncertainty.

Identifying the Right Time for Interim Management

So, when exactly should your business consider bringing in interim management? Let’s explore a few scenarios.

Transformational Change

For instance, a company needs someone to build an AI strategy for a company. In this situation companies rather than hiring a permanent role, may want to bring in a key stakeholder to enable the goal and then look at extending the tenure. Organizations often find themselves undergoing significant transformations, whether they are digital, operational, or cultural. In such cases, an interim manager can bring specialized expertise and an outside perspective that can prove invaluable. For example, consider Vanquis Bank, where an interim CTO successfully led a major digital transformation, implementing a new operating model that enhanced the bank’s technology delivery capabilities. This kind of leadership can be the difference between a smooth transition and one fraught with challenges.

Crisis Management

In times of crisis, the need for experienced leadership becomes even more pronounced. Interim managers excel in these situations because they can provide immediate, focused leadership without the encumbrance of internal politics. Their objectivity allows them to make tough decisions swiftly and effectively. The interim management market, growing at a CAGR of 6.7% from 2021 to 2025, reflects this demand, particularly as organizations seek expert crisis management.

Addressing Skill Gaps

When organizations experience immediate leadership gaps in critical areas—be it finance, operations, or technology—interim managers can step in and fill those voids. For instance, the finance sector accounts for 55% of current live interim roles, highlighting the demand for specialized expertise in areas like cash flow management and financial planning. This rapid response not only stabilizes operations but also ensures that the organization remains on track to meet its objectives.

Strategic Project Implementation

For specific strategic initiatives that require specialized leadership, interim managers bring a level of focus and dedication that can drive success. A notable example can be found in the logistics sector, where an interim operational manager successfully led a global expansion and operational alignment project for a Fortune 500 company. This illustrates how interim management can propel strategic initiatives that may otherwise stall due to a lack of expertise or resources.

The Underlying Benefits of Interim Management

The effectiveness of interim management is rooted in several compelling advantages. Firstly, interim managers typically possess extensive experience, allowing them to make an immediate impact upon arrival. Unlike traditional hires or consultants, they offer direct operational involvement and hands-on expertise, resulting in cost-effective solutions compared to long-term executive hires or consulting engagements. Moreover, interim managers excel at driving change. Their objectivity and fresh perspectives enable them to navigate complex challenges without the biases that can sometimes hinder internal teams. Their focus is solely on delivering agreed-upon objectives, which often leads to faster turnaround times and more efficient problem-solving. Another significant benefit is the knowledge transfer that occurs during interim engagements. These leaders do not merely solve immediate problems; they contribute to long-term organizational development by mentoring internal staff and embedding sustainable processes. This dual focus on immediate results and future capability-building makes interim management a strategic investment.

The Modern Interim Management Landscape

The landscape of interim management has evolved significantly in recent years, particularly in response to global challenges. Different sectors exhibit varying needs for interim management. For instance, the financial services sector is increasingly focusing on regulatory compliance and digital transformation, while manufacturing industries are emphasizing sustainability and digitalization. Additionally, changing work patterns have influenced interim management roles. Recent studies indicate that modern interim managers are spending more time on-site—an average of 3.5 days per week, up from 2.5 days. This shift suggests a trend toward deeper integration with client organizations, allowing interim leaders to become more embedded in the operational fabric of the business.

Strategic Considerations for C-Suite Leaders

When considering interim management, several strategic factors should be top of mind for C-suite leaders. Firstly, it is essential to set clear objectives. Define specific goals and deliverables for the interim manager, establish measurable success criteria, and create realistic timeframes for achievement. This clarity will enable both parties to align on expectations from the outset. Cultural fit is another critical consideration. The interim manager’s leadership style should resonate with the organization’s culture to ensure smooth collaboration and integration. Planning for effective knowledge transfer is equally important, as it lays the groundwork for sustained success once the interim manager departs. Finally, leaders should actively manage risk. 

In the UK, issues such as compliance with regulations (notably IR35) must be considered. Planning for succession and ensuring the protection of intellectual property and confidential information are also vital components of a successful interim management strategy.

