Fear, Uncertainty and Doubt Overcoming these in choosing an offshore QA & Testing provider April 23, 2008 Raja Neravati
Agenda <ul><li>Introduction </li></ul><ul><li>Why Outsource Testing? </li></ul><ul><li>Approach towards Outsourcing QA </l...
Introduction <ul><li>We have not been successful in Outsourcing. We feel it is better to do in-house for better control & ...
<ul><li>Reasons for Outsourcing Testing: </li></ul><ul><ul><li>Positively influence the bottom line </li></ul></ul><ul><ul...
Approach towards Outsourcing QA <ul><li>Four Stages of Outsourcing </li></ul><ul><li>Beginner </li></ul><ul><ul><li>Staff ...
Approach towards Outsourcing QA <ul><li>Four Stages of Outsourcing </li></ul><ul><li>Advanced </li></ul><ul><ul><li>Outsou...
<ul><li>People </li></ul><ul><ul><li>Cultural Challenges </li></ul></ul><ul><ul><li>Global Integration </li></ul></ul><ul>...
<ul><li>Does your provider have a Track Record with  your   type of testing ? </li></ul><ul><ul><li>Approach on Manual vs....
Strengths and Weaknesses of Full-Service Providers <ul><li>Full-service providers bring a vast array of resources to bear ...
Strengths and Weaknesses of Test-only providers <ul><li>Niche providers attract people who really care about testing </li>...
High Low <ul><li>Capabilities of Workforce </li></ul><ul><li>Wages  </li></ul><ul><li>Education Qualifications/Capabilitie...
Outsourcing QA - ROI Trends In-house 2000 Era - Savings up to 60%.  20% Allocated for Contingency & Risk Mitigation Saving...
Business Case : An example
QA – Shift in the Paradigm <ul><li>It is recognised that Testing, if done right, does have a positive business impact </li...
Summary <ul><li>Move testing offshore incrementally - to suit the maturity of your organization </li></ul><ul><li>Consider...
 
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Fear, Uncertainty And Doubt Overcoming These In Choosing An Offshore Qa & Testing From App Labs

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Fear, Uncertainty And Doubt Overcoming These In Choosing An Offshore Qa & Testing From App Labs

  1. 2. Fear, Uncertainty and Doubt Overcoming these in choosing an offshore QA & Testing provider April 23, 2008 Raja Neravati
  2. 3. Agenda <ul><li>Introduction </li></ul><ul><li>Why Outsource Testing? </li></ul><ul><li>Approach towards Outsourcing QA </li></ul><ul><li>Outsourcing – What to Look For? </li></ul><ul><li>Outsourcing – Check and Alignment </li></ul><ul><li>Strengths & weakness of Testing Providers </li></ul><ul><li>Evolving Country Decisions - Economics </li></ul><ul><li>Outsourcing QA - ROI Trends </li></ul><ul><li>Business Case </li></ul><ul><li>QA Shift in the Paradigm </li></ul><ul><li>Summary </li></ul>
  3. 4. Introduction <ul><li>We have not been successful in Outsourcing. We feel it is better to do in-house for better control & visibility. </li></ul><ul><li>We have Global Roll-Outs which need significant co-ordination across various time zones. Outsourcing might not help in our scenario. </li></ul><ul><li>There is lot of domain & business knowledge embedded into our systems. Outsourcing poses challenges; especially for QA. </li></ul><ul><li>Outsourcing is more like a Risk-Reward Program. The higher risks, better are the returns. </li></ul><ul><li>Outsourcing is a common practice and no brainier. What has changed of late? </li></ul>Bottom Line – Outsourcing is a must. How to Outsource & Succeed?
  4. 5. <ul><li>Reasons for Outsourcing Testing: </li></ul><ul><ul><li>Positively influence the bottom line </li></ul></ul><ul><ul><li>Optimize & Gain Efficiencies </li></ul></ul><ul><ul><li>Reduce Time-to-Market & Ability to Scale </li></ul></ul><ul><ul><li>Lack of Professional Testing Expertise </li></ul></ul><ul><ul><li>Improve Quality of Product </li></ul></ul><ul><ul><li>Improve Customer Satisfaction </li></ul></ul><ul><ul><li>Independent & Well-Defined Activity </li></ul></ul><ul><ul><li>Improve the Behavioral Aspects of Development </li></ul></ul>Why Outsource Testing?
