Odc setup

Nor-link
sales@nor-link.com
ODC setup & Operations
Off-shore development center
(ODC)
Setup & Operations
@ INDIA
by
Nor-link IT Solutions
INDIA
Slide: 1 of 16
srikanth@Nor-link.com
NOR-LINK

Nor-link
sales@nor-link.com
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 Nor-link's capabilities, methodologies and approach in setting up ODC for the clients, evolved over last 10 years.
NOR-LINK
Slide: 2 of 16

Nor-link
sales@nor-link.com
About us
NOR-LINK
Slide: 3 of 16
Key People:
Mr. Srikanth : 12+ years in software industry, managing long term and large projects, business administration & managing ODCs
Business Domains:
ODC setup & operations, E-governance, Accounting, Passenger Logistics, e-Learning modules.
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
Established in: June 2004 at Pune (130 kms from Mumbai)
Team size: 50+ (across the group companies)

Nor-link
sales@nor-link.com
About us -Experience
NOR-LINK
Slide: 4 of 16
Promon AS, Norway
Presist AS, Norway
Thane Municipal Corporation, India
NMBM,
South Africa

Nor-link
sales@nor-link.com
Offshoring Advantages
NOR-LINK
Slide: 5 of 16
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.
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.

Nor-link
sales@nor-link.com
Offshoring Advantages (continued...)
NOR-LINK
Slide: 6 of 16
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”.

Nor-link
sales@nor-link.com
Offshoring Challenges
NOR-LINK
Slide: 7 of 16
Off shoring 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 Nor-link who is experienced in handling the cultural gaps and of-course competent to handle software setup of your desired team size.
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.

Nor-link
sales@nor-link.com
Offshoring Challenges(continued...)
NOR-LINK
Slide: 8 of 16
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.
Nor-link strongly recommends short visits of 1 or 2 weeks per quarter from both sides to establish an association between team.
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 Nor-link, we strongly believe in “speak to communicate” and then “email to document” rather than using tools like email or Bugzilla to Communicate !

Nor-link
sales@nor-link.com
Offshoring Challenges(continued...)
NOR-LINK
Slide: 9 of 16
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 Nor-link “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”.
Agile project management methodology “SCRUM” is used by Nor- link 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”.

Nor-link
sales@nor-link.com
Offshoring Maturity Model (OMM)
NOR-LINK
Slide: 10 of 16
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.
Nor-link 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.
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)
2. Captive setup: In this step client establishes offshore company and gets a dedicated team leased out from Nor-link. Client has major involvement in all technical and project management activities.
This is a hand-holding phase where client is closely supported by Nor-link. Nor-link also helps client in legal and administrative areas of company formation, accounting and local registrations.

Nor-link
sales@nor-link.com
NOR-LINK
Slide: 11 of 16
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 Nor- link 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
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 Nor-link in all the areas as per their need.
The support from Nor-link 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.

Nor-link
sales@nor-link.com
NOR-LINK
Slide: 12 of 16
The table below provides a quick overview of OMM providing various activities and the dependency of client on Nor-link in each phase.
Sr #
Activities
Offshoring
Captive
Supported
Independent
1
Recruitment
Nor-link
Nor-link
Joint
Optional
2
Project Management
Nor-link
Joint
Joint
Optional
3
Technical and QA
Nor-link
Joint
Optional
Optional
4
Delivery commitments
Nor-link
Joint
Client
Client
5
Legal & Administration
Nor-link
Joint
Joint
Client
1-2 years to move from Phase 1 to Phase 4
Optional = client can take help of Nor-link on need basis

Nor-link
sales@nor-link.com
Engagement models
NOR-LINK
Slide: 13 of 16
Nor-link will help client willing to setup ODC in India. Various engagement models are:
1. Advisory model:
Nor-link 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)

Nor-link
sales@nor-link.com
Engagement models
NOR-LINK
Slide: 14 of 16
2. Turn-key model:
Nor-link provides complete end-to-end ownership of the ODC setup for client from offshoring phase to independent phase. This is achieved in following steps:
Kickoff:
Typically we start the project work immediately using Nor-link'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 Nor-link.
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.
Turn-key model continued....

Nor-link
sales@nor-link.com
Engagement models
NOR-LINK
Slide: 15 of 16
2. Turn-key model:
Last step in this model is:
Handover:
Typically over a period of 12 to 18 months client team gains confidence and is ready to handle operations independently.
Nor-link then phases out its directors from client company and goes in service provider mode, where client can still take services from Nor-link on need basis.

Nor-link
sales@nor-link.com
Next steps.....
NOR-LINK
Slide: 16 of 16
Send us your high level requirements on email to
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.
Thank you

Odc setup

More Related Content

What's hot

Viewers also liked

Similar to Odc setup

Recently uploaded

Odc setup