Key Takeaways for Global Leaders

As we delve into the implications of interim management, it becomes clear that this approach offers significant strategic advantages:

1. Timing is Crucial: The need for interim management is most pronounced during periods of transformational change, crisis, or when specific expertise is required for critical projects.
2. Value Proposition: The combination of immediate impact, objective perspective, and cost-effectiveness makes interim management an attractive solution for pressing business challenges.
3. Understanding Trends: Awareness of sector-specific demands and evolving work patterns can aid leaders in making informed decisions regarding the deployment of interim management.
4. Implementation Success: Clear objectives, cultural integration, and robust risk management strategies are essential for successful interim management engagements.

Looking Ahead —

As business environments become increasingly complex and the pace of change accelerates, interim management will continue to emerge as a strategic tool for organizational success. For C-suite leaders, recognizing when to engage interim management and implementing it effectively within their organizational context is crucial. The evidence is compelling: when properly deployed, interim management provides a powerful solution for organizations facing critical challenges or opportunities. 

I recall a quote by someone , “It’s not just about filling a gap; it’s about bringing in expertise that can transform our business while building internal capabilities for the future.” In this ever-evolving landscape, interim management stands as a beacon of adaptability and excellence—an essential resource for leaders aiming to navigate the complexities of modern business with confidence.

When picturing the relationship between the enterprise and the Software-as-a-Service (SaaS) business model, I imagine an evolutionary process that can be divided into three main stages. The first let’s call ‘The Comfort Zone’; the second ‘The Enlightenment’; and the final stage ‘The Re-Assessment’. Once we examine these we can then decide upon the right course of action when choosing how to adapt to the IT demands of the enterprise.

The Comfort Zone

First let’s look at the enterprise company. Typically it may be a bit strapped for resources and possibly even struggling to find the staff to assign to some of their most mission-critical IT projects in one of their departments.

And then there’s the SaaS business model – now a major trend among enterprise corporations. Most major SaaS players, such as Salesforce.com provide some form of web-based application functionality. Also known as on-demand, these guys charge their customers on a per-use subscription basis. And it’s a particularly attractive and efficient alternative to on-premises applications because it reduces the significant risks and costs of CRM implementation (and we’re all aware of the success rates of most CRM projects).

The major advantage of SaaS is that it can exist within the enterprise – similar to an ICBM missile silo within a military network – where the silo remains completely self-contained. The great thing about SaaS, from the enterprise’s perspective, is that it allows the business people to operate independently from IT, typically requiring only minimal input from them. It also makes life much easier for the CFO – allowing finance to make on-going payments rather than have to allocate and then justify a full-blown investment.

So SaaS really offers a ‘comfort zone’ solution for both the business and IT departments. SaaS offers the department’s user group a fully-functioning solution in quick time, while freeing IT from the worry and cost of having to implement a large on-premises IT project, or build the application in-house. A typical example of such a success is Salesforce.com, where a rapidly implemented sales force automation solution makes for happy sales staff and company executives alike. A win-win solution for all involved – for the time being. This leads us on to our next stage, ‘The Enlightenment’.

The Enlightenment

One of the great barriers to maximizing the full value of SaaS comes from the very reason the enterprise adopted it in the first place. The ‘silo’ effect means that the on-demand application remains effectively disconnected from the other applications that run in the enterprise, with the result that its information remains compartmentalized.

In the case of on-demand CRM solutions, SaaS software running solo can be viewed as a set-back to the process-driven enterprise, working in opposition to the goals of architects and business process analysts. And as a result, the enterprise, while happy with the fact that their mission-critical tasks are being performed, now begins to grumble.

Add to this the following issues and a re-assessment become almost inevitable:

1. The lack of automation that comes from being disconnected from the enterprise’s in-house applications means more data duplication, more manual entry and more human errors. You can’t even imagine how much enterprises are spending on these problems today!
2. As the on-demand application acquires increasing quantities and quality of information, other departments will want to buy-in and enrich their own applications with this data.
3. With the on-demand application becoming further enriched, your CIO will eventually want to apply some ownership to the system for security’s sake. Whereas in ‘The Comfort Zone’ it was more convenient not to own the system, now the situation becomes reversed.
4. And: With continued growth of subscribers to your on-demand application, eventually the enterprise will want to re-evaluate the license cost structure and subscription fees.

The Re-assessment of SaaS applications

Our enterprise now knows both the benefits and drawbacks of SaaS applications. Essentially the enterprise now needs to transform their SaaS application from a department-level tactical system to an enterprise-level solution to eliminate the duplicated work and manual processes, and to find a way of milking more value from their application and creating a more favorable cost-structure for the long-term.

