The document discusses challenges with agile offshoring based on the author's experience. Some key challenges identified are governance, people issues like attrition, building an effective team across cultures, cultural differences, and ensuring transparency with partners. Recommendations include focusing on standard systems instead of core work, starting simple to establish processes, taking a long term view beyond 1 year, enforcing risk management processes, understanding different cultures, and prioritizing processes and tools when offshoring to enable effective interactions.

1. 1
My challenges with Agile
offshoring so far
2013-05-07
Ove Holmberg, OHC

2. 2
Me
• Developer, project manager, agile coach.
• Pragmatic agile evangelist since 2002.
• As a client: worked 2 years with a Agile PMO
setup together with a russian partner. Fail!
• As a vendor: worked 1,5 years with delivery of e-
com and CMS projects to Scandinavia from
India. Fail!
• Today: Setting up the biggest e-com site in
Europe with Agile offshoring. To be continued…

3. 3
Agile
1. Working software over comprehensive
documentation
2. Customer collaboration over contract
negotiation
3. Responding to change over following a plan
4. Individuals and interactions over
processes and tools

4. 4
Why agility?
• Speed (Time to market)
– MVP
– Fail early (fast and wrong)
• Business involvment
• Releases creativity
• Focus on value

5. 5
Offshoring
• Wikipedia: Offshoring is defined as the
movement of a business process done at
a company in one country to the same or
another company in another, different
country.

6. 6
Why offshoring?
• Reduced cost
• Avoid repetitive work
• Focus on core
• Flexible people planning
• Speed to market
• Access to experts

7. 7
Key challenges with AO
1. Governance
2. People
3. Team
4. Culture
5. Partner

8. 8
Challenge 1: Governance
• Do
– Reports with KPIs
– RAG automation
– Meetings
– Travel
– Coaching (Audits)
– Doubling
– Repeat!
• KPI: Amber is back to green within one week.
Beware:
The fear of red
Note:
Gov is increased
by 200% if
offshoring
Example:
The 10 new
developers

9. 9
Challenge 2: People
• Watch out for
– 20% attrition
– Sudden floating holidays
– Trainees
– Visa problems
– Annual appraisals
– Marriages
– Titles
– Etiquette
– Loyalty
• Communication throughput 20%
• KPI: <10% resignations
Example:
The manager
I sent home

10. 10
Challenge 3: Team
• Sports in India
• 10% rule
• Do: Project understanding (chartering)
– Vision
– Expectations
– Objectives, effects
– Priorities
• KPI: From Forming to Performing within 6
months.
Example:
The Indian
team board
Example:
The alibi coach
In China

11. 11
Challenge 4: Culture
• The genus perspective challenge
• Do: Invest time in culture
• KPI: Hofstaede improvement…
Example:
The female
Coach in Ukraine
Example:
The operations
Team in Dalsland
Example:
The Boeing
dilemma

12. 12
Hofstede cultural theory
PDI = Power Distance
IDV = Individualism
MAS = Masculinity
UAI = Uncertinity avoidance
LTO = Long term orientation

13. 13
Challenge 5: The partner
• Do: Use more than 1 partner
• Negative: Them, the russians
• Positive: WE
• Discipline/good habits
• Do: Delivery Focus Areas survey
• KPI: Transparency in reports and
upcoming issues. Beware:
CMMI and
Agile in the
Same sales
deck..
Example:
The russian
team that
disappeared
Beware:
Corruption

14. 14
Do: Iterative risk management
• Daily focus on top risk
• Weekly focus on top 5 risks
• Monthly focus on top 10 risks
• Include risks in retro and planning
• Include risks in RAG definition
• A common learning risk log:
Title Descr Mitigation Challenge Std Culture Work log Impact Probab. Rank Resp
The bus May hit a
key person
Work 24*7,
go by taxi.
People Yes Masculinity Own
driver
hired
50% 10% 5% John

15. 15
Recommendations
• Don’t outsource core stuff such as customer facing and complex
business focused systems - do standard systems.
• Don’t start with a complex project – do a simple with an
objective on the process.
• Don’t expect enterprise ROI on short term (1 year) basis - focus
on sustainability.
• Don’t be reactive – enforce a iterative risk
management process.
• Don’t say them and us – invest in understanding
each others cultures.

16. 16
The offshoring amendment to Agile
• Individuals and interactions over
processes and tools
• Processes and tools first – then
Individuals and interactions

17. 17
• Twitter: @ovehol
• Email: ove.holmberg@gmail.com
• Slideshare: slideshare.net/oveholmberg
• Feedback please!
• Questions…
Thanks for listening!