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

2. 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

3. 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

4. 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

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

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

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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

15. 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