The enterprise is essentially faced with two choices:

• Find an alternative solution to their on-demand application. This would normally mean going back to square one, with an on-premises solution or home-grown application, and losing all the appealing benefits of SaaS. This is a definite no-go.

Or:

• Somehow, bring their on-demand application more into the enterprise and integrate it with their existing applications.

The Value of Integration

I do believe that integration is really where the greatest value lies. Integration ties your on-demand solutions into your existing business infrastructure and enables both your on-premises and on-demand applications to work together in a way that gives them significantly more power and scope.

With integration, companies can multiply the power and reach of their Salesforce.com, SAP, Oracle JD Edwards, Movex, and other applications, allowing the enterprise to efficiently and automatically share and update information company wide.

Comprehensive information sharing gives both employees and management a fuller and more accurate picture of their overall business. Such a view allows management to make better business decisions, be more responsive to the customer’s needs, and get more efficiency and return out of their business transactions.

Integration Infrastructure vs. Custom Code

A word about custom code. The advantages of integration infrastructure over custom code integration solutions are clear. Custom coding is inherently more risky since it’s a one-off that hasn’t been tested in multiple scenarios. It’s also man-dependent: If you loose your coder after a year on the job, your project may be lost. While custom coding can seem an attractive alternative for some integration projects, the process is also time-consuming and inflexible when changes to the original architecture are needed. Few enterprises have the luxury to wait for their custom-code project while the market continues to evolve and move on. And when changes are required to your business process, or new applications must be added, many of the existing coding threads become redundant and need to be re-written.

Conclusion

So while I recognize that “integration” is a word that may scare many SaaS users and IT staff, the benefits far outweigh the potential fears.

Like in any industry, there will always be vendors out there willing to promise you integration at the push of a button, and who make it appear far simpler than it may be in reality.

The important thing is to choose a vendor that has the project experience to bring to the table a productive tool-set and powerful technology stack that can handle any integration scenario – whether straight-forward or more complex. Remember – the last thing you want or need is to start introducing custom coders and extensive consultancy that will push off your ROI and make you wonder why you didn’t stick with the more expensive and time-consuming on-premises solution. Integration remains by far the more cost-effective and practical solution for the enterprise. And when undertaken correctly, will bring your enterprise – SaaS relationship to the next level. Just make sure to integrate with a partner or vendor who really knows how to deliver on their promises!

About the author: A Swiss based Board-level professional, Avigdor Luttinger helps technology providers achieve their business objectives by leveraging their core competencies and the market opportunities; he is one of the founders of Magic Software Enterprises, and continues to dedicate a significant amount of his time to the company, where he functions as Vice President of Corporate Strategy. With over 25 years of experience and recognized expertise in the software industry, Luttinger is a frequent speaker and contributor at industry conferences and publications, and is also Executive Consultant at APL Technologies & Management Ltd. Luttinger currently covers Cloud Computing, Mashup technology, High Performance Workplace, Application Platforms, BPM and Integration. He holds an MBA from INSEAD in France and M.S. in computer sciences from the University of Lyon.

View Avigdor’s short bio

Outsourcing and offshoring projects: It is autumn; we are in the Indian city of Pune. Twenty Indian project managers, business analysts and software engineers have gathered in a training room. They want to learn how they can successfully bring the cooperation with a customer whose team is distributed across Germany and the United States back on track. At the moment, however, every single one of them is frustrated. The global programme, in which they work, is destined for disaster.

Uncertainty adds to frustration

Collaboration with that client began last spring with such vigour and enthusiasm. But now everything is just sluggish. The programme manager has already been replaced, and the projects associated with the programme are being rescheduled. Uncertainty adds to frustration. The overall mood is strained, emails are responded to in monosyllables and conference calls are cancelled at short notice. The Indian team members ask: how can the transfer of know-how take place under such conditions? How are we to work cooperatively with the customer at all?

For their company, a world-renowned Indian IT service provider, a lot is at stake. The programme has a volume worth of almost twenty million dollars. An early stop would not only mean a financial loss. It would also damage the reputation of the company, which, of course, would be expensive to repair.

