DataArt - Software Outsourcing Company

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DataArt Precision and Art in Technology Solutions
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What is DataArt

• Software Outsourcing
• Application engineering, architecture, design and
  QA
• RD
• Support and maintenance
• Focus on Small and Medium-size businesses
• Founder and sponsor of OOBP.org a non-profit
  community studying best practices in Outsourcing
  for SMBs

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Outsourcing for large and small firms
Small and medium-size companies Large, formal companies
Responsibility to select a vendor CEO/Founder CIO
Level of formalization and suitability for formal QA systems (CMM, ISO) Low High
Vendor relations Few and personal Many and formal
Preferred vendors size Prefer smaller vendors Need vendors capable to provide large volumes
Acceptance criteria Results and impressions Contract specs
Primary protection from non-performance Relations Legal contract. Expensive consultants.
Awareness of marketplace Relatively low (based on few personal connections) High and formal (numerous vendor presentations)
Communication preference Personal and direct Formal
Proffered methodology Agile, open for suggestions Formal processes (RUP-like)
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Offshoring dynamics

• Drivers
• Concentrate on core competence - free up
  management bandwidth
• Pay per use (avoid infrastructure expenses)
• Reduce cost
• Access to global resources

• Inhibitors
• Low awareness of benefits
• Little practical experience
• Fear of loosing control
• Internal resistance
• Problems measuring value
• Perception of high risks
• Lack of experienced staff

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Myths

• Very low price is the winner
• People-independent processes
• Quality guarantee systems
• Consultants and public research

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Contents

• Getting started with outsourcing
• Vendor selection and building relations
• Process
• Quality
• Troubleshooting

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Getting started

1. What to outsource?
2. Define the scope and expected benefits
3. Sell the concept internally
4. Allocate internal resources

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Your options

• Short-term
• Fixed-scope, fixed cost
• TM (on-demand)

• Strategic
• Dedicated teams
• Team completion / staff augmentation
• Build and Transfer (BAT)
• Joint venture

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Selecting vendor

• Find candidates, solicit offers
• Ask around (network, trade groups, internet)
• RFIs use them, but dont rely on them
• Vendor size to consider
• Choose whats best for you
• Listen to them specific expertise, examples,
  references
• Make them work What investment are they ready to
  make
• Talk to them synergy with stakeholders
• See them visit development facility
• Try them competitive pilots
• Keep your options open
• Invest in long-term relationships but short
  projects
• Periodic due diligence
• Rare, but systematic competition analysis

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Building relations

• High cost of engagement - high stakes
• Understand vendors business
• Human capital competition
• Resource allocation issues
• High cost of sales
• Allocate time for relationship management
• Share goals
• Dont save on knowledge transfer and education
• Make it challenging

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Process

• Project management use any standard, just watch
  for complications of remote team
• Communications, communications, communications
• Clear milestones, deliverables and acceptance
  procedures
• Metrics, incentives and penalties
• Take interest in whats going on in technology
• Allocate time and be patient
• On-going knowledge transfer
• High-level review sessions with vendors
  management
• Show trust and appreciation

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Quality

• Compliance
• Formal specs, style sheets, test cases, design
  templates, performance benchmarks

• Perception
• This is no good, quality is too low, I do
  not like the way it looks, This developer is
  arrogant

• Ensure compliance, manage perception
• Assume less, articulate more
• Invest time into defining common sense criteria
• Formalization vs. costs

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Watch for

• Hidden technical challenges
• Internal sabotage
• Loss of project focus
• Arguments over quality level
• Unreasonable charges
• bugs vs. enhancements arguments
• Be careful with sub-contractors
• Communication breakdowns

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Troubleshooting

• What if things went wrong?
• It is not contracts that save projects

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Resources

• OOBP.org - association of SMBs sharing best
  practices in offshore outsourcing
• Trade organizations associations of offshore
  companies (NASSCOM, RUSSOFT, Fort-Ross)
• Research on the internet (be careful!)