  5. 6. Approach towards Outsourcing QA <ul><li>Four Stages of Outsourcing </li></ul><ul><li>Beginner </li></ul><ul><ul><li>Staff Augmentation </li></ul></ul><ul><ul><li>Establish basic principles of QA </li></ul></ul><ul><ul><li>Test the Results </li></ul></ul><ul><li>Intermediate </li></ul><ul><ul><li>Outsource with onsite / offshore model </li></ul></ul><ul><ul><li>Improve QA Practices </li></ul></ul><ul><ul><li>Develop basic governance models </li></ul></ul><ul><ul><li>Gain Maturity in Outsourcing </li></ul></ul>C Client Vendor V Beginner C V V C C C C C C C V V V V V Intermediate Onsite Offshore
  6. 7. Approach towards Outsourcing QA <ul><li>Four Stages of Outsourcing </li></ul><ul><li>Advanced </li></ul><ul><ul><li>Outsource projects – Low to High Risk </li></ul></ul><ul><ul><li>Establishment of QMS </li></ul></ul><ul><ul><li>Measurement & Metrics established </li></ul></ul><ul><li>Sophisticated </li></ul><ul><ul><li>Outsource all QA with Management oversight </li></ul></ul><ul><ul><li>Explore Models like BOT, Global Program Rollout, Multi-Sourced as applicable. </li></ul></ul><ul><ul><li>Partnership Strategy – Win - Win Situation </li></ul></ul>C Client Vendor V Offshore Onsite V V V V V V V V Onsite Onsite C C V V V V Advanced V V V V V V V V V V V V C C An example of Sophisticated Outsourcing with Management Oversight
  7. 8. <ul><li>People </li></ul><ul><ul><li>Cultural Challenges </li></ul></ul><ul><ul><li>Global Integration </li></ul></ul><ul><ul><li>Communication – Key Differentiator </li></ul></ul><ul><ul><li>Project Management Skills – Vast Differentiator </li></ul></ul><ul><li>Process </li></ul><ul><ul><li>Governance & Engagement Models </li></ul></ul><ul><ul><li>Capability & Maturity </li></ul></ul><ul><ul><li>Metrics & Benchmarking </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>Test Data Protection & Privacy – Very Important </li></ul></ul><ul><li>Tools </li></ul><ul><ul><li>Expertise & Exposure </li></ul></ul><ul><ul><li>Partnership Alliances </li></ul></ul><ul><ul><li>COE & Frameworks </li></ul></ul><ul><ul><li>Open Source Adoption – Key ROI Factor </li></ul></ul><ul><li>Other </li></ul><ul><ul><li>Immigration, Tax, Labor Laws </li></ul></ul>Outsourcing – What to look for?
  8. 9. <ul><li>Does your provider have a Track Record with your type of testing ? </li></ul><ul><ul><li>Approach on Manual vs. Automation Testing </li></ul></ul><ul><ul><li>Ability to provide a complete Quality Testing Framework (end-to-end) </li></ul></ul><ul><ul><ul><li>For example – Functional, Automation, Security, Performance, Consulting </li></ul></ul></ul><ul><ul><li>Expertise on the Tools you use </li></ul></ul><ul><li>Experience with companies like you </li></ul><ul><ul><li>Based on the nature of your company (Product, Enterprise, ISV), check for similar experience from Vendor </li></ul></ul><ul><ul><li>Domain Expertise matters: Knowledge of your industry, similar kind of applications, business processes </li></ul></ul><ul><li>Flexibility in Adapting to your Processes </li></ul><ul><ul><li>Check how flexible the vendor is to integrate with your development or release models </li></ul></ul><ul><ul><li>Ability to influence the best practices without significant impact to your business – Similar case studies </li></ul></ul>Outsourcing – Check & Alignment
  9. 10. Strengths and Weaknesses of Full-Service Providers <ul><li>Full-service providers bring a vast array of resources to bear </li></ul><ul><ul><li>Most experience in testing, though not in standalone testing </li></ul></ul><ul><ul><li>Largest testing practices </li></ul></ul><ul><ul><li>More likely to have extensive domain knowledge </li></ul></ul><ul><li>But they simply aren’t as dedicated to testing </li></ul><ul><ul><li>View testing as a market opportunity, not a core focus </li></ul></ul><ul><ul><li>Attract recruits who want to transition to other roles </li></ul></ul><ul><ul><li>Rotate staff in and out of their testing from other businesses </li></ul></ul>
