ODC setup services

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Sanganak Software
Services IndiaOffshoring Maturity Model (OMM)
Off-shore development center (ODC) Setup & Operations @ India | satish@sangsoft.in | 9970170340
Sanganak Software Services India
Off-shore development center (ODC)
Setup & Operations @ India by

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Sanganak Software
Off-shore development center (ODC) Setup & Operations @ India | satish@sangsoft.in | Skype: satish.bhagwat
Objective
This presentation is intended to provide an overview
of various options for off-shoring activities mainly
ones from the IT field to India.
It discusses various ODC models, their advantages and
limitations. It also provides some insight into
challenges faced and ways to tackle them in setting
up and managing ODC.
Of-course, it also provides details of SangSoft's
capabilities, methodologies and approach in setting
up ODC for the clients, evolved over last 10 years.

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Sanganak Software
About us
Established in: June 2013 at Pune (130 kms from Mumbai)
Team size: 20+ (across the group companies)
Technical skills:
Desktop and web-applications using .NET, php and Java.
Database development and admin for Oracle, SQL server
and MySQL, Mobile application for Android and iPhone
Business Domains:
ODC setup & operations, E-governance, Accounting,
Passenger Logistics, e-Learning modules.
Key People:
Satish Bhagwat: 20+ years in software industry &
managing ODCs

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Sanganak Software
Comjell School Management, Germany
International Customer Loyalty Program,UK
NMBM, South Africa
Thane Municipal Corporation, India
Swayam Shikhan Prayog, India
About us - Experience

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Sanganak Software
Offshoring of software development and support work has become a regular
working model for companies of all sizes in last few years.
Offshoring needs different management approach than that of “local model” to
reap maximum benefits from it. Few key advantages of the offshoring model are:
1. Cost benefit:
The top-most to be recognized, the driving factor
for most offshoring projects. In India the costs
for offices, infrastructure and the staff are
significantly less, which leads to substantial cost
savings.
Offshoring Advantages

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Sanganak Software
2. Skilled Resources:
Secondly, availability of skilled people with
relevant experience and communication skills.
Indian IT industry has majorly grown on offshoring
and hence skills not just technical but also for
process competency for Offshoring model are
available amply.

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Sanganak Software
3. Faster Turn-around:
In a matured offshoring setup, different time-zones of
the offshore and on-site offices is used effectively to
improve the productivity.
The two teams can work in “relay” model, where
offshore team hands over the daily work to on-shore
team for QA/feedback.
This is also sometimes termed as “follow the Sun”
methodology.
Also more resources can be deployed on the need basis,
for specific period, which greatly improves the project
time-lines and client can achieve faster “time to market”.

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Sanganak Software
Offshoring challenges are typically more of legal and HR related and less of
technical. These are mainly due to cultural differences between the client and
offshore team.
It is therefore important to identify an offshore partner like SangSoft who is
experienced in handling the cultural gaps and of-course competent to handle
software setup of your desired team size.
Offshoring Challenges

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Sanganak Software
Cultural differences:
This key issue can lead to under-productive team
resulting into delays and loosing the offshoring cost
benefits
These are necessarily small issues like language,
cultural habits, leaves, small incentives and others
typically resulting due to cultural differences.
A competent offshore partner takes care of these
by appropriate culture orientation for offshore
team as well as the client.
Offshoring Challenges (continued...)

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Sanganak Software
Communication with off-shore team:
Regular communication with offshore team
happens over emails, audio calls and once in a
while video calls, which are obviously less
effective than across-table communication
which poses Another major issue that can lead
to delays.
SangSoft strongly recommends short visits of
1 or 2 weeks per quarter from both sides to
establish an association between team.

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Sanganak Software
Communication with off-shore team:
cont....
Typically we plan for a kick-off meeting where
client's product manager visits India for one week
of brain-storming and initial planning. Afterward
off-shore team members can visit client during
implementation phases.
At SangSoft, we strongly believe in “speak to
communicate” and then “email to document”
rather than using tools like email or Bugzilla to
Communicate !

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Sanganak Software
Status tracking:
Another major issue typically faced by client is
tracking of current status. Unlike “local model”
client can not SEE the team and it is hard to
know how things are moving, what is the
general mood etc. which increases client's
anxiety.
At SangSoft “Daily” status update report for each
project is prepared and sent by offshore team
lead to ALL stakeholders involved to ensure
each member is on the “same page”.

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Sanganak Software
Status tracking: cont.…
Agile project management methodology
“SCRUM” is used by SangSoft which provides an
incremental delivery (typically weekly) of the
software assuring the client of the progress on
regular basis.
SCRUM also provides great transparency allowing
client to know what is achieved and what are
the challenges on every-day basis allowing him
to step in if needed “sooner” than “later”.

