Software Outsourcing: Optimizing the Approach

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Efficient approach to successful software outsourcing: provider-client relationship, marketing the services, team & resource management, improving knowledge base, controlling quality, etc.

Text of Software Outsourcing: Optimizing the Approach

  • Software Outsourcing Optimizing the Approach www.softheme.com
  • Introduction Providing outsour c ing of IT services for more then a decade, Softheme , a Ukrainian software outsourcing company, gathered an extensive knowledge base on various aspects of the business. We believe the success in software outsourcing business can be achieved by : www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach.
    • Analyzing our past experience we identified the approach which works best for our company and though it might be useful to share this approach with the community.
  • Table of Contents 1. Transparent outsourcing provider and client relationship pricing model requirements metrics 2. Marketing the services fair presentation of the services researching the customer s needs 3. Team and resource management. Proactive control adjusting the work to the customer's business processes efficiently organi z ing the team work 4. Improving knowledge base new trends in technolog y and management analyzing the lessons learned 5. Control l ing the quality s tandards requirements analysis testing www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach.
  • 1. Transparent outsourcing provider and client relationship
    • Optimizing a price model. Fair price.
    • Like in any business, in software outsourcing there are areas where costs can be cut
    • and those which require additional investments to provide significant performance
    • in the future.
    Can be cut Cannot be cut
    • Knowing all types of costs and forming the price based on them helps maintaining long-term relationships with customers.
    www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach.
  • 1. Transparent outsourcing provider and client relationship
    • Optimizing a price model. Fair price
    • The pricing model must take into account risks for decisions wthin each party's control
    • T op performance of the outsourcing service provider should be encouraged
    • D iscounts shall be provided in case the customer brings more business to the provider :
    www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach. provider:
  • 1. Transparent outsourcing provider and client relationship
    • Focusing on outcomes. Sufficient requirements specification.
    • Software outsourcing providers expect their customer to specify the expectations for:
    • the system
    • business-specific data
    • restrictions of the environment
    • time and budget constraints
    • The software outsourcing provider takes the responsibility of determining the necessary processes in order to achieve the desired outcomes.
    The rest can be defined on the outsourcing service provider side: www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach. technology of choi c e specifications application design, development, testing , deployment procedures
  • 1. Transparent outsourcing provider and client relationship
    • Performance monito r ing procedures. Metrics.
    • Both customer and outsourcing provider should agree on clearly defined and measurable outsomes functionality coverage, development schedule.
    • The progress of the software application development against the development plan should be easily measurable .
    • The feedback from the customer is vital in response to the demonstration.
    W E RECOMMEND: demonstrating the achievements demo version of the software program, modules ready for the review together with detailed reports which reflect the application specification coverage. www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach.
  • 2. Marketing the services
    • Properly presenting services
    • I T IS IMPORTANT TO:
    • know and effectively communicat e service capabilities
    • properly present the services to the potential customers
    • tailor the line of services to the customers' specific needs
    www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach.
  • 2. Marketing the services
    • Understanding the customer's needs
    regularly researching customer requirements i dentifying specific requirements and working to fulfill them interacting with customers and getting information about their users Work with customers to understand desired outcomes and focus on achieving them through : www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach.
  • 3. Team and resource management. Proactive control
    • Adjusting work to the customer's business processes.
    • It takes several meetings / e-mails / phone conferences to understand the processes
    • set up on the customer side which should be taken into account b y the outsourcing provider :
    After that , the processes on the outsourcing services provider side meetings, reports, conferences, deliverables, presentations can be adjusted to those of the customer: www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach. meetings e-mails conferences processes understood! providers processes customers processes
  • 3. Team and resource management. Proactive control
    • Adjusting work to the customer's business processes.
    IT IS IMPORTANT to understand the process which is set up on the client side . The following things should be clarified: www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach. point of contact for the team points for addressing certain questions and issues
    • information distribution
    • on the client side :
    • changes
    • m ilestones
    • plans
    optimal way to check the team receives data in a timely manner
  • 3. Team and resource management. Proactive control
    • Adjusting work to the customer's business processes.
    • Information exchange with the customer is defined by and takes place via such acclaimed channels :
    www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach. information exchange points of contact communication channels issue tracking procedures tasks tracking procedures reporting procedures roadmap meetings project meeting schedule
  • 3. Team and resource management. Proactive control
    • Organizing efficient team work
    • The team structure and size are defined based on project's goals after analyzing
    • the timeframe and budget.
    Skills are identified based on the : www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach. projects goals timeframe and budget team structure and size business domain technology stage of project development
  • 3. Team and resource management. Proactive control
    • Organizing efficient team work
    Paying attention to the team training against the customer's business domain, setting up standards and metrics is as important as providing reviews, revisions and applying corrections to the existing procedures.
    • The team priority should be : constant improvement of knowledge both in technology and in business domain .
    www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach.
  • 4. Improving knowledge base
    • Keeping and transfering the project-specific knowledge
    • Getting familiar with new technologies and approaches
    • Maintaining a knowledge base of case studies and lessons learned
    www.softheme.com Outsourcing to Softheme Software Outsourcing: Optimizing the Approach.
  • 5. Controlling the quality
    • Introducing standards
    • Metrics, coding standards, patterns, templates
    • Analyzing the requirements
    • System overview, functional and operational requirements, performance,
    • time and budget constraints
    • Requirements coverage verification
    • Correspondence of the high-level requirements to the technical specification, technical specification to the system design,
    • system design and architecture to the source code
    • Testing
    • Functional, performance, quality control
    • (correspondence of

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