This document discusses strategies for outsourcing a strategic software development project. It recommends taking an iterative approach focused on discovering business needs and generating value, rather than predefining requirements or budget. Specifically, it advises starting with a discovery phase to understand context before defining solutions, prioritizing small goals to get early feedback, and using agile methodologies like user testing and test-driven development.

1. OUTSOURCING A STRATEGIC SOFTWARE DEVELOPMENT PROJECT
BUY DIFFERENT

2. ANDREA
BANDERA
• Product development
manager & traveler
• @dottorbabba

4. STRATEGY
KEY PROCESSES
IT OPERATION
Company’s responsibility
Outsourcer’s responsibility
STRATEGY
KEY PROCESSES
IT OPERATION
STRATEGY
KEY PROCESSES
IT OPERATION
PAST NOW

5. STRATEGIC PROJECT
• i.e. new software product, internet service or even core
process redesign
• not standard (usually even not existing) solutions
• responsive to market evolution
• medium to long term projects (6 months-2 years)
• time to market is a critical success factor

6. SUPPLIER SELECTION

7. HOW TO ALIGN BUSINESS VALUE
WITH PROJECT DELIVERY?

8. Testing automation
Lean project management
Agile methodologies
Continuous improvement
Domain driven design
Behavior driven development
Test driven development
Continuous integration
Continuous delivery
User centric design
Minimum viable product
UX design
Continuous learning

9. HOW TO REWARD
THESE ASPECTS?

10. • Detailed functional specifications

11. • Detailed functional specifications
• Challenging time constraints

12. • Detailed functional specifications
• Challenging time constraints
• PRICE NEGOTIATION TO DEATH!!!

13. • Detailed functional specifications
• Challenging time constraints
• PRICE NEGOTIATION TO DEATH!!!

14. FAI L #1
IT FOCUS ON HOW AND
NOT WHY
It doesn’t make clear what is the business value

15. FAI L #2
IT ANTICIPATES
DECISIONS
Typically lowering the generated value and increasing the risk of failure
because it ignores the learning value emerging from implementation

16. FAI L #3
IT IGNORES THE
UNEXPECTED
Reacting badly and making unrealistic assumptions about time

17. FAI L #4
IT DOESN’T PUT
BUSINESS VALUE FIRST
Considering the price the most critical success factor

18. FAI L #5
IT MAKES WRONG ASSUMPTIONS
ON SOFTWARE LIFECYCLE
Underestimating the importance of structural ability to evolve based on
business changes

20. INTRODUCE THE
CONTEXT F I R S T

21. WHAT LEADS DECISION MAKING
THE REASONS WHY

22. HOW DO YOU MEASURE
YOUR GOALS
Business KPIs are not the project KPIs! They are useful for a more value
driven solution

23. CONSTRAINTS
Data migration, integrations, regulatory requirements…

24. CHANGE THE WAY YOU
SPEND YOUR MONEY

25. ADVICE #1
DO NOT DEFINE THE MONEY TO
SPEND AT THE BEGINNING OF A
PROJECT
Just define the spending capacity of the agreement

26. ADVICE #2
COMMIT YOUR MONEY ON SMALL
AND WELL-DEFINED GOALS
In order to get feedback about generated value as soon as possible and
then take a decision on what it’s worth investing

27. THE PROCESS MATTERS

28. ADVICE #3
START WITH A
DISCOVERY PHASE
Not a functional analysis because the supplier must well understand the
project context to define a value driven solution

29. WHAT A
DISCOVERY PHASE
I S ?
• It’s a project starting phase
usually lasting for few days or for
few weeks
• It’s the first small and well-defined
goal on which you
commit your money
• It’s an “all in a room” co-creation
work where knowledge emerges
and is shared between customer
and supplier (and usually also
among people from the same
company)

30. THE DISCOVERY JOURNEY
• Current value proposition
• Short/Long term vision and key drivers and anchors
• Key business and technical objectives and priorities
• Involved business workflows
• Customers and support team
• IT processes and architecture (setup, maintenance and support)
• Derive candidate initiatives and prioritize
• UX review
• Scenarios and roadmap

32. ADVICE #4
PRIORITIZE
Take just one decision: what’s next step?

33. ADVICE #5
CLAIM FOR AN ITERATIVE AND
INCREMENTAL APPROACH
Short iterations give feedback asap on your decisions.
Delay commitment until the last responsible moment, that is, the moment
at which failing to make a decision eliminates an important alternative

34. ADVICE #6
USER CENTERED
DESIGN IS A MUST
Users feedback must be at the heart of solution definition

35. LOOK FOR QUALITY IN
SOFTWARE DEVELOPMENT

36. ADVICE #7
TESTS ARE AN ASSET
Testability also keeps architecture simple and leads to better technology
choices

37. ADVICE #8
NO TESTING AND DELIVERY
AUTOMATION? NO PARTY
It’s not about speed… it’s about change management

38. WHAT YOU GET
• A value driven supplier
• Improve the ROI reducing the waste and managing
the change
• Build a trusted relationship little by little based on
experience
• Focus on the relationship and not just the contract

39. “a good beginning makes a good end”
–LOUIS L'AMOUR