Collaborative Outsourcing

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Collaborative Outsourcing
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About The Speakers

• Nat D. Natraj - Mr. Natraj is the Founder and
  President of eFORCE a Global IT Services company.
  eFORCE provides IT Services IT Strategy,
  Application Development, Application Maintenance
  to leading G2000 and mid-market firms. eFORCE
  clients include Annexient, Baker Hughes, Cardinal
  Health, Fifth Third Bank, Fleet Bank, DHL,
  Heidelberg, Mazda Motors, MI Drilling,
  Weatherford, etc. Prior to founding eFORCE, Nat
  served as Vice President and General Manager of
  the Financial Services Division at Siebel
  Systems. Natraj received an M.S. degree in
  engineering from the University of Virginia and a
  B.Tech in engineering from Indian Institute of
  Technology, Bombay.
• Gary J. Sherne - Mr. Sherne has served as
  President and Chief Executive Officer for
  WorldGroup Consulting, Inc. since January 2001.
  WorldGroup is the leading provider of component
  based software solutions to the North American
  commercial insurance market, and an IBM Premier
  Business Partner. Prior to joining WorldGroup,
  Mr. Sherne worked for Computer Sciences
  Corporation (CSC) as the Vice President and
  General Manager of the CSC Integrated Payments
  business. Prior to joining CSC, Mr. Sherne
  worked for over a decade for TRW Financial
  Systems, including several years as its Vice
  President and General Manager. Mr. Sherne
  received his Masters in Business Administration
  with Honors from Tel-Aviv University and his
  Bachelor of Arts with Highest Honors from the
  University of California at Davis.

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Discussion outline

• Most outsourcing models have been focused at the
  development, maintenance and support of
  relatively well defined applications in mature
  technologies using long project durations
• Leveraging Outsourcing for applications where the
  business needs change rather dynamically and in
  instances where the underlying technologies are
  leading edge (J2EE, Web Services, etc.) require a
  highly collaborative model on the People and
  Processes involved.
• The discussion will center around a collaborative
  effort between eFORCE and WorldGroup, a leading
  Insurance Industry Solutions Provider and high
  business leverage
• Global Distributed Application Development -
  Strategic Imperatives
• When it applies, When not to apply it
• People, Process, Technology Issues
• Lessons Learned - Do's... Don't's

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4th generation Outsourcing
Collaborative Outsourcing
Percentage of Workers
Support Maintenance
Y2k Enhancements
Staff Augmentation
1990
2000
2004
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Vendor or Partner?
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Business Relationship
Tactical
Strategic
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The B O T Model
Build
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Global Resource Blend/Cost Leverage
Cost Leverage
Business Value Leverage
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Critical Success Factors

• 6 of top 10 success indicators are related to
  Agreement
• The feedback loop between Duration and Agreement
  is critical.
• As duration lengthens agreement erodes, as
  duration shortens agreement is more stable
• Remote project leadership is able to communicate
  with stakeholders less often and generally via
  less rich communication channels
• Slower feedback longer duration

Standish Group Top 10 Success Indicators

• Executive support
• User involvement
• Experienced project manager
• Clear business objectives
• Minimized scope
• Standard software infrastructure
• Firm, basic requirements
• Formal methodology
• Reliable estimates
• Other criteria (small milestones, proper
  planning, competent staff, and ownership)

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Critical Success Factors requirements
requirements

• JAD sessions
• Operation walk-throughs for the entire project
  team
• Facilitated Graphic Groupware sessions replicated
  at multiple sites
• Requirements artifacts in non-technical standard
  formats (RUP, Use Cases, etc.)
• Documentation publishing infrastructure
• UI storyboards, proof-of-concepts, prototypes
• Secundments particularly for Technical
  Collaborators

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Process Methodology

• Followed RUP Rational Unified Process
• Four overlapping phases, designed to allow for
  iterations within each phase producing a better
  product within each phase
• Provided the methodology and structure for how
  each phase was conducted, as well as the
  artifacts for each phase
• Utilized GDM (Global Deliver Model) having
  distributed team

• Why RUP?
• Easier to manage technical teams
• Complements WorldGroups existing project
  management methodology
• Well documented, public, non-proprietary, de
  facto standard
• Broad industry support tools, techniques, best
  practices templates
• Avoids terminology gaps project delays, cost
  overruns due to semantic gaps
• Methodology facilitates incremental, iterative
  and parallel development
• Gives clients ultimate flexibility vendor
  independence

