The 2012 IT Planning Guide For Application Development
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The 2012 IT Planning Guide For Application Development



What are the top trends affecting software development in 2012. This comprehensive study and guide book helps companies navigate technology choices and options for getting IT done.

What are the top trends affecting software development in 2012. This comprehensive study and guide book helps companies navigate technology choices and options for getting IT done.



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The 2012 IT Planning Guide For Application Development The 2012 IT Planning Guide For Application Development Document Transcript

  • THE 2012 IT FOR APPLICATION DEVELOPMENT PLANNING GUIDEA review of the software technology trends predicted for 2012 by experts andour own survey results, along with staffing priorities and approaches planned by IT departments and ISVs for next year.
  • The 2012 IT Planning Guide for Application DevelopmentWho Should ReadHow will you get your software developed next year?How will your company take advantage of the latest software trends?And what are those trends anyway?This eBook is for IT decision-makers and softwareexecutives -- CIOs, CTOs, directors of applicationdevelopment or vice presidents of softwareengineering -- facing application developmentneeds in 2012. The guide will help you discoverthe software development and technology trendspeople are talking about for the year ahead, howoutsourcing relates to these trends and whetherglobal outsourcing makes sense for yourcompany.You may have discovered that effective use ofglobal software outsourcing is a promising way tostretch your budget and get more softwaredeveloped than you originally thought possible.You know it can take time to find and select agood software outsourcing firm from around theworld. Many outsourcing companies talk a goodgame about cloud computing and mobiledevelopment or whatever has the latest buzz, butwill they provide you with great programmers andkeep them working on your software for the aslong as needed? You’ll learn about a shortcut tothe reliable software outsourcing firms that avoidsthe posers.Finally, there’s an offer for a free consultation to discuss your situation and how these trends willaffect it with an expert in software technology. Don’t miss this chance to get a running start in2012!About AcceleranceAccelerance helps you engage the right offshore/nearshore team to develop high-quality software.Our free Rapid Referral advisory service enables our clients to make quick, safe and effective use ofglobal software development. Our expert software outsourcing advice and partner referrals arecompletely free for clients because the partners pay Accelerance to find ideal customers for theirservices. We’ve evaluated hundreds of offshore and nearshore software outsourcing firms in over adozen countries to assess their technology expertise and abilities to deliver services successfully tothe North American and other western markets. Only the most qualified software outsourcing firmsare accepted into the Accelerance network of partner companies. We consider each client’sbusiness, technical and geographic requirements to quickly match them with the best Accelerancepartner. Call Accelerance at +1-877-99-ACCEL (877-992-2235) x100 Toll-Free or +1-650-472-3785 x100 for Global Calls www.Accelerance.comAll Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 1
  • The 2012 IT Planning Guide for Application DevelopmentIT Planning ProcessGetting Business Value from Application Development in 2012 Is As Easy as 1, 2, 3.To enhance the effectiveness of your operation and its value to the overall business, you need todevelop applications that drive operational goals. The best way to do that is good planning: 1. Evaluate trends: Understanding the factors driving your business and operations empowers you to make better decisions that will positively affect your bottom line. 2. Identify priorities: Choosing the trends that provide the most opportunity for your enterprise will enable you to focus resources on activities that get results. 3. Determine staffing: Executing your plans for 2012 requires the right talent for the job, including internal staff and external contractors.1. Evaluate TrendsHere are some trends we’ve been watching:  IT budgets are growing: 40% of IT decision-makers expect their budgets to grow, the lowest level since 2009 (Spending is Heading Up, Mostly)  Maintenance dominates: 70% of IT spend is devoted to maintaining and operating the organization, systems and equipment (MOOSE). (IT MOOSE Management — 20 Best Practices)  Info management outpaces process automation: 39% of IT 2012 budgets will be spent on information management; 32% on process automation. (2011 Corporate Executive Board Survey)  Security is paramount: 37.5% of CIOs ranked IT security and privacy as their top concern, followed by virtualization/cloud, regulatory compliance and managing contractors and vendors. (Protiviti’s 2011 Information Technologies Capabilities and Needs Survey)  Staffing remains stable: 75% of technology decision-makers expect staffing levels to remain the same in 2012; 10% predict staff reductions. (Spending is Heading Up, Mostly)  Apps get more focus: 41% of IT staff function dedicated to applications; 22% to infrastructure. (2011 Corporate Executive Board Survey)All Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 2
