1. Webinar Rightsource For More Agility
Diego Lo Giudice, Vice President, Principal Analyst
December 3, Call in at 10:55 a.m. Eastern time
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2. Agenda What’s the Agile ecosystem?
Outsourcing Agile challenges and trends
Making Agile and Lean rightsourcing work

3. SW is the crown Jewel of the 21st Century Digital Business !
Diego – Find new picture – reduce text
Context:
SW is the crown Jewel of the 21st Century Digital Business !
Theme:
Agile and Lean are best way to build crown jewel SW for your enterprise, but to scale, you will need to redefine the ecosystem of resources you need….
How do you source for development and delivery of your
“crown jewels”?

4. Crown jewels are systems of engagement!!
Shorter dev and delivery cycles, feedback,
change, innovation
Stable, long dev and delivery cycles
Source: February 13, 2012, “Mobile Is The New Face Of Engagement” Forrester research

5. The way forward for *ANY* BT application development and delivery organization is to focus on these themes
Quality!
Increased velocity
Collaboration +
Adaptability

6. “There is always a better way to do things, and currently, Agile is the best way!”
WELCOME
Lean and Agile!
Image source: ABC (
Source: February 8, 2012, “Justify Agile With Shorter, Faster Development” Forrester report

7. Data shows quality, change, and speed are top claimed benefits for Agile
Responsiveness to
change
Quality
Speed
Base: 205 IT professionals from organizations that are implementing or have implemented Agile (multiple responses accepted); Source: forthcoming, “How Mature Is Your Agile Adoption?” Forrester report

8. Transforming to Agile and Lean means redefining your environment’s ecosystem
Source: September 4, 2012, “Rightsource Your Agile-Lean Ecosystem” Forrester report

9. Agenda What’s the Agile ecosystem
Outsourcing Agile challenges and trends
Making Agile and Lean rightsourcing work

10. End user challenges with Agile and Lean outsourcing
THESE CAN BECOME SHOWSTOPPERS IF NOT PROPERLY ADDRESSED
Readiness
Transparency
Distributed teams
Scale
Partnering approach
Partner selection
Contracts
Source: September 4, 2012, “Rightsource Your Agile-Lean Ecosystem” Forrester report

11. SI challenges with Agile outsourcing
Some large-scale service providers add Agile to their Chinese menu of services.
Agile represents a major methodology/paradigm shift also for vendors.
Offshore (not just distributed) Agile is difficult to achieve.
The move to “managed services” confuses the ability/need to move to Agile. 11

12. Agility requirements drive domestic outsourcing

13. “Clients are not ready.”
You:
“SIs are not ready.”
SI Not ready
SIs:
“Clients are not ready.”

14. Outsourced number of Agile projects among SIs is growing more slowly than expected
Source: September 4, 2012, “Rightsource Your Agile-Lean Ecosystem” Forrester report

15. IT clients want Agile and need help!
The IT industry has surpassed the TI industry!
Overall adoption of Agile:
37% of tech industry
57% of IT industry
Base: 205 IT professionals from organizations that are implementing or have implemented Agile; Source: forthcoming “How Mature Is Your Agile Adoption?” Forrester report

16. Agenda What’s the Agile ecosystem
Outsourcing Agile challenges and trends
Making Agile and Lean rightsourcing work

17. IT-SUPPLIER ALIGNMENT Business-IT alignment
Forrester — holistic transformation framework to Lean and Agile: IT supplier alignment
IT-SUPPLIER ALIGNMENT
Redefine ADD sourcing strategy.
Adjust partner panel with “Agile suppliers”:
Transformation strategy/executive coaching.
Project-level coaching.
Full outsourcing SIs.
Bring purchasing/legal onboard on Agile values/principles, waterfall versus Agile.
Partnership, trust, transparency
Contracts for waterfall won’t work. Redefine
Organize for distributed Agile.
Review offshoring approach.
Lean
principles
Business-IT alignment
Project portfolio
management
IT-suppliers
AD&D sourcing strategy
alignment
Scrum, XP, Kanban TDD
and organization
practices,
process,
Agile
Tools and technology
Agile ALM
DevOps
Change strategy
Communication
value measures
Source: April 27, 2012, “Embrace Holistic Change To Achieve Agile Results” Forrester report and September 4, 2012, “Rightsource Your Agile-Lean Ecosystem” Forrester report

