International Software Productivity Engineering Institute Best Practices

International Software & Productivity Engineering Institute Best Practices for Launching and Managing Outsourcing Subsidiaries Vladimir L Pavlov, INTSPEI Chairman and Chief Strategy Officer http: //www. intspei. com

Agenda INTSPEI Overview Best Practices How Can INTSPEI Help You Launch Your Outsourcing Facility? http: //www. intspei. com 2

Global 500 Companies 1200000 60000 1000000 50000 800000 40000 600000 30000 400000 200000 10000 0 0 Average Impact, USD 2005 2006 2007 http: //www. intspei. com Average Productivity, USD 2005 2006 2007 3

Productivity Strategies for a Software Company Decrease Spending Partner Ecosystem’s Productivity Clients’ Productivity Increase Outcome http: //www. intspei. com Employees’ Productivity 4

How Can INTSPEI Help You Grow Productivity of Your Employees? SDLC Fine-Tuning: Increase Outcome SDC In-A-Box: Decrease Spending http: //www. intspei. com • We will help you optimize your existing software development process • SDLC = Software Development Life Cycle • We will help you create your new software development subsidiary in Eastern Europe • SDC = Software Development Center 5

SDLC Fine-Tuning Cost to correct a defect greatly depends on how early it was introduced and revealed Cost to Correct Maintenance Requirements Construction Architecture Detailed Design Construction Phase That a Defect is Created Architecture Requirements Phase That a Defect is Corrected http: //www. intspei. com The most important decisions (and most expensive mistakes) are done at the beginning of the project The initial amount of quality control is minimal and then grows as development moves forward. This results in a costly rework (often hidden) on the late stages of the project INTSPEI SDLC Fine-Tuning addresses this problem. We enable our clients to reduce delays between bug insertions and bug fixes After SDLC Fine-Tuning, your engineers will start discovering and fixing critical mistakes virtually immediately when introduced - not at the late phases where they are the most expensive to resolve 6

SDC In-A-Box Turn-key outsourcing solution: INTSPEI creates a software development subsidiary for a client Currently we offer our services in Armenia, Belarus, Russia and Ukraine We can also help our clients to launch a subsidiary in any other Eastern European country INTSPEI cares about everything – hiring, facility, logistics, local legal requirements, business-processes, etc. The development center is launched as client’s subsidiary Alternatively, it can be created as INTSPEI subsidiary and then (when the client feels comfortable) the ownership is transferred to the client http: //www. intspei. com 7

Agenda INTSPEI Overview Best Practices How Can INTSPEI Help You Launch Your Outsourcing Facility? http: //www. intspei. com 8

Awareness Of Geo Difference Recommendations For USA / Western European Companies Learn differences between CEE countries Learn differences between the capitals and “regular” cities Recommendations For Eastern European Companies Benchmark your offerings against global market Do not be afraid to outsource to the USA / Western Europe Focus on natural partnership opportunities http: //www. intspei. com 9

Integrity Recommendations For USA / Western European Companies Do not plan to do in CEE anything you would not do in your own country http: //www. intspei. com Recommendations For Eastern European Companies Learn about the USA Foreign Corrupt Practices Act 10

Consistent Business Processes Recommendations For USA / Western European Companies Recommendations For Eastern European Companies Learn about the Use the same business processes Foreign Corrupt USA for all sub-teams Practices Act Utilize process-patterns for distributed teams http: //www. intspei. com 11

MSF Team Model Solution Delivery Solution Design Program Management Architecture Solution Definition Product Management Solution Construction Development Advocacy User Experience Solution Usability Test Release / Operations Solution Quality Solution Deployment http: //www. intspei. com 12

MSF Team Model for Software Outsourcing Projects CEE Western Europe / USA Program Management Development Product Management Test Architecture User Experience Release / Operations http: //www. intspei. com 13

Best Practice: In Software Outsourcing Projects All Functional Areas Should be Covered on Both Sides CEE Architecture USA / Western Europe Program management Architecture Development Product Management User Experience Release Mngmnt Test http: //www. intspei. com Test Release Management 14

MSF Risk Management Discipline Identify Analyze and Prioritize Risk Statement Control Learn Risk Database, Risk Concepts and Processes http: //www. intspei. com Risk Assessmen t Document Top n Risks Plan and Schedul e Track and Report 15

