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Lunch and Learn, Pitfalls and Best Practic, Preses Around Outsourcing Software Development, Presented by Neubloc
1.
The Dos and
Don'ts of Outsourcing the Design and Development of Software Products Many companies have traditionally outsourced software development (with mixed results) largely because of the financial benefits that are available through the use of off-shore labor. More and more, it makes sense to consider outsourcing for additional reasons, including: The need to tap into the increasingly global talent pool The difficulty associated with building a full team and the associated infrastructure The need to access high-level talent such as design for usability experts, architects, and program managers At this Lunch and Learn, Neubloc will cover when (and when not) to consider outsourcing software design and development. We will look at common pitfalls of outsourcing as well as covering best practices. While the emphasis will be on software development, the discussion should be useful with respect to outsourcing in other areas, including hardware development and business practice outsourcing. © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
2.
The Dos and
Don'ts of Outsourcing the Design and Development of Software Products Armando Viteri CEO Bruce Hunter Director of Business Development November 18, 2005
3.
Agenda Introductions--Tell us
who you are and what you’d like to get out of today Overview of Neubloc Why consider outsourcing software design and development What to look for in a outsourced partnership What to outsource for established companies Additional outsourcing pitfalls Summary of best practices Q&A If Time and Interest: Some Neubloc Portfolio Examples © Copyright 2008 by Neubloc, LLC. All rights reserved. Phone: (858) 678-0170 | www.neubloc.com
4.
About Neubloc We
are a San Diego-based firm that helps other companies build software products such as EnterpriseApplications, Social Media Applications, Mobile Apps, and Embedded Applications We act as a virtual design and engineering department for a range of software companies (startups to Fortune 500) © Copyright 2010 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
5.
Neubloc Services Product Strategy
and Design What is your market? Who are your users? How do increase adoption and reduce training/support? How do you craft the roadmap? Application Product Development Architecture Program Management Development Test Embedded Product Development © Copyright 2010 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
6.
Why Outsource Software
Product Design? Leverage specialized expertise during key periods of product development UsabilityExperts Graphic and Creative Designers Architects—application level, database level, etc. Outsourcing product design encourages innovation by allowing for fresh perspectives 3rd party validation of scope and cost © Copyrigh 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
7.
Why Outsource Software
Development? Focus on core business versus engineering management Fast time-to-market by leveraging existing infrastructure Recruitment Development infrastructure Project Management Build System Test System Bug Tracking Engineering Management More predictable outcome Talent pool Access to a global talent pool when local talent is hard to find Ability to leverage global talent pool Labor arbitrage Companies can flexibly expand their development bandwidth when internal teams are maxed out © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
8.
But offshore projects
do go fatally wrong Outsourced vendors can stumble horribly: Company failure “Double dipping” on resources assigned IP theft When they are offshore there is little recourse Are you going to chase them through their local court system? Most of the time the problems are less obvious but still serious Offshore project management leads to poor implementation or long, costly delays Offshore companies may not have the ability to get the visas required to get personnel onsite fast. Using 3rd party firm as staff augmentation versus part of the team © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
9.
What to look
for in an outsourced relationship? Single reliable established vendor US based headquarters, key management and project management Preferably full services Design Development Maintenance Critical IP development within the confines of countries with have IP agreements with the US © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
10.
What to outsource
for established companies? Rapid prototyping of unknown/unproven technologies. This frees resources internally to evaluate results and determine their usability in the Enterprise Reverse engineering of legacy and/or undocumented applications. Every company has those skeletons in the closet…sooner or later they need to come out. Code Migrations. This requires an enormous amount of time to analyze cryptic data, set up the transfer process, test and perform the migration. In addition, offshore works great for setting up and cleaning up data to prepare the migration. Your classic software development projects. Here it is strongly recommended that your offshore partner is part of the team as close as possible to inception. This helps to clearly define the scope of the offshore responsibilities. Testing and maintenance. These are major areas for effective use of offshore resources. Source: Erich Kreidler, USC © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
11.
Additional Pitfalls to
Avoid Hiring a single developer Dependent on him or her to finish the project, and to finish the documentation before they leave Single person has to fill many roles, including user interface, application design, database design, and test. Going too long between iterations Prevents you from having the opportunity to monitor progress and to course correct Leads to surprises Creating a rigid relationship by insisting on fixed costs Stifles innovation Focuses time on contractual issues © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
12.
Summary of Best
Practices Single reliable established partner Make sure there are stateside project champions With product development, priorities and features change Global resources not always attuned to U.S. management style Treat the team like your internal team Regular project reviews with updates on costs and schedules as well as opportunity to review interim deliverables Make sure you consider intellectual property Best to deal with U.S. company Make sure they back end development is done in safe places © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
13.
Questions? © Copyright 2009
by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
14.
Mobile Check Deposit Customer:
Mitek End Customers: Banks © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
15.
Corporate Learning Management Customer: GeoLearning End
Customers: Corporate Training Departments © Copyright 2010 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
16.
Patent Research and Management Application Customer:
Ibex End Customers: IP Attorneys © Copyright 2010 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
17.
RFID Shipping System Customer:
Eggs Overnight End Customers: Corporate shipping departments © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
18.
Storage Device Development
Neubloc is now integral to all aspects of software development at a Fortune 500 company providing disk storage devices. Services provided are firmware development, quality assurance, development of testing tools and development of core software. Technologies used are C/C++. © Copyright 2009 by Neubloc, LLC. All rights reserved. Phone: (619) 578-2873 | www.neubloc.com
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