Trends in Software Outsourcing: Best Practices

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Presentation showcasing best practices in software outsourcing: selecting a vendor, applying effective outsourcing strategy, managing risks, signing service level agreements.

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Trends in Software Outsourcing: Best Practices

  1. 1. Trends in Software Outsourcing<br />Best Practices<br />www.softheme.com<br />
  2. 2. Table of Contents<br /><ul><li>Selecting a vendor</li></ul>critical factors  business expectations  relationship control  success / failure<br /><ul><li>Applying effective outsourcing strategy</li></ul>focusing on outcomes  monitoring the development cycle<br /><ul><li>Managing risks</li></ul>risk categories  risks mitigations<br /><ul><li>Signing service level agreements</li></ul>goals & objectives  performance measurement  processes & practices  <br /> knowledge/data transfer  technology & services evolution  <br /> client-vendor relationships<br /> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  3. 3. Selecting a vendor<br /><ul><li> Accounting for the most critical factors:</li></ul>finance<br />technology<br />process<br />operations<br />people<br />business<br />part of the project in the vendor's portfolio<br />investing <br />in training, <br />case studies, experience<br />quality control, development cycle<br />management <br />&<br /> communication<br />selection criteria, <br />labor pool<br />flexibility to change reflecting customers’ business needs and processes<br /> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  4. 4. Selecting a vendor<br /><ul><li> Setting business expectations:</li></ul>background<br />goals<br />getting to know <br />your partner<br />values<br /> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  5. 5. Selecting a vendor<br /><ul><li> Setting business expectations:</li></ul>Understanding the combination of:<br /> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  6. 6. Selecting a vendor<br />manage:<br /><ul><li> Keeping control of the relationship:</li></ul>taking responsibility for the project<br />participate:<br />knowledge transfer, training<br />control<br />communicate:<br />provide feedback, deal with issues<br /> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  7. 7. Selecting a vendor<br /><ul><li> Measuring success, handling failures:</li></ul>saved costs<br />new tools, functionality, performance<br />processes function without major involvement <br />of the management team<br />decreased time for management/communication<br />customer satisfaction<br /> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  8. 8. Applying effective outsourcing strategy<br /><ul><li> Focusing on outcomes:</li></ul> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  9. 9. Applying effective outsourcing strategy<br /><ul><li> Monitoring the development cycle:
  10. 10. receiving end-user feedback
  11. 11. converting it into new requirements / bug reports
  12. 12. tracking the status via:
  13. 13. reports
  14. 14. reviews
  15. 15. meetings</li></ul> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  16. 16. Managing risks<br /> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  17. 17. Managing risks<br /><ul><li> Risk categories:</li></ul>operational<br />strategic<br />legal<br />financial<br /> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  18. 18. Managing risks<br /><ul><li> Risks mitigations:</li></ul>Control the process:<br /><ul><li> make sure the processes are integrated
  19. 19. communicate regularly
  20. 20. maintain formal specifications
  21. 21. receive and analyze reports
  22. 22. conduct reviews / provide feedback</li></ul>Measure the deliverables:<br /><ul><li> quality
  23. 23. timeliness
  24. 24. skills and capabilities</li></ul>Adjust the contract:<br /><ul><li> test possible scenarios
  25. 25. introduce incentives and penalties
  26. 26. share risks and rewards</li></ul>Utilize technology:<br /><ul><li> tools for tracking communication
  27. 27. automated tools for tracking task
  28. 28. tools for measuring progress/performance</li></ul>Manage knowledgebase:<br /><ul><li> technical documentation
  29. 29. knowledge transfer within the teams</li></ul>manage<br />risks<br />measure<br />control<br />adjust<br />utilize<br /> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  30. 30. Signing service level agreement<br /><ul><li> Focusing on outsourcing goals and objectives:
  31. 31. all vital terms and conditions should be reflected in the Service Level Agreement
  32. 32. take into account known issues
  33. 33. be clear on the assumptions you are making</li></ul> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  34. 34. Signing service level agreement<br /><ul><li> Measuring performance:
  35. 35. agree on a clear performance metrics
  36. 36. choose pricing model which reflects performance improvement
  37. 37. introduce incentives for ideas and solutions which result in performance improvements
  38. 38. include penalties
  39. 39. Defining processes and practices:
  40. 40. make sure the processes and procedures are flexible enough
  41. 41. business specific aspects should be taken into account when defining processes</li></ul> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  42. 42. Signing service level agreement<br /><ul><li> Knowledge and product data transfer aspect:
  43. 43. the mitigation strategy in case the team member leaves should be in place
  44. 44. the transition strategy in case of switching to another provider:</li></ul>data relocation procedures<br />code stored on the <br />client side<br /> technology corresponds the project tasks<br />documented code<br />architecture addresses functional and non-functional requirements<br /><ul><li>security aspect:
  45. 45. access to logs, backup policies
  46. 46. modular access to the project data
  47. 47. access levels defined for every team member</li></ul> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  48. 48. Signing service level agreement<br /><ul><li> Evolution of technology and services:
  49. 49. new technologies on the market
  50. 50. a need in newer equipment
  51. 51. training on new technology trends
  52. 52. reviewing the pricing model</li></ul> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  53. 53. Signing service level agreement<br /><ul><li> Client-vendor relationships:</li></ul>both parties should be responsible for risks within their control<br /><ul><li>spread the responsibility
  54. 54. possible changes and improvements on both sides
  55. 55. additional costs :
  56. 56. training
  57. 57. meetings
  58. 58. effective collaboration model:
  59. 59. onsite and offsite team structure
  60. 60. equipment
  61. 61. need in new services</li></ul> www.softheme.com»Outsourcing to Softheme™Trends in Software Outsourcing: Best Practices <br />
  62. 62. Thank you!<br />Questions???->info@softheme.com<br />2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions<br />www.softheme.com»Outsourcing to Softheme™<br />

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