Trends in Software Outsourcing

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Trends in Software Outsourcing:

Trends in Software Outsourcing Best Practices www.softheme.com

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Table of Contents - Selecting a vendor critical factors » business expectations » relationship control » success / failure - Applying effective outsourcing strategy focusing on outcomes » monitoring the development cycle - Managing risks risk categories » risks mitigations - Signing service level agreements goals & objectives » performance measurement » processes & practices » knowledge/data transfer » technology & services evolution » client-vendor relationships www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Selecting a vendor - Accounting for the most critical factors: finance technology process operations people business part of the project in the vendor's portfolio investing in training, case studies, experience quality control, development cycle management & communication selection criteria, labor pool flexibility to change reflecting customers’ business needs and processes www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Selecting a vendor - Setting business expectations: goals values background getting to know your partner www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Selecting a vendor - Setting business expectations: Understanding the combination of: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Selecting a vendor - Keeping control of the relationship: control manage: taking responsibility for the project participate: knowledge transfer, training communicate: provide feedback, deal with the issues www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Selecting a vendor - Measuring success, handling failures: saved costs new tools, functionality, performance processes function without major involvement of the management team decreased time for management/communication customer satisfaction www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Applying effective outsourcing strategy - Focusing on outcomes: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Applying effective outsourcing strategy - Monitoring the development cycle: tracking the status via: reports reviews meetings receiving end-user feedback converting it into new requirements / bug reports www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Managing risks www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Managing risks - Risk categories: operational strategic legal financial www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Managing risks - Risks mitigations: Utilize technology: - tools for tracking communication - automated tools for tracking task - tools for measuring progress/performance Manage knowledgebase: - technical documentation - knowledge transfer within the teams Control the process: - make sure the processes are integrated - communicate regularly - maintain formal specifications - receive and analyze reports - conduct reviews / provide feedback Measure the deliverables: - quality - timeliness - skills and capabilities Adjust the contract: - test possible scenarios - introduce incentives and penalties - share risks and rewards utilize control risks adjust manage measure www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Signing service level agreement - Focusing on outsourcing goals and objectives: - all vital terms and conditions should be reflected in the Service Level Agreement - take into account known issues - be clear on the assumptions you are making www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Signing service level agreement - Measuring performance: - agree on a clear performance metrics - choose pricing model which reflects performance improvement - introduce incentives for ideas and solutions which result in performance improvements - include penalties - Defining processes and practices: - make sure the processes and procedures are flexible enough - business specific aspects should be taken into account when defining processes www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Signing service level agreement - Knowledge and product data transfer aspect: - the mitigation strategy in case the team member leaves should be in place - the transition strategy in case of switching to another provider: data relocation procedures code stored on the client side technology corresponds the project tasks documented code - security aspect : - access to logs, backup policies - modular access to the project data - access levels defined for every team member architecture addresses functional and non-functional requirements www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Signing service level agreement - Evolution of technology and services: - new technologies on the market - a need in newer equipment - training on new technology trends - reviewing the pricing model www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Signing service level agreement - Client-vendor relationships: - spread the responsibility - possible changes and improvements on both sides - additional costs : - training - meetings - effective collaboration model : - onsite and offsite team structure both parties should be responsible for risks within their control - equipment - need in new services www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

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Thank you! 2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions Questions??? → info@softheme.com www.softheme.com » Outsourcing to Softheme ™