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Software Outsourcing


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Software Outsourcing

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Software Outsourcing

  1. 1. Welcome To Our Presentation 1
  2. 2. 2 Our group members are:- Name ID Meer Md Maksel BBA110204148 Md Tanvir Hossen BBA110204177 Tania Parvin BBA110204208
  3. 3. 3 Software Outsourcing
  4. 4. Introduction: 4 Information technology has become one of the fastest growing, fastest changing markets in the world. The demand to produce new or specialized software for specialized markets business, government or domestic use in ever increasing. For example, telecommunication, industry, which was founded on electro-mechanical genius, now, places more than 80% of the value of a switch in its software. In addition, the demand for new telecommunication service primarily based on software or supported or customized by software, Is increasing and growing more vital.
  5. 5. Cont…… 5 Outsourcing is a new term for an old practice and is not limited to the information technology world; it means contracting out work. We define software outsourcing as contracting out the development, planning management, training, maintenance or operation of software service, skills, products or applications.
  6. 6. Cont…. With outsourcing organizations aim to improve qualities of software product and service speed delivery times, and reduce cost. This is achieved through improving company focus gaining access to the needed expertise, sharing risk and cost, and re-using products and experience. Outsourcing has gone through many iterations and inventions. Some outsourcing contracts have been partially or fully reversed, citing an inability to execute strategy, lost transparency & control, onerous contractual models, a lack of competition, recurring costs, hidden costs, and so on 6
  7. 7. Definition: 7  In business, outsourcing is the contracting out of a business process to a third-party  Software Outsourcing in broad terms is a transfer of some business functions or components of business processes to an outside contractor. Software Outsourcing means a performing of specific tasks, business functions or business processes by outside organizations that usually fall out of the company's core competencies , however, but are crucial for the regular functioning of business.  Outsourcing is the procuring of services or products from an outside supplier or manufacturer in order to cut costs. Software Outsourcing, is the contracting out of IT service provision to one or more external organizations
  8. 8. 8 Issue in software outsourcing: Outsourcing software application development raises some technical and managerial issue which is different from the issues associated with pure in home development. This causes enough concern in some organizations to prevent them from taking full advantage of the opportunities and advantage offered by outsourcing.  Insurance: The outsourcer should have adequate public liability insurance against loss or liability through injury or damage.
  9. 9. Cont….  Control: 9 This covers control over the software engineering process and control over the final product. Control over the software development process is essential to maintaining control over the quality and other desirable properties of the product. There is danger that by outsourcing a product, and consequently surrendering some control over its development, the outsourcer can no longer guarantee properties such as security quality and confidentiality. Agreement and contract Terms need to clearly address this issue, but additional assurance may be required by the outsourcer that target for system properties, such as safety are met.
  10. 10. Cont…. 10  Outsourcing vendors Managing and coordinating: Many risks in software development are associated with the diversity of the participants and activities within the software life-cycle. The impact of outsourcing on these risks can be variable. The issues here are :  To ensure the availability and capacity of the vendor to carry out the collaborative development acts the critical times in the overall project plan;  To plan, dependencies in the project plan;  To monitor the states of the project, and all the outsourced components, so the adjustment to the project plan can be made or, if needed, corrective action can be taken.
  11. 11. Cont….  Trust and Assurance: Projects may be requiring trusted components; projects may require a security or a safety related component. If such a component is outsourcing then the outsourcer may wish to seek assurance that the component meets its safety or security requirement. The problem for the outsourcing is to obtain assurance that the outsourced component meets the required level of trustworthiness 11
  12. 12. Cont….  Flexibility in the Work Environment: 12 The teams working on your project need training and preparation, regardless of whether they're working at your onshore facility or for the offshore vendor. Many onshore teams have misperceptions about outsourcing and those concerns must be addressed very early in the project. You must thoroughly prepare your personnel for the changes that lie ahead in their work environment and ease their fears.
  13. 13. Cont…. 13  Analysis Cost-benefit: Offshore software development can save your company, significant costs, but probably not right away. Expect that it will take some time to fully realize the potential cost savings of outsourcing. Also, be aware of the costs that lie hidden in the evaluation and selection of a vendor, the transfer of your project overseas, your employees' transition to a new way of working, potential layoffs of onshore employees, and the time spent managing the project and communicating with the offshore team.
  14. 14. Cont…. 14  Intellectual Property Rights: Make sure that outsourcing doesn't make your business lose its invaluable proprietary and confidential business information. Insist that your trade secrets be bound by full confidentiality and shielded from misuses and abuse.  Roles and Responsibilities: Clearly define the roles and responsibilities of the onshore and offshore teams before the work begins. Both your business and the offshore vendor must have clear policies and procedures for daily work, and clear guidelines about how that work will be evaluated.
