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Intellect Uk Presentation Final

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Presentation given by David Carpini, SVP of Symphony Services, at the Intellect UK Summit on Offshore Product Development in February 2009. Carpini covers trends in outsourced software product ...

Presentation given by David Carpini, SVP of Symphony Services, at the Intellect UK Summit on Offshore Product Development in February 2009. Carpini covers trends in outsourced software product development and implications for the European market.

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  • Be prepared to talk about why captives fail:Inability to invest in best practices and toolsNo career path – screws up balanced pyramid – who wants a 5 year guy doing fresher work?Infrastructure and administration costsMention that attrition has been a historical problem, but that today it’s not a big issue with the downturn. Wipro, Infosys laying off for first time.

Intellect Uk Presentation Final Intellect Uk Presentation Final Presentation Transcript

  • Offshore Product Development TrendsSymphony ServicesIntellect UK 2009
    February 24, 2009
  • Symphony ServicesEngineering Successful Companies
    Commercial-Grade Software(ISVs and e-business)
    Complete Product Development Lifecycle capabilities
    Embedded Systems and Software
    Complete Product Development Lifecycle capabilities
    Engineering
    Services
    CAD/CAM
    Mechanical Design
    Fluid Dynamics
  • OPD is not ITO
    Trends and Observations
  • Different Mission – Understanding what drives Product companies is the key
    IP Protection
    Time = Release Dates
    Customer Facing v. Internal Applications
    Product Development is NOT IT Services
    Release Date
    Budget
    MRD/PRD
    IP Protection Principles
    Development = ƒ(Release Date, PRD, R&D budget)
  • Different Mission – Understanding what drives Product companies is the key
    IP Protection
    Time = Release Dates
    Customer Facing v. Internal Applications
    Different Skills
    Product Development Rigor
    Background & Quality of Talent
    Dedicated Development teams
    Non-transient
    Product Development is NOT IT Services
    EVP Engineering
    Head of Dev
    Head of QA
    Head of Support
    GOC Mgr
    GOC dovetails into the Engineering Department
    QA Manager
    Dev Mgr 1
    Dev Mgr 2
    Software
    Architect
    QA Leads
    Config
    Support
    Dev Leads
    Dev Leads
    Sr Dev Engrs
    Sr Dev Engrs
    Sr QA Engr
    Dev Engrs
    Dev Engrs
    Access to Centers of Excellence/Practice Lines for troubleshooting and/or project-based needs
    QA Engr
    CoEs / QMS / HR & Recruitment / IT / Finance
    Symphony GOC is an extension of our client’s engineering organization
  • Different Mission – Understanding what drives Product companies is the key
    IP Protection
    Time = Release Dates
    Customer Facing v. Internal Applications
    Different Skills
    Product Development Rigor
    Background & Quality of Talent
    Dedicated Development teams
    Non-transient
    Rise of Specialized Providers
    100% Focus on Product Development
    Different Operational Models
    Different Contracting Models
    Product Development is NOT IT Services
    If you are looking for Product Development expertise and you are talking to an ITO provider then you are both in the wrong meeting!
  • OPD is not ITO
    Impact of the Economy on Outsourcing
    Trends and Observations
  • Impact of the Economy – Well $100B is just worth a little bit more today… Cash is King
    • Last Year RBS bought ABN-Amro for $100B
    • Today $100B would buy…
    $100B
    $100B
  • Impact of the Economy
    Deer-in-the-Headlights phase has passed
    Non-Decision Phase conserved cash
    But the Economy has created a Call-to-Action
    McKinsey & Duke Offshoring Research Network recommend to Invest in R&D in a Downturn
    Speed and costs limit new captive options
    However, European ISV’s are slow to Adopt Global R&D Strategies
    60% not leveraging offshore
    10% have captives
    What Are You Doing Today?
    What Will You Do?
    Source: Zinnov Management Consulting Pvt. Ltd.
  • OPD is not ITO
    Impact of the Economy on Outsourcing
    The Productivity Challenge
    Trends and Observations
  • Clients should not experience short term job losses and a less effective workforce
    11
    Good Partners ensure Effectiveness and Productivity through a Metrics driven approach
  • OPD is not ITO
    Impact of the Economy on Outsourcing
    The Productivity Challenge
    Rise of Performance-based Contracting
    Trends and Observations
    12
  • Recent Events Change the Way People Look at Outsourcing Contracts
    Economic Crisis is launching a new wave of competitive pressures for providers
    Satyam scandal fuels the flames for more contract control
    Outcome-based Contracting
    Moves dialogue away from rates (lowest-common-denominator) to business alignment discussion
    SLA based contracts and output based pricing
    Can be a win-win for both provider and customer if structured correctly
    Expect Greater Flexibility of Contracting Vehicles
    Balance “great terms” versus profitability and sustainability for your engagement
    The Rise of Performance-based Contracts
    13
  • OPD is not ITO
    Impact of the Economy on Outsourcing
    The Productivity Challenge
    Rise of Performance-based Contracting
    Captives Beware
    Trends and Observations
    14
  • Captives are falling short of the mark – especially SME launched captives
    Scale is critical to financial effectiveness. Sub-scale captives encounter
    30% - 50% Lower Productivity versus onshore teams
    35% Higher Cost than working with a provider
    Difficulty with Recruiting and Retention
    While many analysts peg the magic number at 500 or more, even at 200, almost ¾ of captives don’t pass muster
    Market Correction: 70% reduction of new captive launches over past 4 years
    60% of Captives are failing according to Forrester Research
    Source: Zinnov Management Consulting Pvt. Ltd.
  • About Symphony - Markets Served and Sample Clients
    Enterprise Software
    Storage & ILM
    Web/E-Commerce
    Telecom & Mobile
    High Tech Mfg
    Service
    Providers
  • Symphony Services at a Glance
    Exceptional Delivery Record
    Commercial Software Engineering DNA & Focus
    More than 150 clients
    More than 300 products under management
    1,000+ product releases delivered in both 2007 & 2008
    1:1 Onshore/Offshore productivity
    Top-notch Staff and Quality Standards
    • World-class talent with over 3,500 employees
    • Process maturity rated at CMMI Level 4
    • 6 Sigma process proficiency
    • Strong IP Protection: ISO 27001 certified
    • ITIL Compliant (ISO 20000) and SAS70 Certified infrastructure
    • Certified Agile Development personnel
    • Approximately 600,000 sq ft across 6 delivery centers
    Industry Leadership
    • Largest Pure-Play Product Engineering Firm
    • Named to Global Service 100 three consecutive years
    • Ranked #1 Engineering Outsourcing Provider two years in a row and “Top 50 Best Managed” in 2007 by Black Book of Outsourcing
  • Thank You For Your Time
    David J. Carpini
    Managing Director – International Business Unit
    Symphony Services
    O: +44 (0) 1483 245 457
    M: +44 (0) 7825 970 800