IT OFFSHORE DEVELOPMENT MANAGEMENT A PROJECT MANAGER S PERSPECTIVE. David Jones VP Professional Services Alvand Solutions

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1 IT OFFSHORE DEVELOPMENT MANAGEMENT A PROJECT MANAGER S PERSPECTIVE David Jones VP Professional Services Alvand Solutions

2 AGENDA Introductions Determining Which Projects to Offshore Offshore Management Framework Break Managing an Offshore Team Case Study Q&A

3 INTRODUCTIONS Name Company or Industry Position Experience with Offshore Projects

4 DETERMINING WHICH PROJECTS TO OFFSHORE Project Selection Partner Selection Common Problems Risks

5 PROJECT SELECTION Criteria Well Defined Little Potential for Change Repetitive Work Website Development Data Conversion Minimal Customer Interaction

6 PROJECT SELECTION Overcoming Objections Build a Solid Business Case Long-term Benefits Communicate the Reasons for Offshoring the Project Dealing with Skeptics

7 PARTNER SELECTION What to Look For Business Stability Financial Well Established Project Portfolio Complexity Similarity with Your Project Internal Processes Flexibility Previous Experience Working with a US Organization Familiarity with U.S. Culture, Corporate Life

8 PARTNER SELECTION Resource Selection Technical Interview Comparable to US-based Resources Communication Skills Clear, Effective Communication Verbal and Written Proficiency Interpersonal Skills Team Player Confident in Own Ability

9 PARTNER SELECTION Legal Contract Collaborative Approach Avoid the Winner s Curse Exit Strategy SLA Clearly Defines Expectations Responsibility Accountability

10 COMMON PROBLEMS Poor Communication Lack of Communication Between PM and Offshore Team Poor Planning Communication Protocol Time Zone Differences Communication Infrastructure in Offshore Country Relationship Building Executive, Managerial and Operational Levels

11 COMMON PROBLEMS Inexperienced Resources One Experienced Resource Managing Multiple Inexperienced Resources Resource Inability to Make Informed Decisions Lack of Business Understanding

12 COMMON PROBLEMS Lack of Accountability Poor Team Management Lack of Structure Inefficient Task Tracking No Single Point of Contact No Mentoring No Empowerment SLA Not Being Enforced

13 COMMON PROBLEMS Onshore Experience No Understanding of Your Corporate Culture and Environment Limited Exposure to US Culture, Customs, and Work Environment

14 COMMON PROBLEMS Unrealistic Expectations Offshoring is Not a Quick Fix or Short-term Option Significant Financial Savings Savings are Better Reflected the Year Following the Transition Offshore Speed of Development Time to Market

15 RISKS Risks Scope Creep Cost Reduction Expectations Data Security Loss of Business Knowledge Failure to Deliver Government Oversight and Regulation Culture Turnover of Key Personnel Both Offshore and Onshore Knowledge Transfer Onshore Productivity Decline as Offshore Team Gets up to Speed

16 OFFSHORE MANAGEMENT FRAMEWORK Overview Governance Management Technical Communication

17 OFFSHORE MANAGEMENT FRAMEWORK Overview Purpose Multi-Layered Governance Management Technical Communication Developed by K. Mohan Babu Authored Offshoring IT Services

18 OFFSHORE MANAGEMENT FRAMEWORK Governance Layer Requires Executive Involvement from both Organizations Focus Areas Offshore Development Strategy Defining the Working Model Articulating, Measuring, and Monitoring the SLA Stakeholder Management Dispute Resolution

19 OFFSHORE MANAGEMENT FRAMEWORK Management Layer Emphasis on Project and Program Management Leverage Body of Knowledge PMBOK General Management Knowledge Organizational Tools and Practices Project Planning and Tracking Contract Management Technical Tools and Templates Quality Assurance Experience and Knowledge Mentoring Best Practices Globalization and Cultural Awareness

20 OFFSHORE MANAGEMENT FRAMEWORK

21 OFFSHORE MANAGEMENT FRAMEWORK Technical Layer Focus on Execution Documentation, Development, Quality and Delivery Defines Key Roles and Responsibilities Onshore and Offshore Drives Coordination and Communication at the Technical Level Synchronizes the Efforts of Technical Resources

22 OFFSHORE MANAGEMENT FRAMEWORK

23 OFFSHORE MANAGEMENT FRAMEWORK Communication Layer Key to Project Success Focus Areas Communication Protocols Communication Infrastructure and IM Skype Face-to-Face Meetings Optimizing Time Differences Big Challenge Schedule Meetings at Overlapping Times

24 OFFSHORE MANAGEMENT FRAMEWORK

25 BREAK Break Please be Back in 15 Minutes

26 MANAGING AN OFFSHORE TEAM Communication People Management Cultural Differences Project Management Methodology

27 MANAGING AN OFFSHORE TEAM Communication Language Low Context vs. High Context Languages Concepts of Time Monochronic Task Focused Polychronic Focused on Relationships and Human Interaction Personal Space Use of Language Body Language and Hand Gestures

28 MANAGING AN OFFSHORE TEAM Communication Time Zone Differences Communication Protocols Communication Tools Instant Messaging Conference Calls Skype

29 MANAGING AN OFFSHORE TEAM Communication Bi-Directional Clear, Concise Communication Reduce Ambiguity Verify Understanding Consistent Follow Up Be Responsive Opportunity to Teach Offshore Team about US Culture and Customs

30 MANAGING AN OFFSHORE TEAM People Management Morale Develop Esprit de Corps Emphasize Working Towards a Common Objective Be Consistent Consider Cultural Influences

31 MANAGING AN OFFSHORE TEAM Cultural Differences Project Manager Needs to Understand Offshore Culture History Public Holidays Religious Practices and Holidays Sports and Recreation

32 MANAGING AN OFFSHORE TEAM Cultural Differences UC Berkeley Geography Professor Michael Watts on Cultural Differences

33 MANAGING AN OFFSHORE TEAM Project Management Methodology PMBOK vs. Agile Cultural Differences May Favor One Method Pick and Choose What Works For Your Unique Requirements and Environment

34 CASE STUDY Case Study Differences Between Offshoring IT Projects to Colombia Compared to Other Countries

35 Q&A Your Questions

36 ABOUT ALVAND SOLUTIONS At Alvand Solutions our goal is to become a trusted partner to our clients by providing world class technology solutions and professional services. We strive to deliver significant value to organizations through the innovative implementation and support of IT solutions. Our Management of Offshore Development Projects, Enterprise Data Protection, and Application Development Services offerings will help secure your return on investment. To learn more visit us at Alvand Solutions, LLC. All rights reserved. All product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. These materials are subject to change without notice. These materials are provided by Alvand Solutions and its affiliated companies for informational purposes only, without representation or warranty of any kind, and Alvand Solutions shall not be liable for errors or omissions with respect to the materials. The only warranties for Alvand Solutions products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty.

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