  15. 15. Cont….  System access and security 15 Access to the purchaser systems by the outsourcer needs to be considered in the context of current New Zealand privacy legislation, which is intended to protect personal information about identifiable individuals. An outsourcer may only require system access at certain levels to enable them to perform their service  Goals: Goals direct the efforts to specific deliverables. For example, a business, which launch’s its Internet site may want to provide all of its offerings through the website. However, this particular phase of the project may have specific goals, such as streamlining the sales process using Internet technologies and facilitating order placement by the customers. Such goals help narrow down the thinking of the developers to see the specific solutions in the global context and fit them into the project at the proper stages. In future the same system can be expanded and integrated with the other business processes
  16. 16. Cont…. 16  Software licenses: Where third party supply software used to provide outsourced services, the appropriate licenses must be obtained. Any licenses currently held by the purchaser that relate to services being provided may need to be extended to cover the activities of the outsourcer.  Major Features: Major features help people further redefine the scope of a project and open lines of communication to enhance understanding between the client and the vendor. For example, a web project for a retail store may have several features such as admin module, inventory module, storefront and backend database
  17. 17. Impact Of Software Outsourcing We can identify at least the following areas which will be influenced by outsourcing:  Project planning;  Ongoing project management;  Configuration management;  Verification and Management;  Risk management; 17
  18. 18. Cont…. 18 These key activities have been summarized in The issue which influence project planning are:  The need to evaluate, chose and negotiate with potential outsourcing vendors:  The need to schedule, monitor and integrate outsource tasks;  The nature of the outsourcing relationship;  The need to plan and budget for joint software engineering activities, for example: joint configuration management, validation and verification or team risk management.
  19. 19. Cont…. 19 In order for the customer to exercise a level of control over the development of the outsourced components, then bonding, monitoring and benchmarking need to be continually practiced. Bonding in the context of project management, refers to efforts of:  Establish the relationship with the outsourcing vendors;  Defining the communication and control channel;  Structuring the internal personnel to oversee the outsourcing work;  Making the ongoing adjustment in the outsourcing relationship;
  20. 20. Cont…. 21  Monitoring efforts, in the context of ongoing project management are directed toward verifying the process controls and ensuring standard practices across the board. In practice this could mean ensuring:  Complains to standard;  That verification and validation processes for the outsourcing component meet the project standard;  That proper configuration management process is being followed;  That there is sufficient progress against the overall project plan;
  21. 21. Cont…. 22 From the project management system perspective proper configuration management allows the current status of the component to be determined and used to coordinate the project planning and implementation activities:  Baseline for items which need to be shared between outsourcing and outsourcing vendor;  Proper channel of communication;  Proper line of authority for change control;  Change impact and propagation procedures;
  22. 22. Cont…. Another area where the outsourcing desertion has an impact is in the area of verification and validation. In the case of outsourcing a system component the outsource need and this could mean taking into account such nonfunctional factors as:  System performance  System usability  System safety or reliability  System security 23
  23. 23. Cont…. Outsourcing involves business risk and project management, risk, some of the business risk includes the following:  Establishing and maintaining the relationship required for successful outsourcing can be complex and resource intensive;  Losing control over key aspects of the system can cause the outsourcing to become strategically dependent on the outsourcing vendor.  Changing requirements and environment which may impact on the cost, delivery time, and quality of work.  The risk associated with integrating potentiality diver’s technologies into a working overall system 24
  24. 24. Conclusion: 25 White collar jobs ranging from call centers to software engineers to medical technicians are being "outsourced" to India resulting in comments from the White House and the presidential candidates in the USA. This "outsourcing" is blurring the lines in the globalization debate as well. When globalization mainly meant that blue-collar jobs were going overseas, it was ok with many American professionals who supported Globalization. Opponents of globalization, on the other hand, argued that only the bad, dangerous jobs were being sent overseas...setting up a kind of sweatshop slavery.
  25. 25. Cont…. 26 Outsourcing has been alone new opportunities an challenge. Through outsourcing organizations aim to focus on core business, improve qualities of software products and services, speed delivery time, and reduce costs. This is achieved through improving company focus, gaining access to the needed expertise and technology, improving process. Sharing risk and cost, and reusing products and experience.
  26. 26. 27 Cont…. Outsourcing, however, bring along key technical and management issues that need to be addressed and resolved. Further work is still needed to resolve issues such as paradigms, boundaries, specification, design; interfaces, risk management, measurements, and outsourcing project management. Organizations need to adapt their process model to accommodate the outsourcing decision process more complex. It is important to assess the organizations situated and drivers to outsourcing and address the issues and risk before taking the decision.
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