InterVenture Nearshore Software Outsourcing: Case Study - Own Software Development Team Model

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The Establishment of a Nearshore Software Development Team for DRSdigital AG.

The Establishment of a Nearshore Software Development Team for DRSdigital AG.

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  • 1.     Case  Study   Nearshoring  2.0  –     Own  Team  Model   The  Establishment  of  a  Nearshore     Development  Team  for  DRSdigital  AG   Contact     Mr.  Frank  Rennekamp   CTO   DRSdigital  AG,  Frankfurt  (Germany)   www.drooms.com   Technologies:  Ruby,  JavaScript,  Android   Number  of  developers  as  of  December  2013:  5   “With  InterVenture  we  were  able  to  extend  our  development  team   op7mally.  Due  to  daily  SCRUM-­‐mee7ngs  our  team  in  Belgrade  is   completely  integrated  in  all  our  projects.”     Frank  Rennekamp   CTO,  DRSdigital  AG  
  • 2. Overview   •  DRSdigital  AG  (www.drooms.com)  is  a  fast  growing  German  company  and  market  leader  in  the   field  of  virtual  data  rooms.  The  company‘s  soQware  products  are  used  for  highly  secure  storage,   access  and  exchange  of  confidenSal  documents  during  due  diligence  projects  within  M&A,   Corporate  Finance,  Real  Estate  and  Banking  transacSons.     •  The  soQware  plaWorm  is  mainly  developed  in  Ruby  on  Rails  and  JavaScript.     •  The  growth  of  DRSdigital  was  hindered  by  too  long  Sme-­‐to-­‐market  due  to  the  local  shortage  of   qualified  soQware  developers,  especially  in  the  field  of  Ruby  on  Rails.  The  company‘s  previous   aZempt  to  outsource  parts  of  the  development  failed  mainly  due  to  problems  in  communicaSon   and  mutual  understanding.     •  Prior  to  contacSng  InterVenture,  DRSdigital  has  tried  in  vain  to  find  adequate  soQware  engineers   for  about  nine  months.     •  The  primary  moSvaSon  for  choosing  our  Own  Team  Model  was  the  need  for  an  own  and   permanently  dedicated  team,  where  specific  knowledge  and  experSse  could  be  accumulated  and   uSlised  on  long  terms  in  an  agile  environment.     •  The  agreed  iniSal  nearshore  team  size  in  Belgrade  included  three  full  Sme  developers  –    two   Ruby  on  Rails  and  one  JavaScript  developer.     •  Two  months  aQer  the  iniSal  contact  with  InterVenture,    DRSdigital  had  the  first  Ruby  developer   si`ng  in  our  development  center  in  Belgrade.  Within  the  following  month  the  remaining  two   team  members  were  recruited  and  added  to  the  team.     •  Formal  educaSon  of  the  starSng  Team:  2  Masters  in  Computer  Science,  1  Master  in  MathemaScs   with  all  developers  having  5+  years  of  working  experience.     •  AQer  expanding  the  development  team  with  InterVenture,  DRSdigital  was  able  to  reduce  Sme-­‐to-­‐ market  considerably.  The  company  announced  further  team  add-­‐  ons,  both  seniors  and  juniors,   to  push  the  development  of  addiSonal  products,  parScularly  in  the  mobile  area.   Page 2 of 4
  • 3. RecruiSng  Process:  2  rounds   •  Required  skills  and  experSse:  AQer  receiving  from  DRSdigital  the  specific  requirements  regarding   the  technical  know  how  of  the  desired  candidates,  we  have  started  the  search  process  within  our   internal  network  and  free  labour  market.       •  PreselecSon:  Internal  first  round  interviews  with  promising  candidates  were  organised  at  the   InterVenture  nearshore  center.  Our  Team  Manager  and  HR  primarily  focus  here  on  technical   know  how,  command  of  English  and  soQ  skills,  like  moSvaSon  and  ability  to  proacSvely  work  in  a   team.  