International Software & Productivity Engineering Institute Best Practices for Launching and Managing Outsourcing Subsidiaries Vladimir L Pavlov, INTSPEI

International Software & Productivity Engineering Institute

Best Practices for Launching and Managing Outsourcing Subsidiaries

Vladimir L Pavlov, INTSPEI Chairman and Chief Strategy Officer

http://www.intspei.com

2http://www.intspei.com

Agenda

INTSPEI Overview

Best Practices

How Can INTSPEI Help You Launch Your Outsourcing Facility?


Global 500 Companies

2005 2006 20070

200000

400000

600000

800000

1000000

1200000

Average Impact, USD

2005 2006 20070

10000

20000

30000

40000

50000

60000

Average Productivity, USD


Productivity Strategies for a Software Company

Partner Ecosystem’s Productivity

Clients’ Productivity

Employees’ Productivity

4

Decrease Spending

Increase Outcome


How Can INTSPEI Help You Grow Productivity of Your Employees?

SDLC Fine-Tuning:

Increase Outcome

•We will help you optimize your existing software development process•SDLC = Software Development Life Cycle

SDC In-A-Box:

Decrease Spending

•We will help you create your new software development subsidiary in Eastern Europe•SDC = Software Development Center


SDLC Fine-Tuning

The most important decisions (and most expensive mistakes) are done at the beginning of the project

The initial amount of quality control is minimal and then grows as development moves forward.

This results in a costly rework (often hidden) on the late stages of the project

INTSPEI SDLC Fine-Tuning addresses this problem. We enable our clients to reduce delays between bug insertions and bug fixes

After SDLC Fine-Tuning, your engineers will start discovering and fixing critical mistakes virtually immediately - when introduced - not at the late phases where they are the most expensive to resolve

Requirements

Requirements

Architecture

Architecture Detailed Design

Detailed Design

• Construction

Construction

Maintenance

Phase That a Defect is Corrected

Phase That a Defect is Created

Cost to Correct

Cost to correct a defect greatly depends on how early it was introduced and revealed


SDC In-A-Box

Turn-key outsourcing solution: INTSPEI creates a software development subsidiary for a client

Currently we offer our services in Armenia, Belarus, Russia and Ukraine

We can also help our clients to launch a subsidiary in any other Eastern European country

INTSPEI cares about everything – hiring, facility, logistics, local legal requirements, business-processes, etc.

The development center is launched as client’s subsidiary

Alternatively, it can be created as INTSPEI subsidiary and then (when the client feels comfortable) the ownership is transferred to the client


Agenda

INTSPEI Overview

Best Practices



Awareness Of Geo Difference

Recommendations For

USA / Western European

Companies

Learn differences between CEE countries

Learn differences between the capitals and “regular” cities

Recommendations For

Eastern European

Companies

Benchmark your offerings against global market

Do not be afraid to outsource to the USA / Western Europe

Focus on natural partnership opportunities


Integrity

Recommendations For


Companies

Do not plan to do in CEE anything you would not do in your own country

Recommendations For

Eastern European

Companies

Learn about the USA Foreign Corrupt Practices Act


Consistent Business Processes

Recommendations For


Companies

Recommendations For

Eastern European

Companies

Learn about the USA Foreign Corrupt Practices Act

Use the same business processes for all sub-teams

Utilize process-patterns for distributed teams


MSF Team Model

Advocacy

Solution Delivery

DevelopmentDevelopment

TestTest

Release /OperationsRelease /

Operations

UserExperience

UserExperience

ProductManagement

ProductManagement

Program Management

Program Management ArchitectureArchitecture

Solution Design

Solution Definition

Solution QualitySolution Usability

Solution Construction

Solution Deployment


MSF Team Model for Software Outsourcing Projects

Western Europe / USACEE

DevelopmentDevelopment

TestTest

Release /OperationsRelease /

Operations

UserExperience

UserExperience

ProductManagement

ProductManagement

Program Management

Program Management ArchitectureArchitecture


Best Practice: In Software Outsourcing Projects All Functional AreasShould be Covered on Both Sides

