1. Parhaat käytännöt ohjelmistokehityksen ulkoistuksessa Venäjälle Helsinki ICT Week 13.-14.9.2005 Markus Mäkelä Ardin Software

2. (c) Ardin Software 2005 Helsinki ICT Week, September 20052 Contents 1.Offshore engagements 2.How to reach aimed benefits 3.Pricing methods 4.How to choose your partner 5.Ardin Software in brief 6.Scandinavian Group 7.Discussion / questions

3. (c) Ardin Software 2005 Helsinki ICT Week, September 20053 1. Offshore engagements Primary types of financial arrangements 1.Project-based –Spec-proposal-implementation-payment cycle –Requires larger investment on client’s part –Better predictability, less real-time control 2.Relationship-based –SLAs are defined –Variation of T&M payment model –More real-time control, less assurance of final result 3.BOT –Start with either of the above and the cooperation leads into company owning their own business in an offshore location.

4. (c) Ardin Software 2005 Helsinki ICT Week, September 20054 2. How to reach the advantages of outsourcing Starting outsourcing is just like starting any other business relationship. Be transparent and share knowledge in the relationship as much as possible. –The subcontractor will be more dedicated if they know the background and targets for the project. Savings in internal cost are achieved through using more advanced outsourcers –i.e. SMBs can’t afford hiring dumb coders Reaching goals depends also heavily on –Company’s processes in dealing with subcontracting –Maturity on Software or project production processses Outsourcing practices Service buying practices

5. (c) Ardin Software 2005 Helsinki ICT Week, September 20055 3. Pricing methods Fact: hourly price is still the most widely used method of pricing for offshore projects. That is a mistake. Unit (hourly) pricing can only be used together with ‘performance standards’. Fixed-price method is effective for small tasks, but lacks visibility. –There is no such thing as ‘standard’ or ‘average’ performance. –Performance can only be measured for specific group working on a specific type of tasks. Measuring performance is the only practical way to improve predictability –Test projects for fixed-price engagements. –Trials with specific group for T&M.

6. (c) Ardin Software 2005 Helsinki ICT Week, September 20056 4. How to choose your partner First you have to define your own needs. –Create outsourcing strategy. Only then you are ready to start looking for a match to your needs. –SMBs are better served by smaller vendors who can be personal and provide better performance, than by large ones who are seemingly more reliable. –Don’t look for dumb coders but a company with a real knowledge on the subject. Selection process has to be thorough in every way. –Different outsourcing companies have different kinds of strengths in technologies, industry knowledge, etc. –Where, What, How deep, Who? –Audits during selection process are not uncommon. On the contrary serious outsourcing companies welcome that. Self audits are the minimum.

7. (c) Ardin Software 2005 Helsinki ICT Week, September 20057 After the partner is chosen… Start by introducing your company. –It is easy to invite the key personnel for a visit –or a longer stay for the technical persons. Ask questions and answer to your partner’s. –Listen to your chosen partner for work processes. All Ardin’s partners have a long experience and know how to handle most of the situations. All have certified software production processes. Begin first project.

8. (c) Ardin Software 2005 Helsinki ICT Week, September 20058 5. About Ardin Software Oy Ardin Software is a Finnish software development company. Our aim is to help our clients by providing the best possible developers and solutions to suit their needs. We partnership with the best Russian software companies to provide our customers the most suitable solutions to suit their needs. –Our partners have over 500 professionals working for them, mainly in St. Petersburg, Russia. Our customers are highly professional buyers who recognize the quality and are able to materialize profits by effective sourcing. Ardin Software was founded in 2002.

9. (c) Ardin Software 2005 Helsinki ICT Week, September 20059 Ardin Software’s Offering Service offering Benefits High class solutions and quality. Single point of access for all services. Easy face-to-face access to developers. Service provider dependable Finnish company. Benefits High class solutions and quality. Single point of access for all services. Easy face-to-face access to developers. Service provider dependable Finnish company. Competences Managing subcontracting process Project management Vertical knowledge on selected areas. Technological expertise Competences Managing subcontracting process Project management Vertical knowledge on selected areas. Technological expertise Mobile network applications Mobile application development Microsoft technologies Embedded systems Legacy transformation Java & J2EE applications Audio & video processing Software testing System application development Etc. Presales consultancy Tools for managing Subcontracting Process Project management Software development Full development cycle execution. Certified production Processes Deliverables Project deliverable Agreements IPR control

10. (c) Ardin Software 2005 Helsinki ICT Week, September 200510 6. Scandinavian Group The best Russian capabilities at your service Lanit-Tercom –Mobile network device solutions –Telephony systems –Real-time systems / device planning –Legacy transformation Arcadia –Mobile network software solutions –Microsoft Windows Server Systems Antares Software –Mobile and PDA software products and solutions. –Test lab of portal device leading vendors eVelopers –BEA WebLogic –IBM Webshpere –Java-based solutions Soft consult –Geographical Information Systems (GIS) –Telecom operator added value services Akma –Forest industry solutions –Embedded systems

11. (c) Ardin Software 2005 Helsinki ICT Week, September 200511 7. Discussion / questions? 1.Offshore engagements 2.How to reach aimed benefits 3.Pricing methods 4.How to choose your partner 5.Ardin Software in brief 6.Scandinavian Group

12. (c) Ardin Software 2005 Helsinki ICT Week, September 200512 Contact information Ardin Software Oy Teknobulevardi 3-5 01530 Vantaa 09-2517 8326 www.ardinsoftware.fi Markus Mäkelä sales manager markus.makela@ardinsoftware.fi 0400-563 298