During  this  process  the  candidates  were  also  given  more  informaSon  about  DRSdigital  as   well  as  about  their  future  role  and  responsibiliSes.     •  RecommendaSon:  The  CVs  of  the  candidates,  who  have  successfully  passed  the  first  round   interviews,  were  forwarded  together  with  our  assessment  summary  to  DRSdigital  for  review  and   feedback.     •  2nd  round  interview:  Candidates,  who  were  shortlisted  by  our  client,  were  invited  to  a  second   round  interview  at  our  development  center.  The  CTO  and  HR  Partner  of  DRSdigital  lead  here   direct  interviews  with  the  individual  candidates  via  video  conferencing.  AQer  this  a  homework   test  was  sent  out  to  all  candidates.   •  Decision:  The  final  selecSon  of  the  right  candidates  was  made  by  DRSdigital  by  taking  the   suggesSons  of  InterVenture  into  account.     Transparent  CompensaSon   •  AQer  the  first  round  interviews  InterVenture  noSfies  its  clients  about  the  individual  salary   expectaSons  of  the  corresponding  candidates.  We  also  make  suggesSons  regarding  fair  salary   offers  by  reflecSng  the  local  labour  market  development.   •  The  InterVenture  management  fee  applies  to  all  employees  and  comes  on  top  of  the  direct   salaries.  All  components  are  shown  transparently,  which  allows  DRSdigital  to  compare  the   performance  within  the  team,  manage  work  expectaSons  and  reward  good  individual  results  –   the  same  way  as  with  in-­‐house  employees.       Page 3 of 4
  • 4. Everyday  CollaboraSon •  The  in-­‐house  and  nearshore  teams  are  technically  and  organisaSonally  completely  integrated.   They  work  together  in  a  distributed  scrum  environment  as  one  department.   •  All  colleagues  have  the  same  @drooms.com  email  extension  and  are  connected  to  the  same   development  environment  via  dedicated  VPN  link.   •  Daily  morning  meeSngs  via  video  conferencing  ensure  that  everybody  is  up  to  date  with  relevant   informaSon.     •  All  team  members  are  permanently  online  and  available  for  discussing  the  daily  issues.   •  The  local  team  lead  in  Belgrade  scales  the  addiSonal  informaSon  flow  with  the  CTO  in  Frankfurt   and  makes  sure  that  all  tasks  are  correctly  understood  and  put  into  perspecSve  with  the  “big   picture“.   •  Weekly  internal  briefings  between  all  colleagues  and  the  InterVenture  Team  Management  ensure   that  potenSal  issues  of  any  kind  are  idenSfied  and  resolved  on  Sme.   •  Occasional  in-­‐person  meeSngs  in  Frankfurt  and  Belgrade  are  organised  to  opSmise  the  necessary   know  how  transfer  and  to  strengthen  the  team  spirit.  For  example,  the  whole  Belgrade  team  was   invited  to  Frankfurt  for  the  company‘s  Christmas  party  event.   •  At  the  beginning  all  team  members  spent  one  week  in  Frankfurt  to  meet  other  colleagues  and  to   get  to  know  the  organisaSon,  products  and  processes.   •  All  members  of  the  Belgrade  team  work  permanently  and  exclusively  as  part  of  DRSdigital.     MBO   •  We  use  in  general  Management  By  ObjecSves  ("MBO")  for  defining  objecSves  for  the  developers   so  that  management  and  employees  agree  to  the  objecSves  and  understand  what  they  need  to   do  in  the  organisaSon.       •  In  line  with  the  exisSng  internal  processes  of  DRSdigital,  it  has  been  agreed  to  have  an  annual   MBO  review,  which  allows  to  track  the  technical  but  also  personal  development  based  on  defined   and  reached  objecSves  and  to  employ  corresponding  performance  incenSves.  During  this  process   targets  for  the  upcoming  year  are  also  being  set. Page 4 of 4