Software Outsourcing: Outsource Your Project or Build a Team


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This presentation is about two different models of outsourcing - project-based and team-based outsourcing. Read through this presentation material to learn more how to successfully select a proper IT Outsourcing Model for your business.

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Software Outsourcing: Outsource Your Project or Build a Team

  1. 1. Software OutsourcingOutsource your project or build a team Find out what’s best for you >
  2. 2. Table of contents• IT Outsourcing models• Outsource your project  Overview  Business case  Advantages  Pricing models• Build a team  Overview  Structure  Methodology  Benefits• About Softheme
  3. 3. IT Outsourcing models There is no doubt that IT Outsourcing is the eventual choice for most companies, as in-house IT staff is expensive, difficult to motivate and manage, and in many cases they don’t stay around for very long.
  4. 4. IT Outsourcing modelsWhen it comes to IT Outsourcing, there are two main support models:Traditional IT Outsourcing is a lot like having your own in-house IT staff – except that theywere not on your own payroll. Instead, you pay the IT Outsourcing Company to provide acertain number of staff for a pre-determined number of hours per week or per month.Managed Services, on the other hand, is a different model of IT Outsourcing altogether.Instead of paying for the time of an IT employee, you are paying for your systems to beproperly designed, maintained and supported – regardless of what the service providerhas to do to achieve that.Ultimately, this is the end objective of any IT department.
  5. 5. Outsource your projectQuick overview Project-based outsourcing is the best fit in case when your project requirements and deliverables are clearly defined. It proves to be the ultimate choice for irregular though ongoing or one-off projects. Project-based outsourcing provides for greater flexibility and focus, corresponding to changing needs for resources with pricing being based on the project scope.
  6. 6. Outsource your projectBusiness caseThe most typical cases to consider project outsourcing are when: Cost benefits are to be obtained immediately Outsourcing for you is rather short/mid-term goal, not a strategy Long-term investments are not intended Short-term project could not be handled internally Missing specific skills/know-how Project deadlines are constrained
  7. 7. Outsource your projectKey advantagesProject-based outsourcing offers a number of advantages, such as: Project deadline is known before the initialization of project Fixed costs and fixed budget Quick realization of cost savings Access to specific technology expertise and best practices Avoidance of long-term risk
  8. 8. Outsource your projectTypical pricing modelsWhen outsourcing a project, customers usually select one of these three popular pricing models: Time and Materials Managed Capacity Fixed Price Based on the Based on the pre- A certain quantity number of hours defined scope of of man-hours or of work completed work to be man-days at a pre- per day. completed. negotiated rate.
  9. 9. Outsource your projectTypical pricing models: explainedTime and MaterialsTypically, the T&M model is preferred when the project scope, specification andimplementation roadmap can’t be decided on the initiation stage of the project and mightvary dynamically during the project implementation. This engagement model helps mitigatethe risks of ambiguity and frequent changes in the project scope.Fixed PriceThis model is best suited for projects with a pre-defined scope and clear specifications andhelps achieve absolutely predictable budget forecasts and fastest time-to-value on yourenterprise systems.Managed CapacityThis engagement model is most effective when the project outcome is well-defined andclearly established but the path to the goal is apt to changes.
  10. 10. Build a teamQuick overviewWhen building a team, customers get dedicated resource base that is workingexclusively on their projects and can be managed as if it were their internaldepartment.This delivery model is best suitable for software projects with changing requirements,maintenance and support of large systems, research and development, testing as wellas other types of complex ongoing tasks.
  11. 11. Build a teamCore structure QA Team Client Client Project Manager Programming Co-Coordinator Team Your In-House Resources Design and SEO Team
  12. 12. Build a teamMethodology overviewTypical methodology of building an offshore development team looks like thefollowing six steps: Step 1. Project Team Creation Step 2. Onsite-to-Offshore Knowledge Transition Step 3. Offshore Process Definition Step 4. Offshore Simulation Step 5. Offshore Project Execution Step 6. Review the project deliverables and identify the weak areas of the implementation.