  • The 2012 IT Planning Guide for Application Development2. Identify PrioritiesOf course your own enterprise will have priorities you need to address. But we think the four bigideas outlined in the 2011 IBM Global CIO Study provide a solid framework for annual planning: 1. Expand: Refine business processes and enhance collaboration 2. Leverage: Streamline operations and increase organizational effectiveness 3. Transform: Change the value chain via better relationships 4. Pioneer: Drive innovative products, markets and business models Courtesy of the 2011 IBM Global CIO StudyWithin these mandates are key tasks that will improve operations and reduce spend:  Updating legacy systems and controlling costs associated with them *  Improving the customer experience for new or improved apps *  Standardizing infrastructure/processes and creating better business processes *  Developing innovative technology and identifying new revenue streams *  Deploying real-time information and “big data” more effectively *  Enhancing communication and collaboration internally and externally  Implementing risk management frameworks  Expanding and improving the value chain  Pursuing continual growth* These activities are best suited to offshore outsourcing.All Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 3
  • The 2012 IT Planning Guide for Application Development3. Determine StaffingEven with high unemployment across the U.S., it can be hard to find the talent you need locallyand affordably. A New York Times article reported that many students hoping to study technologyand engineering give up when they struggle in early courses, reducing the pool of qualifiedprofessionals. With demand high, qualified candidates could cost upwards of $250,000 annually.What’s a company to do? Consider outsourcing offshore to a team of skilled developers. Sure, it’sless expensive (see chart). About 50% less. But that’s only part of the benefit. U.S. Employee Hourly U.S. Offshore Cost Outsourcing Outsourcing $43 $86 $22 $50 $100 $26 $57 $114 $30 $65 $130 $35 $72 $144 $39 $79 $158 $43 $86 $172 $48With a solid offshoring strategy, you can do more than augment your staff.You can develop great software with an offshoreprogramming team. And because the group works atyour direction, you can create a predictable softwaredevelopment process, including project management,requirements-gathering, software design, architectureand technology recommendations, and testing andquality assurance.Another benefit is flexible ramp-up and ramp-down.With our Rapid Ramp-Up custom sourcing service,your selected partner will hire and run your softwaredevelopment team under your direction. We also offera Build, Operate and Transfer (BOT) option thatenables you convert the team into your enterprise at alater date. And when you’re done, you’re done. Nofiring. No layoffs. No hassles.Even better? You don’t have to get on a plane to do it.As an established software outsourcing company, weapply our proven sourcing, screening and selectionprocesses broadly to secure the best in offshoresoftware development.For more, check out these posts on our blog:  The Outsourcing Engagement Process  Body Shop or Sweat Shop (Or Neither)All Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 4
  • The 2012 IT Planning Guide for Application DevelopmentWorking the Agile WayAs the wave of Agile software development crests to its second official decade in 2012, it’s clearthat its use improves quality, adds value and decreases risk.As its name implies, Agile is ideal for projects requiring quick turn-around in chaotic situations withchanging requirements. Its sprint-based nature and reliance on continuous integration (where newworking versions are released on a 2- to 4-week basis) optimize quality and control risk.To ramp up projects quickly and ensure consistent quality and reliable delivery, we recommend aSprint Zero approach with the following emphases:  Start right: The first day of Sprint Zero is usually dedicated to training or a refresher on Agile and Scrum, as well as team-building. The start of a project or a sprint is often called a “Kick-off Meeting”. Would you like us to use that terminology? In addition to being a team- building opportunity, kick-offs are often where feature estimation is handled in a group setting. In the official Scrum Guide, Jeff Sutherland and Ken Schwaber recommend that a kick-off meeting last no more than 8 hours for a one-month sprint or 4 hours for a two-week sprint.  Get quality items on the backlog: Teams take time to define the features or “user stories” they’re going to build during the current sprint. This is usually done by the product owner, acting as the customer’s representative, and most often involves prioritization of feature requests and underlying functionality handled in such a way that a full working version of the software is always delivered at the end of each sprint.  Decide on a definition of done: It’s vital that all team members understand the “definition of done” which applies to all feature requirements and acceptance tests for a given sprint. An important aspect here is that “done” is a binary condition; there is no such thing as 60% done, for example, on an Agile project.If this feels contrary to the traditional waterfall model ofdevelopment, that’s because it is. Agile projects tend tobe more collaborative and transparent. This lends itselfwell to offshore/nearshore outsourcing.Want to know more? Check out this webinar aboutmanaging the risks of software outsourcing with Agilemethodologies.All Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 5
  • The 2012 IT Planning Guide for Application DevelopmentWhat about CMMI?We think Agile is a perfect match for CMMI. For example, our partner firm in Colombia collaboratedrecently with a Canadian company to create a system for managing thousands of video cameras bycollecting real-time data such as GPS location information for police and other emergency serviceproviders. You can read more about how a hybrid Agile/CMMI approach was ideal for this projectthat was mission-critical in every sense of the term.The nature of CMMI as a process improvement model blends perfectly with Agile’s empiricalprocess approach where bug lists, prioritized feature backlogs and burn-down charts can be easilymonitored in near-real-time using commonly available online tools. A test-first approach to codingassures system integrity and facilitates continuous integration of new code while limiting theprospect that newly-created parts of a system will render older parts inoperable.Want to know more? Watch this webinar about therelationship between Agile methodologies and CMMI.All Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 6