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Sanganak Software
Offshoring maturity typically can be seen as how much control the client has over
it's development team and of-course how effectively it achieves the desired
business goals.
SangSoft proposes a four phase migration plan that a client can adopt and establish
it's own independent offshore development center in typically in 1 to 2 years.
Offshoring Maturity Model (OMM)

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Sanganak Software
1. Offshoring:
This is first phase where client simply gives out
the work to offshoring partner and has
minimum involvement in offshore team
management.
(optional, client can start with step 2 directly)

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Sanganak Software
2. Captive setup:
In this step client establishes offshore company and gets a
dedicated team leased out from SangSoft. Client has major
involvement in all technical and project management
activities.
This is a hand-holding phase where client is closely
supported by SangSoft. SangSoft also helps client in legal
and administrative areas of company formation, accounting
and local registrations.

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Sanganak Software
3. Supported phase:
In this phase client starts taking more of the ownership in
core technical and project management areas, moving key
resources on their payroll etc. Client takes support from
SangSoft more on administrative and HR front.
This phase is optional and typically can be of 3 to 6
months where client can do self-assessment of his
readiness for phase 4

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Sanganak Software
4. Independent phase:
This step is taken once the client is confident in taking
the complete ownership of the ODC. Client can continue
to take support from SangSoft in all the areas as per
their need.
The support from SangSoft will be more of random need
based service provisioning like recruitment assistance,
QA or developers on contract for short term etc.
Administrative support also can be provided on need
basis.

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Sanganak Software
Activities Offshoring
Recruitment SangSoft
Project Management SangSoft
Technical and QA SangSoft
Delivery
commitments
SangSoft
Legal &
Administration
SangSoft
The table below provides a quick overview of OMM providing various activities and the
dependency of client on SangSoft in each phase.

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Sanganak Software
Activities Offshoring Captive
Recruitment SangSoft SangSoft
Project Management SangSoft Joint
Technical and QA SangSoft Joint
Delivery
commitments
SangSoft Joint
Legal &
Administration
SangSoft Joint

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Sanganak Software
Activities Offshoring Captive Supported
Recruitment SangSoft SangSoft Joint
Project Management SangSoft Joint Joint
Technical and QA SangSoft Joint Need based
Delivery
commitments
SangSoft Joint Client
Legal &
Administration
SangSoft Joint Joint

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Sanganak Software
Activities Offshoring Captive Supported Independent
Recruitment SangSoft SangSoft Joint Need based
Project Management SangSoft Joint Joint Need based
Technical and QA SangSoft Joint Need based Need based
Delivery
commitments
SangSoft Joint Client Client
Legal &
Administration
SangSoft Joint Joint Client
1-2 years to move
from Phase 1 to 4

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Sanganak Software
Engagement models
SangSoft will help client willing to setup ODC
in India. Various engagement models are:
Advisory model
Turn-key model

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Sanganak Software
Advisory model:
SangSoft provides pure advisory support to client during the setup
and running the ODC. Typically we provide an executive director
who is responsible for assisting the client mainly in following areas:
• Company formation and other legal registration.
• Identifying suitable offices
• Identifying recruitment channels (HR agency or HR team or both)
• Setting up HR processes (Salaries, leave and contracting norms)
• Setting up project management and reporting process (SCRUM)
Engagement models

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Sanganak Software
Turn-key model:
SangSoft provides complete end-to-end ownership of
the ODC setup for client from offshoring phase to
independent phase. This is achieved in following
steps:
Engagement models

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Sanganak Software
Turn-key model:
Step 01 : Kickoff:
Typically we start the project work immediately using
SangSoft's team and offices there-by kicking off the
technical work. Parallely we start admin activities of
company formation with one or more executive
directors from SangSoft.
Engagement models

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Sanganak Software
Turn-key model:
Step 02 : Manage:
Identify and hire team & offices and set up software
and admin processes which are the key to success.
The onsite and offshore teams are co-ordinated and
trained for offshore model for 12 to 18 months. HR
and admin processes are stabilized with client's
involvement.
Engagement models

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Sanganak Software
Turn-key model:
•Step 03 : Handover:
Typically over a period of 12 to 18 months client team
gains confidence and is ready to handle operations
independently.
•SangSoft then phases out its directors from client
company and goes in service provider mode, where
client can still take services from SangSoft on need
basis.
Dummy-pic
Sangsoft img will be better
Engagement models

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Sanganak Software
Next steps...
Thank you
Send us your high level requirements on email to satish@sangsoft.in and we will
get in touch with you with for taking it further.
We will provide you FREE ODC COSTING spreadsheet that will help you perform
“what-if” analysis based on the technology, team size and engagement model.
Sanganak Software Services India
satish@sangsoft.in |skype: satish.bhagwat

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