Precision and Art in Technology Solutions DataArt Precision and Art in Technology Solutions September 17, 2018

What is DataArt Software Outsourcing Application engineering, architecture, design and QA R&D Support and maintenance Focus on Small and Medium-size businesses Founder and sponsor of OOBP.org – a non-profit community studying best practices in Outsourcing for SMBs September 17, 2018

Outsourcing for large and small firms 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) September 17, 2018

Offshoring dynamics Drivers Inhibitors Concentrate on core competence - free up management bandwidth Pay per use (avoid infrastructure expenses) Reduce cost Access to global resources 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 September 17, 2018

Myths Very low price is the winner People-independent processes ‘Quality guarantee’ systems Consultants and public research September 17, 2018

Contents Getting started with outsourcing Vendor selection and building relations Process Quality Troubleshooting September 17, 2018

Getting started What to outsource? Define the scope and expected benefits Sell the concept internally Allocate internal resources September 17, 2018

Your options Process: Who is in the driver seat? OR Short-term Set the goals with vendor and have him do the project the way he knows 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 September 17, 2018

Selecting vendor Find candidates, solicit offers Ask around (network, trade groups, internet) RFIs – use them, but don’t rely on them Vendor size to consider 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 Keep your options open Invest in long-term relationships but short projects Periodic due diligence Rare, but systematic competition analysis September 17, 2018

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 17, 2018

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 September 17, 2018

Quality 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 September 17, 2018

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 17, 2018

Troubleshooting What if things went wrong? It is not contracts that save projects September 17, 2018

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!) September 17, 2018