  • The 2012 IT Planning Guide for Application DevelopmentWorking in the CloudTurns out the Rolling Stones had it wrong in when they told the world to Get Off of My Cloud. Nowthe cloud is where everyone wants to be. The 2010 IBM Global Tech Trends Survey found that 91percent of IT pros polled thought the cloud would be the primary IT delivery model by 2015.Why? Cloud computing eliminates the financial and logisticaloverhead associated with hosting applications and ramping uprapidly by offering a cost-efficient, secure alternative to traditionalhardware infrastructures. The majority of respondents to oursurvey noted that cloud storage and computing was a high tomedium priority for 2012.For example, the cost of a single dedicated computer for hosting isabout $3K for three years. With cloud computing, for the same$3K you can harness the power of 1,000 computers for a singleday (to handle a usage spike, for example) and then just turn itoff. Outside of the cloud, this level of flexibility is impossible. $3,000 for One Computer or aThe cloud allows enterprises to get much farther with just a few Thousand?end-to-end developers. This is particularly important for startupsthat are moving rapidly to launch new products in less time withminimal staff. But new skills are required to manage the cloud, and you may not have this talentin-house:  Web analytics and statistics: Driving site traffic through search and other vehicles is essential to monetization. Advertisers want the most for their money. This means analyzing user interactions and trends, discovering patterns and identifying new needs.  Data mining: Cloud systems can be immense, so knowing what’s in them is essential to creating value. Using statistical methods to spot patterns in huge data sets helps organizations get the most from their investments. Data mining is a core competency because it helps businesses gain an informational advantage over competitors.  Business intelligence: As companies hire more data miners to sift through and organize information, they need people to interpret that data and translate it into operational goals. This requires staff with a passion for engineering and competitive intelligence who can help team members understand both cloud and customer. The overwhelming majority of respondents to our survey indicated that business analytics was a high priority for 2012.Since cloud services can be managed from anywhere,location-specific hiring is less of an issue. Offshoreoutsourcing may be a viable human capital strategy forrapidly growing companies seeking top talent atreasonable rates. For more, checkout our webinar,Cloudy with a Chance of Outsourcing.All Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 7
  • The 2012 IT Planning Guide for Application DevelopmentBuilding UI/UXGood UI/UX work can improve applications and reduce development time. Or not. To get the mostfrom these critical roles, you need highly specialized and skilled team members to handle eachfunction.  UI development is still the domain of programmers expert in, say, Ruby on Rails. UI pros often hold dedicated positions on the dev team and are responsible for writing code and accompanying documentation.  UX design experts work through the product development cycle. They handle product planning to determine the value of products and services and help create goals that support overall business strategy. These people also handle usability testing for prototypes and finished products.If you don’t have internal candidates forthese roles, offshore outsourcing is asmart and affordable way to get thetalent you need. Similarly, if you have alarge project but no capacity to handleit, working with an offshore team canenable you to take on the new projectwithout letting continuing dailyoperations suffer. The group provides astart-to-finish solution for the entireproduct development lifecycle.Bringing in an outside team can help yousecure the human resources you needwithout the management hassles. Thekey is choosing a team that uses amethodology similar to yours, such asCMMI or Agile (see Working the AgileWay on page 5).All Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 8
  • The 2012 IT Planning Guide for Application DevelopmentBuilding Mobile/Tablet AppsIt seems that there’s a mobile app for just about everything, from productivity and utilities, todigital marketing and entertainment, apps aren’t just for Happy Hour anymore. By virtue of shearnumbers alone, mobile apps have taken the world by storm. Demand for these shiny little chicletsof code seems still to lag the capacity of users to desire them.And we’ve only just begun. According to the 2010 IBM Global Technology Trends Survey, 55percent of IT pros think application development for phones and other mobile devices will overtakedevelopment of all other traditional computing platforms by 2015. The majority of respondents toour own survey said mobile development was a high priority for 2012.But as simple and sexy as mobile appsseem to be these days, some CIOs seerisks:With frequent delivery of new devices andOS upgrades, it’s challenging for mostorganizations to keep up with currenttechnology or to plan for the future. Oneof the biggest unknowns in this regard isthe future viability of HTML5. Long toutedas a multi-platform panacea, native appsstill far outnumber those created for astandard that seems less standardizedthan many had hoped. And as each newdevice flies off the factory floor