Risk Management for Software Outsourcing Projects CEE Identify Analy ze and Prioriti ze Risk Statement Control Risk Database, Risk Concepts and Processes Lear n Western Europe / USA Risk Assessm ent Docume Top n nt Risks Track and Repo rt http: //www. intspei. com Plan and Sche dule Identify Analy ze and Prioriti ze Risk Statement Control Risk Database, Risk Concepts and Processes Lear n Risk Assessm ent Docume Top n nt Risks Track and Repo rt Plan and Sche dule 16

Best Practice: One Transparent Risk Management Process for All Sub-Teams CEE US A/ Western Europe Analyze and Prioritize Risk Statement Identify Control Learn Risk Database, Risk Concepts and Processes http: //www. intspei. com Risk Assessmen t Document Top n Risks Plan and Schedule Track and Report 17

IBM Rational Unified Process Phases Disciplines Inception Elaboration Construction Transition Business Modeling Requirements Analysis & Design Implementation Test Deployment Configuration Mgmt Management Environment Preliminary Iteration(s) Iter. #1 Iter. #2 Iter. #n+1 #n+2 Iter. #m+1 Iterations http: //www. intspei. com 18

RUP Disciplines For Software Outsourcing Projects CEE http: //www. intspei. com Western Europe / USA 19

Best Practice: All RUP Disciplines Span All Offices CEE Inception Elaboration http: //www. intspei. com USA / Western Europe Construction Transition 20

Project Postmortem CEE POSTMORTEM http: //www. intspei. com Western Europe / USA POSTMORTEM 21 21

Best Practice: “Big Postmortem” For All Project Stakeholders CEE USA / Western Europe P O S T M O R T E M POSTMORTEM http: //www. intspei. com POSTMORTEM 22

Relations With Local Universities Recommendations For USA / Western European Companies Recommendations For Eastern European Companies Build relations with local universities Establish your own educational facility http: //www. intspei. com 23

CEE Job Market Specifics ? Two of CEE countries (Russia and Ukraine) are in the list of Top 5 the most educated countries in the world http: //www. intspei. com CEE software companies cry that there are not enough qualified resources on local job market 24

Agenda INTSPEI Overview Best Practices How Can INTSPEI Help You Launch Your Outsourcing Facility? http: //www. intspei. com 25

SDC In-A-Box Turn-key outsourcing solution: INTSPEI creates a software development subsidiary for a client Currently we offer our services in Armenia, Belarus, Russia and Ukraine We can also help our clients to launch a subsidiary in any other Eastern European country INTSPEI cares about everything – hiring, facility, logistics, local legal requirements, business-processes, etc. The development center is launched as client’s subsidiary Alternatively, it can be created as INTSPEI subsidiary and then (when the client feels comfortable) the ownership is transferred to the client http: //www. intspei. com 26

SDC In-A-Box: The Process Defining Scope Of Work • Client and INTSPEI agree on the list of people to hire, office space requirements, business processes, budget, etc. • 5 -30 days Launching the Software Development Center • INTSPEI sets up an office for the client, deploys the infrastructure, hires people, performs the paperwork to meet local legal requirements, etc. • 2 -5 months Managing Current Operations (optional) • INTSPEI manages outsourcing office • As many months as the client needs http: //www. intspei. com 27

SDC In-A-Box: Two Ownership Options Client • Software Development Center is owned by the client from the very beginning INTSPEI • Initially INTSPEI owns the Software Development Center • As soon as the client feels comfortable, the ownership is transferred to the client http: //www. intspei. com 28

International Software & Productivity Engineering Institute 10% Discount for Participants of the CEE Outsourcing Summit Available for a period of 6 months after the conference Money-Back Guarantee Available for a period of 30 days after our services are completed http: //www. intspei. com

Next Steps Assess your company’s productivity strategy: • Employees’ productivity? • Productivity of your customers? • Productivity within your partner ecosystem? Contact INTSPEI Order INTSPEI services: • Talk to me at a coffee-break • Mail me at vlpavlov@intspei. com • SDLC Fine-Tuning to increase outcome of your engineering process • SDC In-A-Box to bring down the costs of your engineering process http: //www. intspei. com 30

International Software & Productivity Engineering Institute Thank You This presentation was delivered on September 12, 2007, in Kiev on the First CEE Outsourcing Summit You can download it from http: //www. vlpavlov. com http: //www. intspei. com