Right-sourcing Software QA

And Test To Deliver

Business Results

Declan Kavanagh

Insight Test Services

Ireland’s largest & leading specialist software QA,

Test & Validation services provider

Software QA & Test to deliver

business results.

Declan Kavanagh

Provide participants with information

on:– A risk management approach to outsourcing

– Right sourcing a flexible blend of in source, near and far

shore

– Present approaches that can ensure success of a right-

sourcing project

– The importance of being clear on the objectives, being

ready and monitoring

– Selecting a supplier or setting up/managing an internal

operation

“The learning points can be applied to most IT

outsourcing projects”

• Introduction

– Declan & Insight

• Right Sourcing

– Why right source?

– The challenges

– Introducing an approach

• Successful execution of strategy

– Are you ready to right-source?

– Is your supplier Ready ?

– A process

• Managing a supplier

– HR considerations

– Service Level Agreements

– Contracts

• 3rd Party Assistance

– Services worth considering

• Conclusions

– Benefits

– Main messages

Introduction

Declan Kavanagh“26 years in the business”

&

Insight Group

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• Education

– Telecoms & Electronics Eng, Accountancy, MBA

• Current roles

– MD Insight Test Services & Insight Software

– Chairman Softedge systems

• Past

– CEO Accuris (Telco Software)

– Practice Director DMR and FJ Services (Software &

solutions)

– Senior Manager Amdahl (Engineering & Quality-M/F)

– Engineering Manager Trio Tech (Semi conductor Test)

– Test & Engineering Manager Computer Automation

(Mini, Micro, ATE)

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Insight Test Services (Consulting, Managed Services, Training)

Insight Software (Test, Validation & QA management product)

Insight Consulting (Strategic software, process consulting)

Kingston Recruitment (Specialist technology placement)

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Insight work in.

Financial Services-Life Sciences-

Public Services & ICT sectors

Right-Sourcing

“Dynamic Blend of on site, near and far shore”

Analysis Design Development Test UAT Support

What and to what extent ?

Inputs Outputs

Control

•Task

•Activity

•Project

•Function

•Process

•People

•Systems

In Source Near

Shore

Off/Far

Shore

Virtual Centre of Competence

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Strategic

Focus on Core CompetenceGet Outsider View

Standardisation

Sharpen Processes

Tactical

Once Off ProjectAccreditation/Certification

Particular Skills Set

Temporary Scheduling Issue

Specialist Equipment

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Outsource to Third Party Sub Contractor • Get a separate company to test software for you• By project

• Flexibility

Partner With Other Company• Partner with another company to test software for

or with your organisation (may utilise virtual teams)

Organisations Setting Up Centres (Offshoring)• In low cost location

• Owned and operated by parent organisation

• May utilise virtual teams to develop software

Source: Cap Gemini Ernst & Young

Why companies engage in IT Outsourcing:

•To Realise Cost Savings

•Lack of IT Staff

•Lack of Expertise

•To Improve Efficiency

•Get Access to Broader Skills Base

•24 Hour Day

•Deliver a Better Service

•Focus on Core Business

Why companies engage in Outsourcing S/W Testing:

•All of the above

•Independent and Objective

•Expansion of Capability

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What are the Concerns:

• Security/Confidentiality

• Loss of Control/Visibility

• Choosing the Right Partner

• Reliance on Suppliers

Source: Cap Gemini Ernst & Young

What are the Concerns relating to Test:•Knowledge acquisition and maintenance

•Environment consistency

•Loss of Flexibility

•Transition Overhead

Regulatory Compliance (FDA, SOX, Basel, etc)

Positive:

• Cost, Time and Defect reductions

• Service and operation integrated and

transparent

• Enhanced flexibility and responsiveness

to end client

• Reduced fixed cost

Caused by:

•Clarity on shared goals and objectives

•Controlled and well managed transition

•Buy in at all levels

•Readiness for out sourcing

•Clear roles and relationships

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Negative:

• Delivery and Quality un predictable

• Visibility of progress not accurate

• Management effort and overhead

• Rework and duplication

• Loss of flexibility, responsiveness, creativity

Caused by:

