Software Outsourcing: Outsource Your Project or Build a Team

Software Outsourcing Outsource your project or build a team

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Table of contents • IT Outsourcing models

• Outsource your project

Overview

Business case

Advantages

Pricing models

• Build a team

Overview

Structure

Methodology

Benefits

• About Softheme

There is no doubt that IT Outsourcing is the eventual choice for most companies, as in-house IT staff is expensive, difficult to motivate and manage, and in many cases they don’t stay around for very long.

IT Outsourcing models

IT Outsourcing models

When it comes to IT Outsourcing, there are two main support models:

Traditional IT Outsourcing is a lot like having your own in-house IT staff – except that they were not on your own payroll. Instead, you pay the IT Outsourcing Company to provide a certain number of staff for a pre-determined number of hours per week or per month.

Managed Services, on the other hand, is a different model of IT Outsourcing altogether. Instead of paying for the time of an IT employee, you are paying for your systems to be properly designed, maintained and supported – regardless of what the service provider has to do to achieve that. Ultimately, this is the end objective of any IT department.

Quick overview

Project-based outsourcing is the best fit in case when your project requirements and deliverables are clearly defined. It proves to be the ultimate choice for irregular though ongoing or one-off projects. Project-based outsourcing provides for greater flexibility and focus, corresponding to changing needs for resources with pricing being based on the project scope.

Outsource your project

The most typical cases to consider project outsourcing are when:

Cost benefits are to be obtained immediately

Outsourcing for you is rather short/mid-term goal, not a strategy

Long-term investments are not intended

Short-term project could not be handled internally

Missing specific skills/know-how

Project deadlines are constrained

Outsource your project Business case

Project deadline is known before the initialization of project Fixed costs and fixed budget Quick realization of cost savings Access to specific technology expertise and best practices Avoidance of long-term risk

Project-based outsourcing offers a number of advantages, such as:

Outsource your project Key advantages

Based on the number of hours

of work completed per day.

Based on the pre-defined scope of

work to be completed.

A certain quantity of man-hours or

man-days at a pre-negotiated rate.

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When outsourcing a project, customers usually select one of these three popular pricing models:

Outsource your project Typical pricing models

Time and Materials Typically, the T&M model is preferred when the project scope, specification and implementation roadmap can’t be decided on the initiation stage of the project and might vary dynamically during the project implementation. This engagement model helps mitigate the risks of ambiguity and frequent changes in the project scope.

Fixed Price This model is best suited for projects with a pre-defined scope and clear specifications and helps achieve absolutely predictable budget forecasts and fastest time-to-value on your enterprise systems.

Managed Capacity This engagement model is most effective when the project outcome is well-defined and clearly established but the path to the goal is apt to changes.

Outsource your project Typical pricing models: explained

When building a team, customers get dedicated resource base that is working exclusively on their projects and can be managed as if it were their internal department. This delivery model is best suitable for software projects with changing requirements, maintenance and support of large systems, research and development, testing as well as other types of complex ongoing tasks.

Build a team Quick overview

Client

Your In-House Resources

Client Co-Coordinator

Project Manager

QA Team

Programming Team

Design and SEO Team

Build a team Core structure

Step 1. Project Team Creation Step 2. Onsite-to-Offshore Knowledge Transition Step 3. Offshore Process Definition Step 4. Offshore Simulation Step 5. Offshore Project Execution Step 6. Review the project deliverables and identify the weak areas of the implementation.

Typical methodology of building an offshore development team looks like the following six steps:

Build a team Methodology overview

Step 1. Project Team Creation • Sign off on a Scope Agreement • Identify key team members for a project

Step 2. Onsite-to-Offshore Knowledge Transition The main goal for this phase is to understand client’s requirements, business procedures, company standards, the specific systems’ IT environment as well as the approach that will be used. It's a huge learning curve but once you get over it, it is much easier to move further to the next step.

Build a team Methodology overview

Step 3. Offshore Process Definition On this stage, performing customization of the methodology for the client’s specific requirements should be done.

Step 4. Offshore Simulation • Simulate client’s IT environment at an Offshore Development Center • Review and confirm the Service Level Agreements (SLAs) • Build the Offshore Infrastructure (IT, software, and physical) • Set up the Offshore Team (project management, development, QA) • Perform metric-defined training of the Offshore Development Team

Build a team Methodology overview

Step 5. Offshore Project Execution Start executing the project according to the agreed project plan for the first 6 month period.

Step 6. Review the project deliverables and identify the weak areas of the implementation • Implement the feedback • Have the first year Service Agreement review

Build a team Methodology overview

No long-term initial investments, flexible pricing, quick ROI

Full operational control, complete flexibility of operations

Readily available facilities/infrastructure at hand

Consistent but flexible team

Seamless integration into customer's workflow and processes

Accumulation of customer-specific knowledge

Strong service delivery and methodology practices

Building an offshore team has a number of benefits that are listed below:

Build a team Key benefits

Keep the information from this presentation in mind, carefully analyze your business needs, discuss your preferences with a potential outsourcing partner, and you will always be successful in selecting the right IT Outsourcing Model for your business.

Thank you

Learn more about Softheme >

Company Fast Facts:

Core Services:

• Software development

• Software re-engineering

• Enterprise-level application development

• Web development

• Mobile development (iOS, Android, Blackberry, etc.)

• Software maintenance & support

• Independent testing & QA

• Remote system administration / security audit

• Web marketing, marketing automation

• Dedicated development teams

• Founded in 2006, privately owned, UA ownership

• More than 1,000 successfully delivered projects

• 250+ developers and testers in 5 offices in Kiev

• 80% of clients selected Softheme basing on customer recommendations

• 30% certified specialists (Microsoft .NET, Sun Java, etc.)

• Customers in the USA, UK, Japan, Western/Eastern Europe range from start-ups to Fortune 500 corporations

Application Domains: • ERP / CRM / Document management

• Website / blogs / e-commerce

• Social networks with video

• Data analysis / data security

• Finance

• SaaS, and more

Technologies: C# .NET, Java, C/C++, ASP.NET, PHP, Ruby, Python, Delphi, Oracle, MS SQL, mySQL, JS/Ajax

About Softheme

Terms of Engagement: • Cost-free project quote, free pilot project

• Confidentiality / IP rights reserved

• Fixed-price, fixed-team, time & materials contracts

• Rates starting at 15 USD resource/hour

• Flexible cancellation policy

Softheme Mission: Softheme mission is to create better applications for a better world.

Softheme does not save on specialists and equipment but rather optimizes process and operations applying profound industry experience and knowledge.

Testimonials: “We selected Softheme basing on: (1) Softheme's experience in conducting Data Mining projects, their experience in previous implementations of algorithmic components, rule based and real-time expert systems, data query optimization, (2) Understanding of our SOWs, (3) Human resources and infrastructure.” Mark F. on his experience with Softheme’s C# developers

“Over time we had completed several projects from start to finish with Softheme. From the initial analysis of the project scope to detailing the required functionality to implementation and on-time delivery, Softheme required our input mostly on the changes to the initial design and pretty much took care of the rest.” John S. on his experience with Softheme’s Web/Mobile, C#/C++ and QA units

About Softheme

USA Phone: (+1) 202-657-5672

UA Phone: (+380) 44-209-4474

skype: softheme

e-mail: [email protected]

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