with itsown set of unique vulnerabilities,companies lack official mobile securitypolicies.Despite the challenges, mobile app development will continue to grow. According to KameshPemmaraju of The Sand Hill Group, this is because mobile devices and applications provide bothinternal business value and external value through customer interactions. That’s probably whymobile app development is driven as much by business unit heads as by the IT department.As mobile operating systems and devices continue to proliferate, so does the number of peoplewho can create mobile apps. The narrow scope of most mobile applications makes them ideal foroutsourcing/offshoring to a small distributed team.Most modern web apps usually require a mobile user interface and global software outsourcingfirms that are good at designing and developing web apps must also be good at mobile apps thataccess those web apps.All Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 9
  • The 2012 IT Planning Guide for Application DevelopmentThe 2012 IT and Software App Priorities SurveyAt the end of November 2011 Accelerance asked recipients of our online newsletter to respond to amultiple-choice online survey request about their IT and application development priorities for2012. Here are the raw results: IT and Application Development TECHNOLOGY - What are your priorities for 2012? High Medium Low or N/AMobile/Tablet Apps 47% 42% 11%Cloud Storage & Computing 53% 32% 16%New Web Apps 56% 33% 11%Business Analytics 61% 17% 22%CRM 50% 22% 28%Integration using SOA 24% 41% 35%Third-party APIs & Services 12% 65% 24%IT Security & Privacy 47% 29% 24%Agile or Scrum Methodologies 33% 44% 22%UI/UX Improvements 32% 32% 37% IT and Application Development STAFFING - What are your priorities for 2012?Answer Options High Medium Low or N/AHire More Developers 45% 35% 20%Outsource to Extend Your Team 22% 22% 56%Establish a Captive Offshore Development Center 17% 28% 56%Move Offshore Development back In-House 6% 18% 76%Implement Shared Services for IT 12% 47% 41%An examination of the survey results shows these key points:  Mobile is still popular: Half of respondents selected it, in contrast with articles that say interest in mobile is waning  New web apps: Most respondents are planning to create them  Business analytics: is hot! A high priority for a majority of respondents  UI/UX improvements: not so much  Third-party APIs: a medium priority for most respondents  Hire more developers locally: and offshore development is a low priority for most  But keep offshore development going: A big majority have low priority or no plans to move offshore development in-houseAll Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 10
  • The 2012 IT Planning Guide for Application DevelopmentWrap-upWell, there you have it: the trends impacting software application development for the comingyear. Here’s a recap of the big take-aways:  IT budgets are growing: More demand for applications and other technology is prompting decision- makers to allocate more funds.  Maintenance dominates: Most of those funds are dedicated to maintaining legacy systems and apps, meaning you’ve got to find less expensive options for developing new technologies  Info management outpaces process automation: Managing data is a higher priority than streamlining processes, but both are necessary.  Security is paramount: Locking down proprietary information and ensuring privacy are the biggest concerns for tech decision- makers. IT execs love the cloud, but security concerns remain a problem.  Staffing remains stable: That means you’ve got to do more with the same headcount, and find effective and cost-efficent ways to outsource projects to qualified vendors.  Apps get more focus: Most internal staff time is spent on applications, meaning infrastructure maintenance and improvements are ripe for outsourcing. Mobile/tablet and web apps are the highest priorities.How will these trends affect your job and your enterprise?All Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 11
  • The 2012 IT Planning Guide for Application DevelopmentLet’s talk!You’ve gone through the guide, now it’s time to figure out how to apply all this to the work you’redoing. So give us a call. We promise we’re not going to put the hard sell on you. Our goal is to helpyou:  Gain insight into the IT and application development staffing process  Discover options you may not be aware of for completing IT projects  Identify opportunities to reduce costs and increase ROI  Explore how cloud computing, HTML5 and mobile fit with your initiatives  Create a step-by-step action plan to get things done  Feel confident and re-energized about 2012To achieve that, we’ll ask you questions like:  What are your goals and objectives for 2012 IT application development?  What is the impact (business value) of achieving these goals?  What are your challenges? What is getting in your way?  How can we help you?  What are the next steps?What are you waiting for? Click here to set up your free consultation with Accelerance CEO SteveMezak. (Yes, free. No cost. No obligation. No lie.)Why are we doing this for free? When we speak directly to CTOs and other development /engineering leaders, we get a better understanding of if and how Accelerance can assist you inachieving your goals. Yes, it helps us qualify you as a lead (or not). But there’s definitelysomething in it for you: advice and a sense of what it’s like to work with us.So click here now to schedule your call with Steve:* with one ormore times that work for you. Let’s get going!* The website from TimeBridge is a free & very convenient service for schedulingappointments quickly - and it works really great most of the time. But if the site is down or actingcranky, please just send an email to and well schedule our call the old-fashioned way. All Rights Reserved. Copyright © Accelerance, Inc., 2011 Page 12