After lengthy evaluations, considerations and due diligence, the client, a multinational pharmaceutical company, has decided to finally outsource its core applications to the Indian company. Up to now, the pharma company has been buying software development services from another vendor in India. These included a few non-critical applications and databases in a pure offshoring model. But this new, comprehensive programme involves the heart of the company’s IT.

For many of the pharma company’s IT staff the core applications are “their babies”. The company’s executive board, above all the CIO and the CFO, have decided that it is time to entrust this now grown-up child into foreign hands. Their objective is to save costs and, at the same time, take a technological leap forward. This can be achieved by not only transferring know-how to the new Indian partner, but also by systematically organising a reverse transfer of technology, processes, best practices and skills.

At the training in Pune, I ask the Indian team to form small working groups and ask them to write down, in an unadorned fashion, where the shoe pinches. Here are the results:

• “We get the feeling that the client teams in Germany and the USA are not treating us at peer level.”
• “Our client does not share the big picture with us. But we need to know it in order to deliver the work we committed to.”
• “We are never clear about their expectations.”
• “We’ve been told several times to be more creative and self-driven. But when we become proactive, our colleagues in Germany and the USA do not welcome it.”
• “They don’t have confidence in our capabilities.”
• “It is difficult for us to understand their accent in the English language.”
• “They seem to value time and deadlines above everything else!”

Ten days later I meet the customer team in Frankfurt (Germany) and a week later the one in Cambridge, Massachusetts, United States. These teams participate in the same training, but with a reverse angle. How do the customer teams experience the cooperation with their new Indian colleagues? What do they find difficult? Where do they need help?

Their answers are as sobering as those the Indian team gave:

• “Our Indian colleagues seek approval from their management for everything we ask of them.”
• “Since we started working with the Indian service provider, micro management at our end has grown considerably!” · “The Indian team only delivers what was specified as a requirement. There is no thinking beyond that boundary.”
• “It’s bizarre: when we meet with the Indian team to discuss progress, only one of them talks to us. The other members of the Indian team sit, listen and nod approvingly.”
• “We have different expectations of when a piece of work is considered finished.”
• “I guess their English grammar is impeccable. But it is really difficult to understand spoken Indian English.”
• “Our Indian colleagues usually meet deadlines but the quality is often poor.”

Three dominant, recurring patterns

When reading these quotes, one might conclude that outsourcing to India was generally not a good idea. In those twenty years since I have been involved with outsourcing and offshoring projects to India, I have come to realise that there are three dominant, recurring patterns.

In the first pattern, a package of activities is curated to prepare both employees and the organisation for the upcoming changes. Employees are carefully brought up to par for collaborating with colleagues in India. Such preparation has to address the operational model as well as the intercultural dimension of the partnership.

In the second pattern, the outsourcing company organises merely a handful of informational sessions concerning how outsourcing should ideally be approached, who is responsible for what, and who the outsourcing partner is. What I also see quite often is that presentations are made about where the outsourcing partner is located (e.g. India), that country’s political and economic environment (e.g. democracy, free market) as well as key features pertaining to culture and traditions (e.g. importance of family, national festivities like Holi and Diwali, spicy curries, etc.). Such presentations are often made by staff members from the outsourcing partner company. It is, of course, true that Indians know their own country the best. But, do they have the acquired skills to view the implications of their native culture on professional life through the eyes of a foreigner specifically based on focussed research, deep realisation and extensive experience?

In the third pattern, I’m called in when the roof is already on fire. Outsourcing projects are often approached as a purely technical, organisational and financial undertaking. The underlying assumption is that planning, processes, technology and lower costs will inevitably lead to success. While decision makers involved in this pattern do hear and read that there are also “soft factors”, they decide to address these if and when they become wildly disruptive. In reality, however, inefficiency and dissatisfaction fester for quite some time until they suddenly erupt.

In all three patterns the people involved need to be approached based on their professional, mental and emotional standing with regards to the outsourcing programme. Those who have fears and reservations need to be informed about potential problems and failures. In my experience, it pays off to be totally honest. This is particularly important in the case of India because there is much confusion in the West about certain cultural characteristics in India (e.g. human rights, inequality of the sexes, caste system, etc.). This is the basis to show that you can solve problems which typically arise when outsourcing, and that it is realistically possible to develop a successful cooperation. Fearful pessimism must be paired with realistic optimism.

