Setup & India by

Transcription

1 Maturity Off-shore development center (ODC) Setup & India by 1 Off-shore development center (ODC) Setup & India satish@sangsoft.in

2 Objective Maturity This presentation is intended to provide an overview of various options for off-shoring activities mainly ones from the IT field to India. It discusses various ODC models, their advantages and limitations. It also provides some insight into challenges faced and ways to tackle them in setting up and managing ODC. Of-course, it also provides details of 's capabilities, methodologies and approach in setting up ODC for the clients, evolved over last 10 years. 2

3 About us Maturity Established in: June 2013 at Pune (130 kms from Mumbai) Team size: 20+ (across the group companies) Technical skills: Desktop and web-applications using.net, php and Java. Database development and admin for Oracle, SQL server and MySQL, Mobile application for Android and iphone Business Domains: ODC setup & operations, E-governance, Accounting, Passenger Logistics, e-learning modules. Key People: Satish Bhagwat: 20+ years in software industry & managing ODCs 3

4 About us - Experience Maturity Comjell School Management, Germany International Customer Loyalty Program,UK NMBM, South Africa Thane Municipal Corporation, India Swayam Shikhan Prayog, India 4

5 Maturity Advantages of software development and support work has become a regular working model for companies of all sizes in last few years. needs different management approach than that of local model to reap maximum benefits from it. Few key advantages of the offshoring model are: 1. Cost benefit: The top-most to be recognized, the driving factor for most offshoring projects. In India the costs for offices, infrastructure and the staff are significantly less, which leads to substantial cost savings. 5

6 Maturity Advantages 2. Skilled Resources: Secondly, availability of skilled people with relevant experience and communication skills. Indian IT industry has majorly grown on offshoring and hence skills not just technical but also for process competency for model are available amply. 6

7 Maturity Advantages 3. Faster Turn-around: In a matured offshoring setup, different time-zones of the offshore and on-site offices is used effectively to improve the productivity. The two teams can work in relay model, where offshore team hands over the daily work to on-shore team for QA/feedback. This is also sometimes termed as follow the Sun methodology. Also more resources can be deployed on the need basis, for specific period, which greatly improves the project time-lines and client can achieve faster time to market. 7

8 Challenges Maturity challenges are typically more of legal and HR related and less of technical. These are mainly due to cultural differences between the client and offshore team. It is therefore important to identify an offshore partner like who is experienced in handling the cultural gaps and of-course competent to handle software setup of your desired team size. 8

9 Challenges Maturity(continued...) Cultural differences: This key issue can lead to under-productive team resulting into delays and loosing the offshoring cost benefits These are necessarily small issues like language, cultural habits, leaves, small incentives and others typically resulting due to cultural differences. A competent offshore partner takes care of these by appropriate culture orientation for offshore team as well as the client. 9

10 Challenges Maturity(continued...) Communication with off-shore team: Regular communication with offshore team happens over s, audio calls and once in a while video calls, which are obviously less effective than across-table communication which poses Another major issue that can lead to delays. strongly recommends short visits of 1 or 2 weeks per quarter from both sides to establish an association between team. 10

11 Challenges Maturity(continued...) Communication with off-shore team: cont... Typically we plan for a kick-off meeting where client's product manager visits India for one week of brain-storming and initial planning. Afterward off-shore team members can visit client during implementation phases. At, we strongly believe in speak to communicate and then to document rather than using tools like or Bugzilla to Communicate! 11

12 Challenges Maturity(continued...) Status tracking: Another major issue typically faced by client is tracking of current status. Unlike local model client can not SEE the team and it is hard to know how things are moving, what is the general mood etc. which increases client's anxiety. At Daily status update report for each project is prepared and sent by offshore team lead to ALL stakeholders involved to ensure each member is on the same page. 12

13 Challenges Maturity(continued...) Status tracking: cont. Agile project management methodology SCRUM is used by which provides an incremental delivery (typically weekly) of the software assuring the client of the progress on regular basis. SCRUM also provides great transparency allowing client to know what is achieved and what are the challenges on every-day basis allowing him to step in if needed sooner than later. 13

