Trends in Software Outsourcing Best Practices www.softheme.com

Table of Contents Selecting a vendor critical factors » business expectations » relationship control » success / failure Applying effective outsourcing strategy focusing on outcomes » monitoring the development cycle Managing risks risk categories » risks mitigations Signing service level agreements goals & objectives » performance measurement » processes & practices » knowledge/data transfer » technology & services evolution » client-vendor relationships www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

Selecting a vendor Accounting for the most critical factors: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices part of the project in the vendor's portfolio investing in training, case studies, experience quality control, development cycle management & communication selection criteria, labor pool flexibility to change reflecting customers’ business needs and processes

Selecting a vendor Setting business expectations: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices goals values background getting to know your partner

Selecting a vendor Setting business expectations: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices Understanding the combination of:

Selecting a vendor Keeping control of the relationship: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

Selecting a vendor Measuring success, handling failures: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices saved costs new tools, functionality, performance processes function without major involvement of the management team decreased time for management/communication customer satisfaction

Applying effective outsourcing strategy Focusing on outcomes: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

Applying effective outsourcing strategy Monitoring the development cycle: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

Managing risks www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

Managing risks Risk categories: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices operational strategic legal financial

Managing risks Risks mitigations: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices Utilize technology: tools for tracking communication automated tools for tracking task tools for measuring progress/performance Manage knowledgebase: technical documentation knowledge transfer within the teams Control the process: make sure the processes are integrated communicate regularly maintain formal specifications receive and analyze reports conduct reviews / provide feedback Measure the deliverables: quality timeliness skills and capabilities Adjust the contract: test possible scenarios introduce incentives and penalties share risks and rewards utilize control risks adjust manage measure

Signing service level agreement Focusing on outsourcing goals and objectives: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

Signing service level agreement Measuring performance: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices agree on a clear performance metrics choose pricing model which reflects performance improvement introduce incentives for ideas and solutions which result in performance improvements include penalties Defining processes and practices: make sure the processes and procedures are flexible enough business specific aspects should be taken into account when defining processes

Signing service level agreement Knowledge and product data transfer aspect: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices the mitigation strategy in case the team member leaves should be in place the transition strategy in case of switching to another provider: data relocation procedures code stored on the client side technology corresponds the project tasks documented code security aspect: access to logs, backup policies modular access to the project data access levels defined for every team member architecture addresses functional and non-functional requirements

Signing service level agreement Evolution of technology and services: new technologies on the market a need in newer equipment training on new technology trends reviewing the pricing model www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices

Signing service level agreement Client-vendor relationships: www.softheme.com » Outsourcing to Softheme™ Trends in Software Outsourcing: Best Practices spread the responsibility possible changes and improvements on both sides additional costs : training meetings effective collaboration model: onsite and offsite team structure both parties should be responsible for risks within their control equipment need in new services

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