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© LogicaCMG 2006. All rights reserved Outsourcing/Offshoring – The challenges Rik Marselis Senior Test Advisor [email protected]

Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

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Page 1: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

© LogicaCMG 2006. All rights reserved

Outsourcing/Offshoring – The challenges

Rik Marselis

Senior Test Advisor

[email protected]

Page 2: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

2Outsourcing/Off shoring – The challenges

Agenda afternoon

• 13:25 – 14:05 TestFrame

• 14:50 – 15:30 Outsourcing/Offshoring – The challenges

• 15:40 – 16:30 Outsourcing/Offshoring – Under control

Page 3: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

3Outsourcing/Off shoring – The challenges

Agenda Outsourcing/Offshoring – The challenges

• All this sourcing

• Why outsourcing

• Challenges when outsourcing

Page 4: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

4Outsourcing/Off shoring – The challenges

Questions

• Who has experience with outsourcing?

• Who has experience with offshoring?

• Which countries did you outsource/offshore to?

Page 5: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

5Outsourcing/Off shoring – The challenges

All this sourcing…

Page 6: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

6Outsourcing/Off shoring – The challenges

Challenges when outsourcing

Page 7: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

7Outsourcing/Off shoring – The challenges

Statement 1

Outsourcing & offshoring are not the same thing

Page 8: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

8Outsourcing/Off shoring – The challenges

Statement 2

Indian people don’t always mean yes when they say Yes

Page 9: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

9Outsourcing/Off shoring – The challenges

Statement 3

Communication through telephone and email is not enough

Page 10: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

10Outsourcing/Off shoring – The challenges

Why outsourcing*

• Better quality software and applications in the end 41%

• Better control of the development process through SLA’s 38%

• More accountability for the projects 37%

• Faster time to market for developments 36%

• Better project planning 33%

• Reduced cost of development 31%

• Better communication with the end user department 13%

* Testing times for board rooms. A study by LogicaCMG into software testing in the UK, the Netherlands and Sweden

Page 11: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

11Outsourcing/Off shoring – The challenges

Why outsourcing

• Go from fixed (high) costs to flexible (fit to needs) costs

• Compensate for peaks in need for personnel

• Need for specific knowledge and/or experience

• Independent judgment of quality

Page 12: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

12Outsourcing/Off shoring – The challenges

Page 13: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

13Outsourcing/Off shoring – The challenges

Changes when outsourcing

• A purchasing department remains• Purchasing:

– Selects the supplier– Makes a contract / SLA – Makes assessment of the supplier– Supports the business to assess the product

• The Business accepts/assesses, but on what basis?• Acceptance requires IT knowledge; not structured

but occasionally• How to cope with this?

Business

Purchasingdept.

ITdept.

ITsupplier

Page 14: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

14Outsourcing/Off shoring – The challenges

Test levels in the V-model

Acceptance Test

ComponentIntegration Test

Component Test

System IntegrationTest

System Test

User needs,Requirements,

Business processes

SystemSpecification

Technical Design& Code

terms according to:

Page 15: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

15Outsourcing/Off shoring – The challenges

Organization’sResponsibility

SupplierResponsibility

Possible Situation 1

Acceptance Test

ComponentIntegration Test

Component Test

System IntegrationTest

System Test

User needs,Requirements,

Business processes

SystemSpecification

Technical Design& Code

terms according to:

Page 16: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

16Outsourcing/Off shoring – The challenges

Organization’s Responsibility

SupplierResponsibility

Possible Situation 2

Acceptance Test

ComponentIntegration Test

Component Test

System IntegrationTest

System Test

User needs,Requirements,

Business processes

SystemSpecification

Technical Design& Code

terms according to:

Page 17: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

17Outsourcing/Off shoring – The challenges

Barriers

• Loss of control

• Projects and contracts going wrong

• Increasing dependence on a single supplier

• Loss of skills

• Employment law issues

• Security

• Privacy

• Loss of ability to differentiate in the market

• Rising costs

An unwillingness to consider outsourcing?

Page 18: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

18Outsourcing/Off shoring – The challenges

Statement

By outsourcing / offshoring we will lose our job

Page 19: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

19Outsourcing/Off shoring – The challenges

After the coffee break: Business Acceptance Management (BAM)

Test preparation

and execution

Test Management

Business

objectives

Structure/Fitting/ToolingStandard

RepeatableReliable

Maintainable

InsightControlFocus

ReportingPredictable

Commitment

Risk ControlQuality to MarketTime to Market

Business AlignmentBudget Control

Reputation Management

BAM

Page 20: Outsourcing/Offshoring – The challenges · Outsourcing/Off shoring – The challenges 10 Why outsourcing* • Better quality software and applications in the end 41% • Better

20Outsourcing/Off shoring – The challenges