  10. 11. Strengths and Weaknesses of Test-only providers <ul><li>Niche providers attract people who really care about testing </li></ul><ul><ul><li>Deep testing expertise and commitment to the space </li></ul></ul><ul><ul><li>Many have rolled their own testing tools and have built out sophisticated testing facilities </li></ul></ul><ul><ul><li>Little to no danger of non-testers being assigned to your project </li></ul></ul><ul><ul><li>More experience with software and hardware product companies </li></ul></ul><ul><li>But niche providers bring fewer resources to the table </li></ul><ul><ul><li>Unable to rotate resources from other parts of their business to meet growing demand </li></ul></ul><ul><ul><li>Less global footprint in terms of resources – i.e. likely to have 2-3 locations rather than upwards of 6 resource centres worldwide </li></ul></ul>
  11. 12. High Low <ul><li>Capabilities of Workforce </li></ul><ul><li>Wages </li></ul><ul><li>Education Qualifications/Capabilities </li></ul><ul><li>Quality of work/Work ethic </li></ul><ul><li>Attrition Rates </li></ul><ul><li>Middle Management Talent </li></ul><ul><li>Location Attractiveness </li></ul><ul><ul><li>Cultural Compatibility </li></ul></ul><ul><ul><li>Infrastructure </li></ul></ul><ul><ul><ul><li>– Communication </li></ul></ul></ul><ul><ul><ul><li>– Basic infrastructure </li></ul></ul></ul><ul><ul><li>Country risks </li></ul></ul><ul><ul><li>Time zone attractiveness </li></ul></ul><ul><ul><li>Tax Incentives </li></ul></ul>Source: McKinsey, E-Business Strategies Evolving Country Decision – Economics Low High Singapore Hong Kong Czech Canada Australia China Philippines Mexico Ireland India Brazil Russia South Africa Hungary Costa Rica
  12. 13. Outsourcing QA - ROI Trends In-house 2000 Era - Savings up to 60%. 20% Allocated for Contingency & Risk Mitigation Savings & Contingency is almost equal. Major causes are due to increase in costs Savings are possible only when you choose the right Outsourcing Provider. “Zero realization of Contingency is Key to Success” Do it Right – The First Time !!! Time 2000 - 08 # No. of Clients Offshore Adoption ROI – Monetary Business Model – Focus on Labor Arbitrage Business Process – Focus on Integration & Alignment Net Savings Risk Contingency Project Costs Project Costs Risk Contingency Net Savings Project Costs Risk Contingency Savings
  13. 14. Business Case : An example
  14. 15. QA – Shift in the Paradigm <ul><li>It is recognised that Testing, if done right, does have a positive business impact </li></ul><ul><li>Testing has evolved & matured to influence SDLC as opposed to just be the tail end of SDLC. </li></ul><ul><li>Technology Innovation, Tools & Processes has made Testing to be considered as a “ The only Key to Success ” </li></ul><ul><li>Testing Industry is focused now towards Prevention vs. Detection </li></ul><ul><li>Test Driven Development. Why write Tests First? Lean Principle – “ Avoid Waste” </li></ul>What has changed in QA over the past few years
  15. 16. Summary <ul><li>Move testing offshore incrementally - to suit the maturity of your organization </li></ul><ul><li>Consider retaining some testers to work alongside developers </li></ul><ul><li>Be careful in your selection of an offshore testing service provider </li></ul><ul><li>Be careful while drafting your contract terms </li></ul><ul><ul><li>Look for Risk Reward Programs </li></ul></ul><ul><ul><li>Incentive based pricing </li></ul></ul><ul><li>Multi-Sourcing and sourcing niche providers are the better models to succeed compared to outsourcing with a single “all services” vendor. </li></ul><ul><li>Questions? </li></ul><ul><ul><li>Write to [email_address] </li></ul></ul>

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