14 Maturity Maturity maturity typically can be seen as how much control the client has over it's development team and of-course how effectively it achieves the desired business goals. proposes a four phase migration plan that a client can adopt and establish it's own independent offshore development center in typically in 1 to 2 years. 14

15 Maturity Maturity 1. : This is first phase where client simply gives out the work to offshoring partner and has minimum involvement in offshore team management. (optional, client can start with step 2 directly) 15

16 Maturity Maturity 2. Captive setup: In this step client establishes offshore company and gets a dedicated team leased out from. Client has major involvement in all technical and project management activities. This is a hand-holding phase where client is closely supported by. also helps client in legal and administrative areas of company formation, accounting and local registrations. 16

17 Maturity Maturity 3. Supported phase: In this phase client starts taking more of the ownership in core technical and project management areas, moving key resources on their payroll etc. Client takes support from more on administrative and HR front. This phase is optional and typically can be of 3 to 6 months where client can do self-assessment of his readiness for phase 4 17

18 Maturity Maturity 4. Independent phase: This step is taken once the client is confident in taking the complete ownership of the ODC. Client can continue to take support from in all the areas as per their need. The support from will be more of random need based service provisioning like recruitment assistance, QA or developers on contract for short term etc. Administrative support also can be provided on need basis. 18

19 Maturity Maturity The table below provides a quick overview of OMM providing various activities and the dependency of client on in each phase. Activities Recruitment Project Management Technical and QA Delivery commitments Legal & Administration 19

20 Maturity Maturity The table below provides a quick overview of OMM providing various activities and the dependency of client on in each phase. Activities Recruitment Project Management Technical and QA Delivery commitments Legal & Administration 20 Captive

21 Maturity Maturity The table below provides a quick overview of OMM providing various activities and the dependency of client on in each phase. Activities Recruitment Supported Project Management Technical and QA Need based Client Delivery commitments Legal & Administration 21 Captive

22 Maturity Maturity The table below provides a quick overview of OMM providing various activities and the dependency of client on in each phase. 1-2 years to move from Phase 1 to 4 Activities Recruitment Supported Independent Need based Project Management Need based Technical and QA Need based Need based Client Client Client Delivery commitments Legal & Administration 22 Captive

23 EngagementMaturity models will help client willing to setup ODC in India. Various engagement models are: Advisory model Turn-key model 23

24 EngagementMaturity models Advisory model: provides pure advisory support to client during the setup and running the ODC. Typically we provide an executive director who is responsible for assisting the client mainly in following areas: Company formation and other legal registration. Identifying suitable offices Identifying recruitment channels (HR agency or HR team or both) Setting up HR processes (Salaries, leave and contracting norms) Setting up project management and reporting process (SCRUM) 24

25 EngagementMaturity models Turn-key model: provides complete end-to-end ownership of the ODC setup for client from offshoring phase to independent phase. This is achieved in following steps: 25

26 EngagementMaturity models Turn-key model: Step 01 : Kickoff: Typically we start the project work immediately using 's team and offices there-by kicking off the technical work. Parallely we start admin activities of company formation with one or more executive directors from. 26

27 EngagementMaturity models Turn-key model: Step 02 : Manage: Identify and hire team & offices and set up software and admin processes which are the key to success. The onsite and offshore teams are co-ordinated and trained for offshore model for 12 to 18 months. HR and admin processes are stabilized with client's involvement. 27

28 EngagementMaturity models Turn-key model: Dummy-pic Sangsoft img will be better Step 03 : Handover: Typically over a period of 12 to 18 months client team gains confidence and is ready to handle operations independently. then phases out its directors from client company and goes in service provider mode, where client can still take services from on need basis. 28

29 Next steps... Maturity Send us your high level requirements on to and we will get in touch with you with for taking it further. We will provide you FREE ODC COSTING spreadsheet that will help you perform what-if analysis based on the technology, team size and engagement model. Thank you skype: satish.bhagwat 29