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 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

    1. 1. Offshore Product Development TrendsSymphony ServicesIntellect UK 2009<br />February 24, 2009<br />
    2. 2. Symphony ServicesEngineering Successful Companies<br />Commercial-Grade Software(ISVs and e-business)<br />Complete Product Development Lifecycle capabilities<br />Embedded Systems and Software<br />Complete Product Development Lifecycle capabilities<br />Engineering <br />Services<br />CAD/CAM<br />Mechanical Design<br />Fluid Dynamics<br />
    3. 3. OPD is not ITO<br />Trends and Observations<br />
    4. 4. Different Mission – Understanding what drives Product companies is the key<br />IP Protection<br />Time = Release Dates<br />Customer Facing v. Internal Applications<br />Product Development is NOT IT Services<br />Release Date<br />Budget<br />MRD/PRD<br />IP Protection Principles<br />Development = ƒ(Release Date, PRD, R&D budget)<br />
    5. 5. Different Mission – Understanding what drives Product companies is the key<br />IP Protection<br />Time = Release Dates<br />Customer Facing v. Internal Applications<br />Different Skills <br />Product Development Rigor<br />Background & Quality of Talent<br />Dedicated Development teams<br />Non-transient<br />Product Development is NOT IT Services<br />EVP Engineering<br />Head of Dev<br />Head of QA<br />Head of Support<br />GOC Mgr<br />GOC dovetails into the Engineering Department<br />QA Manager<br />Dev Mgr 1<br />Dev Mgr 2<br />Software <br />Architect<br />QA Leads<br />Config<br /> Support<br />Dev Leads<br />Dev Leads<br />Sr Dev Engrs<br />Sr Dev Engrs<br />Sr QA Engr<br />Dev Engrs<br />Dev Engrs<br />Access to Centers of Excellence/Practice Lines for troubleshooting and/or project-based needs<br />QA Engr<br />CoEs / QMS / HR & Recruitment / IT / Finance<br />Symphony GOC is an extension of our client’s engineering organization<br />
    6. 6. Different Mission – Understanding what drives Product companies is the key<br />IP Protection<br />Time = Release Dates<br />Customer Facing v. Internal Applications<br />Different Skills <br />Product Development Rigor<br />Background & Quality of Talent<br />Dedicated Development teams<br />Non-transient<br />Rise of Specialized Providers<br />100% Focus on Product Development<br />Different Operational Models<br />Different Contracting Models<br />Product Development is NOT IT Services<br />If you are looking for Product Development expertise and you are talking to an ITO provider then you are both in the wrong meeting!<br />
    7. 7. OPD is not ITO<br />Impact of the Economy on Outsourcing<br />Trends and Observations<br />
    8. 8. Impact of the Economy – Well $100B is just worth a little bit more today… Cash is King<br /><ul><li>Last Year RBS bought ABN-Amro for $100B
    9. 9. Today $100B would buy…</li></ul>$100B<br />$100B<br />
    10. 10. Impact of the Economy<br />Deer-in-the-Headlights phase has passed <br />Non-Decision Phase conserved cash<br />But the Economy has created a Call-to-Action<br />McKinsey & Duke Offshoring Research Network recommend to Invest in R&D in a Downturn<br />Speed and costs limit new captive options<br />However, European ISV’s are slow to Adopt Global R&D Strategies<br />60% not leveraging offshore<br />10% have captives<br />What Are You Doing Today?<br />What Will You Do?<br />Source: Zinnov Management Consulting Pvt. Ltd.<br />
    11. 11. OPD is not ITO<br />Impact of the Economy on Outsourcing<br />The Productivity Challenge<br />Trends and Observations<br />
    12. 12. Clients should not experience short term job losses and a less effective workforce<br />11<br />Good Partners ensure Effectiveness and Productivity through a Metrics driven approach<br />
    13. 13. OPD is not ITO<br />Impact of the Economy on Outsourcing<br />The Productivity Challenge<br />Rise of Performance-based Contracting<br />Trends and Observations<br />12<br />
    14. 14. Recent Events Change the Way People Look at Outsourcing Contracts<br />Economic Crisis is launching a new wave of competitive pressures for providers<br />Satyam scandal fuels the flames for more contract control<br />Outcome-based Contracting<br />Moves dialogue away from rates (lowest-common-denominator) to business alignment discussion<br />SLA based contracts and output based pricing<br />Can be a win-win for both provider and customer if structured correctly<br />Expect Greater Flexibility of Contracting Vehicles<br />Balance “great terms” versus profitability and sustainability for your engagement<br />The Rise of Performance-based Contracts<br />13<br />
    15. 15. OPD is not ITO<br />Impact of the Economy on Outsourcing<br />The Productivity Challenge<br />Rise of Performance-based Contracting<br />Captives Beware<br />Trends and Observations<br />14<br />
    16. 16. Captives are falling short of the mark – especially SME launched captives<br />Scale is critical to financial effectiveness. Sub-scale captives encounter<br />30% - 50% Lower Productivity versus onshore teams<br />35% Higher Cost than working with a provider<br />Difficulty with Recruiting and Retention<br />While many analysts peg the magic number at 500 or more, even at 200, almost ¾ of captives don’t pass muster<br />Market Correction: 70% reduction of new captive launches over past 4 years<br />60% of Captives are failing according to Forrester Research<br />Source: Zinnov Management Consulting Pvt. Ltd.<br />
    17. 17. About Symphony - Markets Served and Sample Clients<br />Enterprise Software<br />Storage & ILM<br />Web/E-Commerce<br />Telecom & Mobile<br />High Tech Mfg<br />Service <br />Providers<br />
    18. 18. Symphony Services at a Glance<br />Exceptional Delivery Record<br />Commercial Software Engineering DNA & Focus<br />More than 150 clients<br />More than 300 products under management<br />1,000+ product releases delivered in both 2007 & 2008<br />1:1 Onshore/Offshore productivity<br />Top-notch Staff and Quality Standards<br /><ul><li>World-class talent with over 3,500 employees
    19. 19. Process maturity rated at CMMI Level 4
    20. 20. 6 Sigma process proficiency
    21. 21. Strong IP Protection: ISO 27001 certified
    22. 22. ITIL Compliant (ISO 20000) and SAS70 Certified infrastructure
    23. 23. Certified Agile Development personnel
    24. 24. Approximately 600,000 sq ft across 6 delivery centers</li></ul>Industry Leadership<br /><ul><li>Largest Pure-Play Product Engineering Firm
    25. 25. Named to Global Service 100 three consecutive years
    26. 26. Ranked #1 Engineering Outsourcing Provider two years in a row and “Top 50 Best Managed” in 2007 by Black Book of Outsourcing </li></li></ul><li>Thank You For Your Time<br />David J. Carpini<br />Managing Director – International Business Unit<br />Symphony Services<br />O: +44 (0) 1483 245 457<br />M: +44 (0) 7825 970 800<br />

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