18. Renew your partner ecosystem for Agile
Agile/Lean
transformation
(BigVisible, Emergn,NLighten, Collabnet, Valtech,
ThoughtWorks)
Agile strategy/road map
Executive/mngt coaching
Scaling strategies
Transformation frameworks
Metrics
Agile/Lean
project coaching
(Construx, Sapient, Bluewolf, Valtech, CollabNet, Ness,
ThoughtWorks)
Outsourcing Agile projects
at scale
(ThoughtWorks,
Ci&T, Cognizant,
Matrix Global, IBM GS, HP, TCS,
Infosys, LuxSoft)
Project coaches (Scrum, Kanban)
Continuous integration/delivery (XP, TDD).
T&M on projects
Agile training
Deliver large-scale projects using Agile
Outsourcing strategy
Scrum/Kanban + CI/CD in near-offshore
Source: September 4, 2012, “Rightsource Your Agile-Lean Ecosystem” Forrester report

19. Be Agile and Lean in your partnership agreements
EVOLVE CONTRACTING AS YOUR AGILE PRACTICES EVOLVE
MANAGED SERVICES AND AGILE
Change the way you construct contracts; Agile and Lean can lower contract risk. T&M is the simplest solution but isn’t good for clients. Fixed price puts too much risk on the vendor. Fixed plus variable pricing works temporarily but won’t scale. Be ready to manage evolutionary contracting as the industry matures and goes from T&M and fixed price to outcome-based.
Source: Susan Atkinson, “Contract Models For Agile And Lean,” CIPS Financial Services Purchasing Forum, April 20, 2011
T&M
contracts
Outcome-based
Fixed-price
contracts
Fixed price +
Variable
Fixed sprint
Evolutionary contracting*

20. In outsourcing, contracts do drive behavior but . . .
If both you and the supplier are really bought in to Agile values and principles you MUST be:
TRANSPARENT: Agile forces continuous feedback and transparency across all stakeholders.
TRUE PARTNERSHIP AND TRUST: Change in due course is welcome, but should not be abused. Both win, both loose.
SLAs CHANGE: Deliverables and milestones are working SW, not documentation.
METRICS CHANGE: Focus on value, progress is more evident (transparency).
Source: September 4, 2012, “Rightsource Your Agile-Lean Ecosystem” Forrester report

21. For distributed: Evaluate the business case
Distributed offshore is hard but can be a viable option with the following practices
Shared goals and metrics
A component approach (architecture-driven)
Feature versus component teams
Double-down on key roles like PO and Scrum Master.
Colocate first, set up infrastructure, then go distributed.
Increase transparency with Kanban, Burndown/Up e- Boards.
Adopt Agile ALM tools and infrastructure that increase collaboration.
For distributed: Evaluate the business case
carefully!

22. Assign permanent and self-sufficient standard open-space rooms for your Agile teams: If distributed, mirror them
Image source: Ci&T (
Source: September 4, 2012, “Rightsource Your Agile-Lean Ecosystem” Forrester report

23. ALM goals and tools are shifting driven by innovation and Agile: mandatory when not co-located
ALM moving more ADM to more of an end-to-end business process for development!
Besides, usual development tools, focus on the tools that developers use infrequently, if ever
Test management supporting TDD, BDD
Planning sharing goals among distributed teams
Requirements with more visual support
Release automation (DevOps)
Project management support for Agile
Reporting/dashboarding for stakeholders not just developers

24. Conclusions Keep your crown jewels local.
Be ready for Agile; you can’t outsource it if you don’t master it.
Pick the right distributed projects for outsourcing Agile.
Bring in new players if your traditional SI can’t help. But be careful! Not all SIs are ready to play the game!
Contracting is hard; explain Agile principles and goals to your contracting stakeholders. Prefer lightweight statement of works.
To scale, especially if distributed, adopt Agile tools and “equipment”.

25. Diego Lo Giudice