•Big bang and over the wall process

•Over focus on contract and SLA

•Poor training and transition

•In experience on both sides

•Cultural differences

•Poor Readiness

BACK to MENUSource ISERC & PhD research

Barriers

& Complexity

Coordination

& Visibility

Communication

& Co-operation

Introduces

Distance

Negatively

Impacts

Cause

Negatively

Impacts

Cause

• Readiness– Process Maturity, Product stability, staff buy in and

expertise

• Relationship development formal and informal

• Management and operational information

• Clear objectives and plan with flexibility to respond to clients, suppliers and market

• Pragmatic service level agreements and management

• Win-Win staff, financials, etc

“Poor performance locally will not necessarily be

solved by having someone else do the job”

Internal or 3rd Party CSF’s

Scheduling Reducing Cycle Times

Cost Control

Access to Skills Lack of Expertise

Improve Efficiency

Not core competence Objectivity/Independence

Improved Quality

Process/Methodology Tighter Control/Metrics

Finding Defects must be a core competency of supplier

• In Source

• Out Source Near

• Out Source Far

Insight experience suggests that over the long

term a blend delivers the best long term value

and minimises risks, the blend adjusts with time

Due Diligence Set Up Transition Ramp Ongoing Ops

Insource Near Shore Far Shore

Time

Insource

Full project

Management Interface

Near ShoreNew product/technology

Far Shore

Right-Sourcing

Strategy

execution

Strategy, Goals & Plan

Stable, Predictable, Delivery

History of control and perf.

Best Practice Process

Technology Complexity

Robust Operational systems

Staff awareness and buy in

Change management

process

Previous experience

Assets & Resources

Local presence

Best Practice Fn & non Fn

Core Competence Demo

Flexible, Responsive &

Pragmatic

Infrastructure & Security

Partner Model

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Due Diligence Set Up Transition Ramp Ongoing Ops

Recommended

Insource

•Mutual due diligence more

effective.

•Delivery while

learning

•Better skills &

relationships

•Drives readiness

Option

Structured process

•Own or suppliers

•Evidence

•Deliverables

focused on process

•More time on

planning and

negotiation

•Cost

Options

To be avoided

•Focus on training

•Big Bang

•Over focus on a

methodology/process

•Over documentation

•No local presence

Due Diligence

Service Delivery

Ramp

Transition

Set Up

Strategy

Delivery

Execution

Mobilisation

Planning

Management Release Control

Information Configuration

Control

Escalation Change

Control

Best Practice Defect Control

Certification Automation

Financial Communications

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Readiness

Level of development Test

Development methodology

Systems and Processes

Quality of Interfaces

Scope and Control

Partnership type

Win-win profit

Supplier

Management

“A partner who relates well to you and your company and understands your business is

essential”

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• Transition V Hiring

• Those remaining (new roles &

Training)

• Employee Laws

• Skills maintenance

• Skills Development

• Selection

• Contracts (New or Old)

• Induction

• Capacity (Normal and Peak)

• Competence (Tech,Process,Mgmt)

• Capability (Fn & Non Fn)

• Deliverables

• Key processes

• Information, Reports & Metrics

• Turn around, Cycle Time, schedules

• Entry/Exit Suspend, Criteria & Acceptance

• Effort estimates & Costs

• Named responsible individuals

• Continuous Improvement Goals

• Partnership Culture

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• Master Contract

• Contract Schedules

• Master Service Level Agreement

– Work Package SOW

– Work Package SLA

3rd Party

Assistance

“Independent and objective”

• Company assessment

– Readiness, Strategy & Plan

• Vendor Evaluation & Selection

– Compliance, Standards, Process

• Vendor Audit

– Prior or during contract

• Company & Supplier Training

– Best Practice

• UAT

– Supplier quality mgmt & UAT

Whether you right source Development,

Test or both

Right-Sourcing

Conclusions and

Summary

• Cost Benefits

– Reduced Overheads

– Economies of Scale

– Economies of centre of competence

– Software Licenses

• Risk mitigation (Blended)

– Structured & controlled process

– Additional Flexibility & Responsiveness

• Improved delivery performance

– Quality, Cycle Times, Information

• Leverage complementary

competencies

• Dynamic right-sourcing blend

– Risk mitigation and confidence

building

• Permanent on site component

– Ownership, Relationship, Process

– In sourced project for rapid results

• Clarity on strategy and goals

– Strategic or Tactical, supplier

alignment

• Importance of Readiness

– Insourced project component

Thanks for your

attention

Any Questions ?

Declan.kavanagh@insight-test.com