DataArt - Software Outsourcing Company by SDbfjB


									         Alexei Miller
Director of Project Management

                Precision and Art in Technology Solutions

                                                  September 11, 2012   1
         Alexei Miller
Director of Project Management
                                                       What is DataArt

                                    Software Outsourcing
                                         Application engineering,
                                          architecture, design and
                                         R&D
                                         Support and maintenance
                                    Focus on Small and Medium-
                                     size businesses
                                    Founder and sponsor of
                            – a non-profit
                                     community studying best
                                     practices in Outsourcing for

                                                         September 11, 2012   2
                Alexei Miller
       Director of Project Management
                                                                Outsourcing for large and small firms

                                                           Small and               Large, formal companies
Responsibility to select a vendor                   CEO/Founder                    CIO

Level of formalization and suitability for formal   Low                            High
QA systems (CMM, ISO)

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   High and formal (numerous vendor
                                                    personal connections)          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
                                                       Offshoring dynamics

   Drivers                               Inhibitors
   • Concentrate on core competence      • Low awareness of benefits
     - free up management bandwidth      • Little practical experience
   • Pay per use (avoid infrastructure   • Fear of loosing control
                                         • Internal resistance
   • Reduce cost
                                         • Problems measuring value
   • Access to global resources
                                         • Perception of high risks
                                         • Lack of experienced staff

                                                                September 11, 2012   4
             Alexei Miller
    Director of Project Management

•    Very low price is the winner
•    People-independent processes
•    ‘Quality guarantee’ systems
•    Consultants and public research

                                       September 11, 2012      5
         Alexei Miller
Director of Project Management

                                    Getting started with outsourcing
                                    Vendor selection and building
                                    Process
                                    Quality
                                    Troubleshooting

                                                                        September 11, 2012   6
         Alexei Miller
Director of Project Management
                                             Getting started

 1. What to outsource?
 2. Define the scope and expected benefits
 3. Sell the concept internally
 4. Allocate internal resources

                                             September 11, 2012   7
         Alexei Miller
Director of Project Management
                                                                               Your options

                                       Process: Who is in the driver seat?

                                    Set the goals with                    Have vendor adapt
                                   vendor and have him       OR            to your existing
                                      do the project                          processes
                                    the way he knows                      and infrastructure

                                 • Fixed-scope, fixed cost
                                 • T&M (on-demand)

                                 • Dedicated teams
                                 • Team completion / staff augmentation
                                 • Build and Transfer (BAT)
                                 • Joint venture

                                                                            September 11, 2012   8
            Alexei Miller
   Director of Project Management
                                                      Selecting vendor

1. Find candidates, solicit offers
      – Ask around (network, trade groups,
      – 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
      – Periodic due diligence
      – Rare, but systematic competition analysis

                                                        September 11, 2012   9
            Alexei Miller
   Director of Project Management
                                                   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

                                                      September 11, 2012   10
              Alexei Miller
     Director of Project Management

• Project management: use any standard, just
  watch for complications of ‘remote’ team
     – 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
     – Show trust and appreciation

                                                   September 11, 2012   11
         Alexei Miller
Director of Project Management

   Compliance                                           Perception
   • Formal specs, style sheets, test                   • “This is no good”, “quality is too
     cases, design templates,                             low”, ”I do not like the way it
     performance benchmarks                               looks”, “This developer is

                                 Ensure compliance, manage
                                 • Assume less, articulate more
                                 • Invest time into defining
                                   “common sense” criteria
                                 • Formalization vs. costs

                                                                                September 11, 2012   12
             Alexei Miller
    Director of Project Management
                                            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

                                        September 11, 2012   13
         Alexei Miller
Director of Project Management

                                 What if things went wrong?
                                 • It is not contracts that save projects

                                                                   September 11, 2012   14
             Alexei Miller
    Director of Project Management

• - 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!)

                                                                         September 11, 2012   15

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