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eFORCE Global Delivery Model
High Level Design
Development Coordination
CustomerSite
IntegrationTest
ClientAcceptance
DetailedDesign
ApplicationTest
Construction Unit Test
India
eGDM White Paper _at_ http//www.eforceglobal.com/pdf
/whitepapers/eF.WP-eGDM_10-28-02.pdf
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Global Delivery tips, tricks and pointers
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Summary
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About WorldGroup

• Insurance software solution company that
  specializes in core insurance processing systems
  such as claims, policy administration,
  underwriting and billing
• Transitioned from high value services provider
• Focuses on Commercial Property Casualty and
  Group Life Health carriers
• Workers Compensation
• Group Life and Disability
• Commercial Lines
• Develops and sells InsureWorx, a Java 2
  Enterprise Edition (J2EE) component library,
  marketed as the insurance industry's leading
  legacy replacement offering
• Over 35 years of worldwide business experience,
  with 100 delivery success

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Objectives of eFROI project

• Prove the overall viability of outsourcing
  strategic work
• Establish working relationship with outsourcing
  partner
• Gain understanding of where SDM might need
  improvement to support off-shoring
• Gather real metrics on costs savings and quality
• Develop first iteration of eFROI product

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FROI Application Overview
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Project Team

• eFORCE Personnel
• Project Team
• Technical Director/Client Partner (1)
• Technical Architect/Project Manager (1)
• Sr. Engineer (1) During Inception phase only
• Sr. Engineer (2), DBA (1), Configuration Manager
  (1), Test Engineer (1)
• Creative Team Project Manager (1), UI Designers
  (2)
• WorldGroup Personnel
• Project Sponsor
• Project Manager
• Business Analyst/UI Developer
• Business Analyst/UAT Tester
• Technical Architect For knowledge transfer

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Project Organization
Open Communications Channel, Risk Mitigation
Executive Sponsor Nat Natraj
Executive Sponsor Gary Sherne
Overall Coordination
Leadership Team Victor Lioz, Gary Davis
Technical Director Khurram Zafar
Technical Architect Anish Biswas
Deliver Engagement, Collaboration and Knowledge
Transfer
Project Management and Technical Direction
Development Team Santanu Jana
Development Manish Chandra Development Niladri
Roy Development/DBA Kaushik Mahaldar Config.
Management Subhasish Chaudry Testing Debjani
Roy UI Design Amit Ghosh UI Design Atanu
Chanda UI Design
Other Stakeholders
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Staffing, Phase and Iteration Plans
Phases
Iterations
One Inception
One Elaboration
Three Construction
Build 0
Build 1
Build 2
Two Transition
Build 3 Rel 1
Build 3 Rel 2
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Top Design Objectives

• Web and Java/J2EE based
• Application server neutral
• Should support both Oracle 9i and DB2.
• Configurable look and feel for the user interface
• Use of open source technology to the extent
  possible
• Extensible e.g. additional states
• Support for configurable validation rules that
  vary by state
• Ease of support and maintenance
• Business layer abstraction

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Tools Technology
Open source Commercial/Licensed
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Measures to Ensure Success

• Iterative development
• Risk mitigation quick and safe choice of
  technology
• Partnered with WorldGroup resources during
  inception and elaboration phases
• Over-communication
• Expectation management Prioritized Feature
  Matrix

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Lessons Learned

• On shore coordination really helps, but adds
  significantly to costs
• Comparable quality of deliverables to own
  mid-level development staff
• More disciplined and mature with use of process
• We need to have as much ownership of technical
  specifications as we did with functional
  specifications
• In future, will be better to work as one
  integrated team, as opposed to having partner
  work on isolated pieces
• Will get much better leverage and value
• Political environment, external and internal,
  still makes this trickier than need be
• Many staff still sees as threat, instead of
  opportunity

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Summary
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• Leverage a rigorous, yet flexible methodology
• Follow disciplined processes
• Utilize a global workforce
• Rely on industry standard technical platforms
• Insist on Guaranteed On-budget, On-time Delivery

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Innovate. Execute.TM
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