Offshore Development in a Global Company

1
Offshore Development in a Global Company

• Case Study MIND CTI

2
The Offshoring Decision

• Why investing in creating an offshore Branch if
  we can
• Work with an outsourcing vendor on ODC basis
• Work with an outsourcing vendor on TM basis
• Work with an outsourcing vendor on a project basis

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The Offshoring Decision
In house vs. Outsourcing
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The Offshoring Decision

• Expect internal opposition to the move
• People will feel threatened
• Market the change to the onsite stuff
• Advance in the crier ladder by being responsible
  of an Offshore team/group/project
• Focus on innovative and core activity and not the
  tedious repetitive work
• Gaining experience in a global company

5
Location, Location, Location

• Where do we open the branch
• Local Labor cost
• Local Universities level and proximity
• Local level of English
• Corruption is it feasible doing business there?
  
• Proximity to international airport
• Number of High-Tech companies in the region
• HR Competition
• IT Infrastructure

6
Onsite-Offshore Team Structure

• Horizontal (onsite management-offshore RD)
• High rateof interaction between onsite and
  offshore teams
• Less productive
• Bitterness of the offshore employees
• Vertical (offshore management-offshore RD)
• Risk of loosing control

7
Structured Development Process

• Well defined Development Process
• Roles and responsibilities
• Well defined documentation
• Avoid unnecessary burocracy
• Light CMM
• Agile Development

8
Choose Offshore Projects Wisely

• Not everything can and should be offshored!
• Minimal interaction with onsite groups
• Well defined interfaces
• Loosly-coupled architecture SOA!

9
Cultural and Mentality Gaps

• Acknowledge the fact that they dont think,
  behave and act like us!
• This is the number one problem of offshore in
  general a major hidden cost
• Cultivate corporate culture
• Encourage social activity
• Onsite visits of offshore personnel
• Encourage questions
• A lot of positive strengthening even when they
  make a mistake!

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Fighting Attrition Rate

• Attrition rate is very high in developing
  countries
• This is the number two problem of offshoring
  projects again hidden cost
• Provide on-going trainings, preferably ones with
  world-wide certification
• Provide titles for employees to make them feel
  significant
• Create personal programs for employees
• Housing, Loans
• Cars

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Effective Communication

• Creating an effective communication is a must
  it is the key for productive Offshoring
• Every communication tool has its pros and cons
  use all of them wisely
• Voice calls
• Audio conferencing
• Video Conferencing
• Instant Messaging
• Documentation
• Wiki
• Intranet

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Effective communication

• Exchange ambassadors
• Send offshore stuff for onsite training
• Send business analysts and project Managers for
  long period of times
• Send team/group leaders for short times on a
  frequent basis including social activities!
• Send offshore stuff to customers

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QA

• Q A