14

USA / Western Europe

Program management

Development

Test

User Experience

Product Management

Program management

Development

Test

Release Management

User Experience

Product Management

Release Mngmnt

CEE

ArchitectureArchitectureArchitectureArchitecture


MSF Risk Management Discipline

Risk Statement

Risk Database,Risk Concepts and

Processes

Identify

LearnLearn

ControlControl

Track and Report

Track and Report

Plan and SchedulePlan and Schedule

Analyze and

Prioritize

Analyze and

Prioritize

Risk Assessment Document

Top n Risks


Risk Management for Software Outsourcing Projects

16

Western Europe / USA

Risk Statement

Risk Database,

Risk Concepts

and Processes

Identify

LearnLearn

ControlControl

Track and

Report

Track and

Report

Plan and

Schedule

Plan and

Schedule

Analyze and

Prioritize

Analyze and

Prioritize

Risk Assessme

nt DocumentTop n

Risks

Risk Statement

Risk Database,

Risk Concepts

and Processes

Identify

LearnLearn

ControlControl

Track and

Report

Track and

Report

Plan and

Schedule

Plan and

Schedule

Analyze and

Prioritize

Analyze and

Prioritize

Risk Assessme

nt DocumentTop n

Risks

CEE


Best Practice: One Transparent Risk Management Process for All Sub-Teams

17

US A/ Western Europe

Risk Statement

Risk Database,Risk Concepts and

Processes

Identify

LearnLearn

ControlControl

Track and Report

Track and Report

Plan and SchedulePlan and Schedule

Analyze and

Prioritize

Analyze and

Prioritize

Risk Assessment Document

Top n Risks

CEE


IBM Rational Unified Process

Phases

ManagementEnvironment

Business Modeling

ImplementationTest

Analysis & Design

Preliminary Iteration(s)

Iter.#1

Disciplines

Iterations

Iter.#2

Iter.#n

Iter.#n+1

Iter.#n+2

Iter.#m

Iter.#m+1

DeploymentConfiguration Mgmt

Requirements

Elaboration TransitionInception Construction


RUP Disciplines For Software Outsourcing Projects

CEE Western Europe / USA


Best Practice: All RUP Disciplines Span All Offices

CEE USA / Western Europe

Elaboration TransitionInception Construction

20


Project Postmortem

21

CEE Western Europe / USA

POSTMORTEM POSTMORTEMPOSTMORTEM

21


Best Practice: “Big Postmortem” For All Project Stakeholders

CEE USA / Western Europe

POSTMORTEM POSTMORTEMPOSTMORTEM

P O S T M O R T E M


Relations With Local Universities

Recommendations For


Companies

Recommendations For

Eastern European

Companies

Build relations with local universities

Establish your own educational facility


CEE Job Market Specifics

Two of CEE countries (Russia

and Ukraine) are in the list of Top 5

the most educated countries in the

world

CEE software companies cry

that there are not enough qualified resources on local

job market ?


Agenda

INTSPEI Overview

Best Practices



SDC In-A-Box

Turn-key outsourcing solution: INTSPEI creates a software development subsidiary for a client

Currently we offer our services in Armenia, Belarus, Russia and Ukraine

We can also help our clients to launch a subsidiary in any other Eastern European country

INTSPEI cares about everything – hiring, facility, logistics, local legal requirements, business-processes, etc.

The development center is launched as client’s subsidiary

Alternatively, it can be created as INTSPEI subsidiary and then (when the client feels comfortable) the ownership is transferred to the client


SDC In-A-Box: The Process

Defining Scope Of Work Client and INTSPEI agree on the list of people to hire, office space requirements, business processes, budget, etc.5-30 days

Launching the Software Development Center INTSPEI sets up an office for the client, deploys the infrastructure, hires people, performs the paperwork to meet local legal requirements, etc.2-5 months

Managing Current Operations (optional)• I

NTSPEI manages outsourcing office

• As many months as the client needs


SDC In-A-Box: Two Ownership Options

•Software Development Center is owned by the client from the very beginning

Client

•Initially INTSPEI owns the Software Development Center•As soon as the client feels comfortable, the ownership is transferred to the client

INTSPEI


Money-Back GuaranteeAvailable for a period of 30 days after our services are completed


10% Discount for Participants of the CEE Outsourcing SummitAvailable for a period of 6 months after the conference


Next Steps

Assess your company’s productivity strategy:• Employees’ productivity?• Productivity of your

customers?• Productivity within your

partner ecosystem?

Contact INTSPEI• Talk to me at a coffee-

break• Mail me at

[email protected]

Order INTSPEI services:• SDLC Fine-Tuning to

increase outcome of your engineering process

• SDC In-A-Box to bring down the costs of your engineering process


Thank You

This presentation was delivered on September 12, 2007, in Kiev

on the First CEE Outsourcing SummitYou can download it from http://www.vlpavlov.com


http://www.vlpavlov.com/

Documents

International Software & Productivity Engineering Institute Best Practices for Launching and Managing Outsourcing Subsidiaries Vladimir L Pavlov, INTSPEI