Trends in Software Outsourcing are

Best Practices

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Table of Contents
- Selecting

a vendor

critical factors » business expectations » re relationship control » success / failure

- Applying effective outsourcing strategy y
focusing on outcomes » monitoring the de e development cycle

- Managing risks
risk categories » risks mitigations

- Signing service level agreements
goals & objectives » performance measure surement » processes & practices » knowledge/data transfer » technology & s services evolution » client-vendor relationships

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Trends in Software Outsourcing: Best Practices nds

Selecting a vendor
- Accounting for the most critical factors: rs:

finance

technology

process

opera erations

people

business

part of the project in the vendor's portfolio

investing in training, case studies, experience

quality control, development cycle

manag nagement
&

commu munication

selection criteria, labor pool

flexibility to change reflecting customers business needs and processes

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Trends in Software Outsourcing: Best Practices nds

Selecting a vendor
- Setting business expectations:
background

getting to know your partner

goals

values valu

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Trends in Software Outsourcing: Best Practices nds

Selecting a vendor
- Setting business expectations: Understanding the comb mbination of:

costs experience dedication risks

location
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quality
Trends in Software Outsourcing: Best Practices nds

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Selecting a vendor
- Keeping control of the relationship:

participate: manage:
taking responsibility for the project knowledge transfer, training

control communicate:
provide feedback, deal with the issues

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Trends in Software Outsourcing: Best Practices nds

Selecting a vendor
- Measuring success, handling failures:
saved costs ts new tools, functionality, performance y, pe processes function without major involvement ma of the management team ent decreased time for management ent/communication customer satisfact faction

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Trends in Software Outsourcing: Best Practices nds

Applying effective outsou tsourcing strategy
- Focusing on outcomes:
specifying business problem providing necessary explanations suggesting technology, architecture managing the development cycle feedback quality assessment process improvements

on the client side: ide:

on the provider side side:

on both sides: s:

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Trends in Software Outsourcing: Best Practices nds

Applying effective outsou tsourcing strategy
- Monitoring the development cycle: 
tracking the status via:  reports  reviews  meetings 

receiving end-user feedback  converting it into new requirements / bug reports

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Trends in Software Outsourcing: Best Practices nds

Managing risks

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Trends in Software Outsourcing: Best Practices nds

Managing risks
- Risk categories:
core product knowledge quality, performance

strategic

opera perational

financial
costs

le legal
IPR, contract

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Trends in Software Outsourcing: Best Practices nds

Managing risks
- Risks mitigations:
Utilize technology: - tools for tracking communication - automated tools for tracking task - tools for measuring progress/performance Manage knowledgebase: - technical documentation - knowledge transfer within the teams ontrol Contr the process: make - mak sure the processes are integrated communicate regularly - com maintain formal specifications - main receive - rece and analyze reports conduct reviews / provide feedback - cond easure the deliverables: Meas quality - qual timeliness - time - skills and capabilities Adjus the contract: djust - test possible scenarios introduce incentives and penalties - intro share - shar risks and rewards
Trends in Software Outsourcing: Best Practices nds

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Signing service level agre agreement
- Focusing on outsourcing goals and object jectives:

- a vital terms and conditions all should be reflected in the sh Service Level Agreement Se -t take into account known issues iss - b clear on the assumptions be you yo are making

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Trends in Software Outsourcing: Best Practices nds

Signing service level agre agreement
- Measuring performance:
- agree on a clear performance metrics - choose pricing model which reflects performance improvement ns - introduce incentives for ideas and solutions s which result in performance improvements - include penalties

- Defining processes and practices:
- make sure the processes and procedures are flexible enough - business specific aspects should be taken into account when defining processes

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Trends in Software Outsourcing: Best Practices nds

Signing service level agre agreement
- Knowledge and product data transfer aspect: r asp
- the mitigation strategy in case the team mem ember leaves should be in place - the transition strategy in case of switching to another provider: g
architecture addresses functional and non-functional requirements

data relocation procedures

code stored on the client side

technology corresponds the project tasks

documented code

- security aspect: - access to logs, backup policies - modular access to the project data - access levels defined for every team memb mber
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Trends in Software Outsourcing: Best Practices nds

Signing service level agreement
- Evolution of technology and services:
- new technologies on the market - a need in newer equipment - training on new technology trends - reviewing the pricing model

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Trends in Software Outsourcing: Best Practices

Signing service level agre agreement
- Client-vendor relationships:
- spread the responsibility both parties should be responsible for risks within their control

- possible changes and improvements on both sides oth - additional costs : - training - meetings - equipment - need in new services

- effective collaboration model: - onsite and offsite team structure

onsite team

offsite team

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Trends in Software Outsourcing: Best Practices nds

Thank you k you!
Questions???
info@s o@softheme.com

2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions So

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