Best Practices for Launching and Managing Outsourcing Subsidiaries

1. Best Practices for Launching and Managing Outsourcing Subsidiaries Vladimir L Pavlov, INTSPEI Chairman and Chief Strategy Officer http://www.intspei.com

2. Agenda http://www.intspei.com

3. Global 500 Companies http://www.intspei.com

4. Productivity Strategies for a Software Company http://www.intspei.com

5. How Can INTSPEI Help You Grow Productivity of Your Employees? http://www.intspei.com

6. Cost to Correct Maintenance Requirements Construction Architecture DetailedDesign Detailed Design Architecture Construction Requirements Phase That a Defect is Created Phase That a Defect is Corrected SDLC Fine-Tuning • 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 Cost to correct a defect greatly depends on how early it was introduced and revealed http://www.intspei.com

7. 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

8. Agenda http://www.intspei.com

9. 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

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

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

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

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

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

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

16. Identify Identify Analyze and Prioritize Analyze and Prioritize Risk Statement Risk Statement Risk Assessment Document Risk Assessment Document Plan and Schedule Plan and Schedule Control Control Top n Risks Top n Risks Learn Learn Track and Report Track and Report Risk Database, Risk Concepts and Processes Risk Database, Risk Concepts and Processes Risk Management for Software Outsourcing Projects CEE Western Europe / USA http://www.intspei.com

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

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

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

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

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

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

23. 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

24. CEE Job Market Specifics ? http://www.intspei.com

25. Agenda http://www.intspei.com

26. 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

27. SDC In-A-Box: The Process http://www.intspei.com

28. SDC In-A-Box: Two Ownership Options http://www.intspei.com

29. Money-Back GuaranteeAvailable for a period of 30 days after our services are completed 10% Discount for Participants of the CEE Outsourcing Summit Available for a period of 6 months after the conference http://www.intspei.com

30. Next Steps http://www.intspei.com

31. 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