Demystifying outsourced product development


Published on

Independent software vendors are facing increased challenges, study shows that a significant number of software product corporations fail, the reason behind that are many but this presentation tries to explore one of the significant challenge that needs to be addressed

Published in: Technology
1 Comment
  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Demystifying outsourced product development

  1. 1. Demystifying Outsourced Product Development Mrinal Singh Skype: mrinalasingh
  2. 2. Outsourced Innovation One single individual can not be an expert of many fields so collaboration is important and outsourcing should be considered a subset of collaboration
  3. 3. Introductions One of the World’s Largest pharmaceutical corporation Leading drug development services The world's #1 software company A fast growing IT Solutions Company
  4. 4.  Eli Lilly has partnered with Covance for new Molecule discovery  Mindtree has undertaken development work for Microsoft Azure Services Platform
  5. 5. Independent Software Vendors spend 18-20% of their revenues on R&D  Some corporations have undertaken 100% of the development through other providers but up to 25% of the development process can be easily outsourced.
  6. 6. : Agenda 1) Share thoughts on potential roadmap for outsourced product development services 2) Recommend an Approach to outsourcing innovation efforts based on what has been learned from experience 3) Offer Contact with someone who loves to theorize, experiment, discuss, debate, pontificate and mutually grow through exchanging knowledge
  7. 7.  Share  Approach plans  Experience  Opportunity to connect with thought leaders in this field
  8. 8. Demystifying Outsourced Product Development Outsourcing Product Development: Why? “The best companies outsource to win, not to shrink.” ~Thomas Friedman, The World Is Flat
  9. 9. Demystifying Outsourced Product Development Four potential reasons to consider outsourcing: 1) Access to Technology and other Capabilities 2) Speed New Product Development cycle times 3) Minimize Business Risk 4) Internal Resource Alignment
  10. 10. Demystifying Outsourced Product Development It's not the “why” but “how” that is important
  11. 11. Demystifying Outsourced Product Development Data is of no use until it informs. Information is of no use until it makes you decisive. Decisions are of no use if they don't give results
  12. 12. Demystifying Outsourced Product Development Key Questions  What  Are the desired objectives from outsourcing?  Core competencies are needed?  Is the scope of the service that is being outsourced?  Is the expected outcome, has it been defined?  Are the risks  How is performance to be measured?  How will the risk be mitigated?
  13. 13. Demystifying Outsourced Product Development Brasstacks  Executive Sponsorship  Partner Selection Process  Partner Management Process  Project Initiation  Defining Development Teams  Development Metrics
  14. 14. Demystifying Outsourced Product Development Selecting an outsource partner What outsourcing model will be followed?  Turnkey  Resource Augmentation Based  Built Own Transfer  Joint Development  Other
  15. 15. Selecting an outsource partner (Contd)  Acumen Technical Customer/consumer Business People  Reputation (Ethical considerations, working style/culture)
  16. 16. Selecting an outsource partner (Contd) Sources to Consider: ∞ Outsourcing experience & proven customer satisfaction ∞ Formalized best practice processes ∞ Adequate numbers of appropriately skilled resources ∞ Relevant Domain / Technology Experience ∞ Financial viability ∞ Flexibility to adopt to your culture, processes ∞ The appropriate motivation to enhance your business
  17. 17. The U.S. Federal Aviation Administration spent $2.6 billion trying to upgrade its air-traffic-control system, only to cancel the project in 1994. Gridlocked skies are still with us today.
  18. 18. Demystifying Outsourced Product Development Outsourcing Product Development: When to involve external resources in the process?
  19. 19. Factors Affecting When to Involve External Resources  Resource Requirements of the project  Degree of Willingness to Share Confidential Information  Cost NDA’s and other contractual arrangements can mitigate both information-sharing risk and cost risk.
  20. 20. New Product Development (NPD) Cycle
  21. 21. Practice How to manage the Outsourcing in the NPD process?
  22. 22. How to manage the NPD process  Define: Goals Objectives Deliverables Communication process  Identify project stakeholders from both the sides  Undertake Knowledge transfer  Resource planning, organizing and tracking
  23. 23. Important! •Don’t underestimate the internal resource requirements Project management Knowledge transfer
  24. 24. Demystifying Outsourced Product Development Summary and Takeaway
  25. 25. Demystifying Outsourced Product Development Undertaking outsource product development if not planned and executed in the right manner is fraught with uncertainties at the minimum and risk of failure, the steps outlined earlier are not an option but a necessity. To summarize  Be Proactive: Do not wait for disaster to happen, plan thoroughly. It is important to not only understand your providers culture and processes but also to align both the corporations processes.  Identify the Goal: What is the objective of the outsourcing exercise, are you undertaking it to reduce cost, increase technology bandwidth, address resourcing constraints etc.  Define communication process: Frequent communication is important especially at the initiating point of an engagement , conventional software development process like Waterfall are not well suited for product development, newer methodologies like Agile have higher success rates, work with a provider that has executed projects leveraging this methodology
  26. 26. Please fill this form by clicking on the link below if you need any further information. To fill it out, visit: aGtfejJNelc5WjVYYUViQ1E6MQ
  27. 27. “It is not the answer that enlightens, but the question.” ~Eugene Ionesco