  13. 13. Build a teamMethodology overview Step 1. Project Team Creation • Sign off on a Scope Agreement • Identify key team members for a project Step 2. Onsite-to-Offshore Knowledge Transition The main goal for this phase is to understand client’s requirements, business procedures, company standards, the specific systems’ IT environment as well as the approach that will be used. Its a huge learning curve but once you get over it, it is much easier to move further to the next step.
  14. 14. Build a teamMethodology overview Step 3. Offshore Process Definition On this stage, performing customization of the methodology for the client’s specific requirements should be done. Step 4. Offshore Simulation • Simulate client’s IT environment at an Offshore Development Center • Review and confirm the Service Level Agreements (SLAs) • Build the Offshore Infrastructure (IT, software, and physical) • Set up the Offshore Team (project management, development, QA) • Perform metric-defined training of the Offshore Development Team
  15. 15. Build a teamMethodology overview Step 5. Offshore Project Execution Start executing the project according to the agreed project plan for the first 6 month period. Step 6. Review the project deliverables and identify the weak areas of the implementation • Implement the feedback • Have the first year Service Agreement review
  16. 16. Build a teamKey benefitsBuilding an offshore team has a number of benefits that are listed below: No long-term initial investments, flexible pricing, quick ROI Full operational control, complete flexibility of operations Readily available facilities/infrastructure at hand Consistent but flexible team Seamless integration into customers workflow and processes Accumulation of customer-specific knowledge Strong service delivery and methodology practices
  17. 17. Thank youKeep the information from this presentation in mind, carefully analyze your businessneeds, discuss your preferences with a potential outsourcing partner, and you willalways be successful in selecting the right IT Outsourcing Model for your business. Learn more about Softheme >
  18. 18. About SofthemeCore Services: Company Fast Facts:• Software development • Founded in 2006, privately owned, UA ownership• Software re-engineering • More than 1,000 successfully delivered projects• Enterprise-level application development • 250+ developers and testers in 5 offices in Kiev• Web development • 80% of clients selected Softheme basing on customer recommendations• Mobile development (iOS, Android, Blackberry, etc.) • 30% certified specialists (Microsoft .NET, Sun Java, etc.)• Software maintenance & support • Customers in the USA, UK, Japan, Western/Eastern Europe• Independent testing & QA range from start-ups to Fortune 500 corporations• Remote system administration / security audit• Web marketing, marketing automation• Dedicated development teams Application Domains: • ERP / CRM / Document management • Website / blogs / e-commerce • Social networks with video • Data analysis / data security • Finance • SaaS, and more Technologies: C# .NET, Java, C/C++, ASP.NET, PHP, Ruby, Python, Delphi, Oracle, MS SQL, mySQL, JS/Ajax
  19. 19. About SofthemeTerms of Engagement: Softheme Mission:• Cost-free project quote, free pilot project Softheme mission is to create better applications• Confidentiality / IP rights reserved for a better world.• Fixed-price, fixed-team, time & materials Softheme does not save on specialists and contracts equipment but rather optimizes process and• Rates starting at 15 USD resource/hour operations applying profound industry experience• Flexible cancellation policy and knowledge. Testimonials:“We selected Softheme basing on: (1) Softhemes “Over time we had completed several projects from startexperience in conducting Data Mining projects, their to finish with Softheme. From the initial analysis of theexperience in previous implementations of algorithmic project scope to detailing the required functionality tocomponents, rule based and real-time expert systems, implementation and on-time delivery, Softheme requireddata query optimization, (2) Understanding of our our input mostly on the changes to the initial design andSOWs, (3) Human resources and infrastructure.” pretty much took care of the rest.”Mark F. on his experience with Softheme’s C# John S. on his experience with Softheme’s Web/Mobile,developers C#/C++ and QA units
  20. 20. Contact us USA Phone: (+1) 202-657-5672 UA Phone: (+380) 44-209-4474 skype: softheme e-mail: info@softheme.comContact us now for a FREE quote!