Outsourcing to a faraway country and deny any cultural difficulties

Those, on the other hand, who only see a fantastic opportunity in outsourcing to a faraway country and deny any cultural difficulties need to be informed of possible problems. They also need to know how to address such problems. This is especially important in the case of India due to the fact that many people from the West easily become enchanted by this country. I have often seen that people actually project many inner desires on India and thus romanticise it – even in a professional context. Euphoric optimism must be paired with informed realism.

And, finally, it must be made clear to both groups that neither active nor passive sabotage of the project will be tolerated.

The case being presented above belongs to the third pattern: fire in the roof. I was called by the pharma company to develop a curriculum for intercultural competence. I trained hundreds of employees in Germany, the United States and India, and supported the change management team at various levels.

It is a truism that many outsourcing projects nowadays are spread across multiple geographies and are virtually organised. But regardless of whether a project team is globally distributed or sits in a building just around the corner, it has become rare that all team members belong to the same ethnic, national or cultural group. Multiculturalism has become the norm, and so has the demand for intercultural competence.

Although outsourcing and offshoring have matured over the past 20 years or so, program and project managers from North America and Western Europe still struggle to appreciate their Indian colleagues’ approach to work. Reciprocally, Indian team members often feel disengaged when working with their counterparts in the West.

When, on the one hand, companies and people from India and, on the other, Europe or the United States cooperate, there will usually be intercultural conflicts. In most cases that has to do with one of the following five dimensions:

1. Hierarchy

One of the first things that Western Europeans and North Americans experience when cooperating with teams in India is the importance that seniority, status, and hierarchical order enjoy in India. A manager’s door is not always open, Indian employees stand up when a boss or client enters the room, and a team member without leadership role refrains from expressing contradiction to a leader’s statements. Still today, the heritage of the caste system subliminally influences thought and behaviour.

2. Leadership

Many people from the West learn the hard way that the leadership style common in Europe and North America (such as involving the team in decision-making), is not shared by all cultures around the world. In Germany and the USA you apply a participative style to managing employees. The individual is expected and expects to assume far-reaching autonomy. In India, however, many managers and employees alike prefer a more authoritarian style.

3. Communication

In most cases, I know the person from the West feels that he or she communicates sufficiently with colleagues in India. Anything more detailed would be leading up to cumbersome micro-management! The person from India, however, gets a creeping feeling that important information is being withheld. He or she feels as if they were at the bottom of the “food chain of communication”.

4. Time management

In Indian mythology there is a concept which suggests that your soul has a time budget of 311 trillion years to realise what it has been destined for. Also, there is the widespread notion that every soul lives through numerous incarnations on Earth. Even though individuals in India might not remind themselves of this concept in everyday life, its mythological power has an impact on the way work is approached. Depending on a situation’s context the individual may award spiritual fulfilment more importance than schedules and technical perfection. In most industrialised countries in the West, on the other hand, behaviour is moulded by Abrahamic mythology.

An individual has limited time at hand (one incarnation), and time is perceived by many to be a limited resource. Depending on a situation’s context, adherence to deadlines and delivery of perfect work may be valued more than oneness with creation!

5. Quality assurance

There is no absolute measurement for quality. Rather, it always refers to a given context and certain conditions therein. The benchmark for quality is set rather high in Western industrialised nations. People and corporations live in a largely well-functioning and at times luxurious environment thanks to rich financial means. Countries, however, which are only at the beginning or in the middle of their industrialisation refer to a standard of quality that is subjectively good, but poor from an industrialised or economically almost saturated viewpoint. These different perspectives have a deep impact on what kind of results engineers strive for.

Of course, everyday life in big metropolitan cities located in India is becoming increasingly more modern and progressive. More and more highly educated and far-travelled Indian citizens share values characterized by openness to the world and critical distance to traditional social norms. However, the majority of the approximately 1.2 billion Indians continue to adhere to traditional values and customs. With good reason: their cultural identity is based on a history of civilisation reaching as far back as at least 5,000 years.

This article was first published in Outsource #36.

About the Author:  Waseem Hussain is the Founder & CEO of a services company with a specialization on business with India. Before, he was the business manager of a globally operating outsourcing company, after heading a joint venture between a Swiss and an Indian software development company. His key strengths are quickly grasping the clients’ situation, crafting executable strategies and implementing steps towards success.