Sangsoft has developed the Offshoring Maturity model (mainly for software development) that helps the client to understand the steps to go from novice to successful managing offshore development team. This is helpful to small and medium scale companies which can greatly benefit from the offshoring, These companies have little or no exposure to offshoring and the challenges involved in it. The model provides them a step-by-step process to start with limited exposure and scale up as the business grows.

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Offshoring Maturity Model SangSoft Servicessatish@sangsoft.in
Offshoring Maturity Model
(OMM)
by
Sanganak Software Services
India

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Offshoring Maturity Model SangSoft Servicessatish@sangsoft.in
Offshore development
Offshore development needs completely different approach and
temperament as compared to a fully owned, in-house development.
This can be easily compared to “auto-ancillary vendors” where the
vendor is a legally (and commercially) independent entity however
needs to inculcate the quality and culture values of the parent
company for generating the best results.
We have been involved in setting up and managing the ODCs for last
10 + years and have come up with how an organization willing to do
offshoring should develop its “Offshoring Maturity” thru four steps.

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Offshoring Maturity Model SangSoft Servicessatish@sangsoft.in
Offshoring Maturity Model (OMM)
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.
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 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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Offshoring Maturity Model SangSoft Servicessatish@sangsoft.in
Offshoring Maturity Model (OMM)
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
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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Offshoring Maturity Model SangSoft Servicessatish@sangsoft.in
Sr # Activities Offshoring Captive Supported Independent
1 Recruitment SangSoft SangSoft Joint Optional
2 Project Management SangSoft Joint Joint Optional
3 Technical and QA SangSoft Joint Optional Optional
4 Delivery commitments SangSoft Joint Client Client
5 Legal & Administration SangSoft Joint Joint Client
Offshoring Maturity Model (OMM)
The table below provides a quick overview of OMM providing various activities
and the dependency of client on SangSoft in each phase.
Optional = client can take help of SangSoft on need basis
1-2 years to move from Phase 1 to Phase 4

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Offshoring Maturity Model SangSoft Servicessatish@sangsoft.in
Engagement models
SangSoft will help client willing to setup ODC in India. Various
engagement models are:
1. 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)

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Offshoring Maturity Model SangSoft Servicessatish@sangsoft.in
Engaugement models
2. 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:
Turn-key model continued....

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.

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.

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Offshoring Maturity Model SangSoft Servicessatish@sangsoft.in
Engagement models

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.
2. Turn-key model:
Last step in this model is:

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Offshoring Maturity Model SangSoft Servicessatish@sangsoft.in
Next steps.....
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.
Thank you