Transcript DataArt - Software Outsourcing Company

Alexei Miller
Director of Project Management
[email protected]
DataArt
Precision and Art in Technology Solutions
July 16, 2015
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Alexei Miller
What is DataArt
Director of Project Management
[email protected]
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Software Outsourcing
 Application engineering,
architecture, design and
QA
 R&D
 Support and maintenance
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Focus on Small and Mediumsize businesses
Founder and sponsor of
OOBP.org – a non-profit
community studying best
practices in Outsourcing for
SMBs
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Alexei Miller
Outsourcing for large and small firms
Director of Project Management
[email protected]
Small and
medium-size
companies
Large, formal companies
Responsibility to select a vendor
CEO/Founder
CIO
Level of formalization and suitability for formal
QA systems (CMM, ISO)
Low
High
Vendor relations
Few and personal
Many and formal
Preferred vendor’s size
Prefer smaller vendors
Need vendors capable to provide large volumes
Acceptance criteria
Results and impressions
Contract specs
Primary protection from non-performance
Relations
Legal contract. Expensive consultants.
Awareness of marketplace
Relatively low (based on few
personal connections)
High and formal (numerous vendor
presentations)
Communication preference
Personal and direct
Formal
Proffered methodology
Agile, open for suggestions
Formal processes (RUP-like)
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Alexei Miller
Director of Project Management
[email protected]
Drivers
• Concentrate on core competence
- free up management bandwidth
• Pay per use (avoid infrastructure
expenses)
• Reduce cost
• Access to global resources
Offshoring dynamics
Inhibitors
• Low awareness of benefits
• Little practical experience
• Fear of loosing control
• Internal resistance
• Problems measuring value
• Perception of high risks
• Lack of experienced staff
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Alexei Miller
Director of Project Management
[email protected]
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Myths
Very low price is the winner
People-independent processes
‘Quality guarantee’ systems
Consultants and public research
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Alexei Miller
Contents
Director of Project Management
[email protected]
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Getting started with outsourcing
Vendor selection and building
relations
Process
Quality
Troubleshooting
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Alexei Miller
Director of Project Management
[email protected]
Getting started
1. What to outsource?
2. Define the scope and expected benefits
3. Sell the concept internally
4. Allocate internal resources
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Alexei Miller
Your options
Director of Project Management
[email protected]
Process: Who is in the driver seat?
Set the goals with
vendor and have him
do the project
the way he knows
OR
Have vendor adapt
to your existing
processes
and infrastructure
Short-term
• Fixed-scope, fixed cost
• T&M (on-demand)
Strategic
• Dedicated teams
• Team completion / staff augmentation
• Build and Transfer (BAT)
• Joint venture
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Alexei Miller
Director of Project Management
[email protected]
Selecting vendor
1. Find candidates, solicit offers
– Ask around (network, trade groups,
internet)
– RFIs – use them, but don’t rely on them
– Vendor size to consider
2. Choose what’s best for you
– Listen to them: specific expertise,
examples, references
– Make them work: What investment are
they ready to make
– Talk to them: synergy with stakeholders
– See them: visit development facility
– Try them: competitive pilots
3. Keep your options open
– Invest in long-term relationships but short
projects
– Periodic due diligence
– Rare, but systematic competition analysis
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Alexei Miller
Director of Project Management
[email protected]
Building relations
• High cost of engagement - high stakes
• Understand vendor’s business
– Human capital competition
– Resource allocation issues
– High cost of sales
• Allocate time for relationship management
• Share goals
• Don’t save on knowledge transfer and education
• Make it challenging
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Alexei Miller
Director of Project Management
[email protected]
Process
• Project management: use any standard, just
watch for complications of ‘remote’ team
– Communications, communications,
communications
– Clear milestones, deliverables and
acceptance procedures
• Metrics, incentives and penalties
• Take interest in what’s going on in technology
• Allocate time and be patient
– On-going knowledge transfer
– High-level review sessions with vendor’s
management
– Show trust and appreciation
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Alexei Miller
Quality
Director of Project Management
[email protected]
Compliance
• Formal specs, style sheets, test
cases, design templates,
performance benchmarks
Perception
• “This is no good”, “quality is too
low”, ”I do not like the way it
looks”, “This developer is
arrogant”
Ensure compliance, manage
perception
• Assume less, articulate more
• Invest time into defining
“common sense” criteria
• Formalization vs. costs
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Alexei Miller
Director of Project Management
[email protected]
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Watch for …
Hidden technical challenges
Internal sabotage
Loss of project focus
Arguments over quality level
Unreasonable charges
‘bugs vs. enhancements’ arguments
Be careful with sub-contractors
Communication breakdowns
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Alexei Miller
Director of Project Management
[email protected]
Troubleshooting
What if things went wrong?
• It is not contracts that save projects
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Alexei Miller
Director of Project Management
[email protected]
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Resources
OOBP.org - association of SMBs sharing best practices in offshore outsourcing;
Trade organizations – associations of offshore companies (NASSCOM, RUSSOFT, Fort-Ross)
Research on the internet (be careful!)
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