Trends in Software Outsourcing: Best Practices
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Transcript of Trends in Software Outsourcing: Best Practices
Trends in Software OutsourcingBest Practices
www.softheme.com
Table of Contents Selecting a vendor
critical factors business expectations relationship control success / failure
Applying effective outsourcing strategyfocusing on outcomes monitoring the development cycle
Managing risksrisk categories risks mitigations
Signing service level agreementsgoals & objectives performance measurement processes & practices
knowledge/data transfer technology & services evolution
client-vendor relationships
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Selecting a vendor Accounting for the most critical factors:
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finance technology process operations
people business
part of the project in the
vendor's portfolio
investing in training,
case studies, experience
quality control, development
cycle
management &
communication
selection criteria,
labor pool
flexibility to change
reflecting customers’
business needs and processes
Selecting a vendor Setting business expectations:
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goals
values
background
getting to know your partner
Selecting a vendor Setting business expectations:
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costs
risks
qualitylocation
experience dedication
Understanding the combination of:
Selecting a vendor Keeping control of the relationship:
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participate:knowledge transfer,
trainingmanage:
control
taking responsibility for the project
communicate:provide feedback,
deal with issues
Selecting a vendor Measuring success, handling failures:
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saved costs
new tools, functionality, performance
processes function without major involvement of the management team
decreased time for management/communication
customer satisfaction
Applying effective outsourcing strategy Focusing on outcomes:
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on the client side:
on the provider side:
on both sides:
• specifying business problem
• providing necessary explanations
• suggesting technology, architecture
• managing the development cycle
• feedback• quality assessment• process improvements
Applying effective outsourcing strategy Monitoring the development cycle:
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tracking the status via: reports reviews meetings
receiving end-user feedback
converting it into new requirements / bug reports
Managing risks
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Managing risks Risk categories:
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• IPR, contract• costs
• quality, performance
• core product knowledge
operationalstrategic
legalfinancial
Managing risks Risks mitigations:
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Utilize technology: tools for tracking communication automated tools for tracking task tools for measuring
progress/performance
Manage knowledgebase: technical documentation knowledge transfer within the
teams
Control the process: make sure the processes are integrated communicate regularly maintain formal specifications receive and analyze reports conduct reviews / provide feedback
Measure the deliverables: quality timeliness skills and capabilities
Adjust the contract: test possible scenarios introduce incentives and penalties share risks and rewards
utilizecontrol
risksadjust
managemeasure
Signing service level agreement Focusing on outsourcing goals and objectives:
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all vital terms and conditions should be reflected in the Service Level Agreement
take into account known issues
be clear on the assumptions you are making
Signing service level agreement Measuring performance:
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agree on a clear performance metrics choose pricing model which reflects
performance improvement introduce incentives for ideas and solutions
which result in performance improvements include penalties
Defining processes and practices:
make sure the processes and procedures are flexible enough business specific aspects should be taken into account when
defining processes
Signing service level agreement Knowledge and product data transfer aspect:
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the mitigation strategy in case the team member leaves should be in place the transition strategy in case of switching to another provider:
data relocation
procedures
code stored on
the client side
technology corresponds the project
tasks
documented code
security aspect: access to logs, backup policies modular access to the project data access levels defined for every team member
architecture addresses
functional and non-functional requirements
Signing service level agreement Evolution of technology and services:
new technologies on the market a need in newer equipment training on new technology trends reviewing the pricing model
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Signing service level agreement Client-vendor relationships:
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spread the responsibility
possible changes and improvements on both sides
additional costs : training meetings
effective collaboration model: onsite and offsite team structure
both parties should be responsible for risks within their control
onsite team
offsite team
equipment need in new services
Thank you!
2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions
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Questions??? → [email protected]