Lunch and Learn, Pitfalls and Best Practic, Preses Around Outsourcing Software Development, Presented by Neubloc

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  • 1. The Dos and Donts of Outsourcing the Design and Developmentof Software Products Many companies have traditionally outsourced software development (with mixed results) largely because of the financial benefits that are available through the use of off-shore labor. More and more, it makes sense to consider outsourcing for additional reasons, including:  The need to tap into the increasingly global talent pool  The difficulty associated with building a full team and the associated infrastructure  The need to access high-level talent such as design for usability experts, architects, and program managers At this Lunch and Learn, Neubloc will cover when (and when not) to consider outsourcing software design and development. We will look at common pitfalls of outsourcing as well as covering best practices. While the emphasis will be on software development, the discussion should be useful with respect to outsourcing in other areas, including hardware development and business practice outsourcing.© Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 2. The Dos and Donts of Outsourcing the Design and Development of Software Products Armando Viteri CEO Bruce Hunter Director of Business DevelopmentNovember 18, 2005
  • 3. Agenda Introductions--Tell us who you are and what you’d like to get out of today Overview of Neubloc Why consider outsourcing software design and development What to look for in a outsourced partnership What to outsource for established companies Additional outsourcing pitfalls Summary of best practices Q&A If Time and Interest: Some Neubloc Portfolio Examples© Copyright 2008 by Neubloc, LLC. All rights reserved. Phone: (858) 678-0170 | www.neubloc.com
  • 4. About Neubloc We are a San Diego-based firm that helps other companies build software products such as  EnterpriseApplications,  Social Media Applications,  Mobile Apps, and  Embedded Applications We act as a virtual design and engineering department for a range of software companies (startups to Fortune 500)© Copyright 2010 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 5. Neubloc ServicesProduct Strategy and Design  What is your market?  Who are your users?  How do increase adoption and reduce training/support?  How do you craft the roadmap? Application Product Development  Architecture  Program Management  Development  TestEmbedded Product Development © Copyright 2010 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 6. Why Outsource Software Product Design?  Leverage specialized expertise during key periods of product development  UsabilityExperts  Graphic and Creative Designers  Architects—application level, database level, etc.  Outsourcing product design encourages innovation by allowing for fresh perspectives  3rd party validation of scope and cost© Copyrigh 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 7. Why Outsource Software Development?  Focus on core business versus engineering management  Fast time-to-market by leveraging existing infrastructure  Recruitment  Development infrastructure  Project Management  Build System  Test System  Bug Tracking  Engineering Management  More predictable outcome  Talent pool  Access to a global talent pool when local talent is hard to find  Ability to leverage global talent pool  Labor arbitrage  Companies can flexibly expand their development bandwidth when internal teams are maxed out© Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 8. But offshore projects do go fatally wrong  Outsourced vendors can stumble horribly:  Company failure  “Double dipping” on resources assigned  IP theft  When they are offshore there is little recourse  Are you going to chase them through their local court system?  Most of the time the problems are less obvious but still serious  Offshore project management leads to poor implementation or long, costly delays  Offshore companies may not have the ability to get the visas required to get personnel onsite fast.  Using 3rd party firm as staff augmentation versus part of the team© Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 9. What to look for in an outsourcedrelationship?  Single reliable established vendor  US based headquarters, key management and project management  Preferably full services  Design  Development  Maintenance  Critical IP development within the confines of countries with have IP agreements with the US© Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 10. What to outsource for established companies?  Rapid prototyping of unknown/unproven technologies. This frees resources internally to evaluate results and determine their usability in the Enterprise  Reverse engineering of legacy and/or undocumented applications. Every company has those skeletons in the closet…sooner or later they need to come out.  Code Migrations. This requires an enormous amount of time to analyze cryptic data, set up the transfer process, test and perform the migration. In addition, offshore works great for setting up and cleaning up data to prepare the migration.  Your classic software development projects. Here it is strongly recommended that your offshore partner is part of the team as close as possible to inception. This helps to clearly define the scope of the offshore responsibilities.  Testing and maintenance. These are major areas for effective use of offshore resources. Source: Erich Kreidler, USC© Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 11. Additional Pitfalls to Avoid Hiring a single developer  Dependent on him or her to finish the project, and to finish the documentation before they leave  Single person has to fill many roles, including user interface, application design, database design, and test. Going too long between iterations  Prevents you from having the opportunity to monitor progress and to course correct  Leads to surprises Creating a rigid relationship by insisting on fixed costs  Stifles innovation  Focuses time on contractual issues© Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 12. Summary of Best Practices  Single reliable established partner  Make sure there are stateside project champions With product development, priorities and features change   Global resources not always attuned to U.S. management style  Treat the team like your internal team  Regular project reviews with updates on costs and schedules as well as opportunity to review interim deliverables  Make sure you consider intellectual property  Best to deal with U.S. company  Make sure they back end development is done in safe places© Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 13. Questions?© Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 14. Mobile Check DepositCustomer: MitekEnd Customers:Banks © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 15. Corporate LearningManagementCustomer: GeoLearningEnd Customers:Corporate TrainingDepartments © Copyright 2010 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 16. Patent Researchand ManagementApplicationCustomer: IbexEnd Customers:IP Attorneys © Copyright 2010 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 17. RFID Shipping SystemCustomer: EggsOvernightEnd Customers:Corporate shippingdepartments © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
  • 18. Storage Device Development Neubloc is now integral to all aspects of software development at a Fortune 500 company providing disk storage devices. Services provided are firmware development, quality assurance, development of testing tools and development of core software. Technologies used are C/C++.© Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com