Outsourcing Software Development Offshore: Making It Work

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ISBN: 9780849319433 | 0849319439
Cover: Hardcover
Copyright: 11/15/2004

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In Offshore Software Development: Making It Work, hands-on managers of Offshore solutions help you answer these questions:· What is Offshore and why is it an IT imperative?· What do you need to do to successfully evaluate an Offshore solution?· How do you avoid common pitfalls?· How do you confront security and geopolitical risk?· How do you handle issues related to displaced workers?The author applies her considerable experience in the analysis of such Offshore issues as the financial growth of the Offshore industry, keys to success in initiating a program, choosing and managing vendors, risk mitigation, and employee impacts. A detailed program checklist outlines the steps for successful Offshore execution, providing real-world exposure and guidance to a movement that has become a fixture in the IT realm.About the AuthorTandy Gold is a 20-year veteran of the technology industry who is focused on entrepreneurial consulting and innovation. As part of her responsibilities in implementing the first Offshore initiative for a large financial institution, she created a monthly Offshore interest group. Comprised of Offshore program managers from Fortune 100 firms, together they represent more than 40 years of experience in Offshore.

Preface

xiii

Acknowledgments

Section 1 The Offshore Imperative

(110)

1 Crunching the Offshore Numbers: What the Financials Portend

(26)

Welcome to the Definitive Guide on Offshore Outsourcing

(1)

Setting the Stage: The Compelling Offshore Story

(3)

Offshore Outsourcing versus Traditional IT Outsourcing

(9)

Benefits of Offshore Outsourcing

(5)

Impact on the Individual Worker: The Hurdle of Offshore Outsourcing Is Not All Bad News

(1)

Challenges of Offshore Outsourcing

(11)

Critical Success Factors for Offshore Outsourcing

(7)

Risk Management

(3)

Offshore in Microcosm: A Look at the Payback of a "Typical" Offshore Program

(2)

Risk and Offshore: A Final Word

(1)

Chapter Summary

(1)

Notes

(3)

2 Getting Started in Offshore

(52)

Executive Support and Communications: The Key to Success

(3)

A Look at an Example of Enlightened Leadership: Handling Employee Impact at a Northeast Utilities Company

(1)

Well-Planned and Executed Communications: A Critical Success Factor for Offshore Program Initiation

(3)

Establishing the Offshore Program Office for Executive Oversight

(6)

What Are the Steps and Factors Involved in Choosing an Initial Successful Suite of Applications to Offshore?

(2)

What Are the Characteristics of a Good Pilot for Offshore?

(1)

Hiring Outside Expertise: An Initial Look at Getting the Right Kind of Help for Offshore

(9)

Getting the Most out of Expert Consultative Help in Initiating an Offshore Program: A Deeper Look

(2)

Negotiating with Offshore Vendors for the First Time

(3)

Approaching the Measurement of ROI (Return on Investment) When Initiating Offshore

(3)

Defining the Parameters of That All-Important Initial Pilot: A Deeper Look at the Pros and Cons

(2)

Establishing an Initial Timetable for an Upgraded Network Security Infrastructure

(1)

Chapter Summary

(1)

Business Case: A Look at Citigroup (Citi), 17 Years and Counting in Offshore

(5)

Appendix: A Look at Ethics in the Workplace

(13)

Ethics Management Programs: An Overview

(1)

About Ethics Management Programs

(1)

Benefits of Managing Ethics as a Program

(1)

Eight Guidelines for Managing Ethics in the Workplace

(1)

Six Key Roles and Responsibilities in Ethics Management

(1)

Ethics Tools: Codes of Ethics

(3)

About Codes of Ethics

(1)

Developing Codes of Ethics

(2)

Ethics Tools: Codes of Conduct

(2)

About Codes of Conduct

(1)

Developing a Code of Conduct

(1)

Ethics Tools: Policies and Procedures

(1)

Ethics Tools: Resolving Ethical Dilemmas (with Real-to-Life Examples)

(1)

Definition of an Ethical Dilemma

(1)

Real-to-Life Examples of Complex Ethical Dilemmas

(1)

Three Methods to Resolve Ethical Dilemmas

(1)

Method One: Ethical Checklist

(1)

Method Two: Ten-Step Method of Decision Making

(1)

Method Three: Questions to Address Ethical Dilemmas

(1)

Ethics Tools: Training

(3)

Notes

(1)

3 Choosing an Offshore Vendor: A Look at the Offshore Maturity Model

(30)

Ground Rules: A Snapshot of the Current Vendor Management Culture of the Fortune 100

(5)

What Are the Differences between Offshore and Other IT Consultant Resource Management?

(4)

Organizational Structure and Span of Control

(3)

Where Does Offshore Vendor Management Belong? Or, to Mandate or Not to Mandate, Offshore Outsourcing?

(3)

What to Look for in an Offshore Vendor

(3)

Automated RFP Tools: Do They Work?

(2)

Negotiating the Offshore Vendor Contract: Do's and Don'ts

(7)

The Offshore Maturity Model: Anticipating Vendor Management for the Organization Mature in Offshore

102

(3)

Strategic View: Integrating the Offshore Vendor within an Overall Context of Resource Management

105

(2)

Summary: Keys to Success in Offshore Vendor Management

107

(1)

Appendix: The View from Gartner

108

(1)

A Look at India for Offshore Sourcing Options

108

(1)

Bigger Is Not Necessarily Better

109

(1)

Notes

109

(2)

Section 2 A Hands-On Offshore Program Management Toolkit

111

(138)

4 Choosing Locations for Offshore: Country Pros and Cons

113

(20)

Country Strengths and Weaknesses: A Look outside India

114

(9)

Why Offshore Services Leadership in India, and Why Now?

123

(5)

What Is the Current State and View of Offshore?

128

(4)

Chapter Summary

132

(1)

Notes

132

(1)

5 The Offshore Program Checklist: What's Really Different?

133

(72)

The Offshore Program Checklist: Laying the Groundwork for a Successful Offshore Program

135

(14)

Step 1. Program Manager: Establish Offshore Program Strategic Objectives

136

(1)

Step 2: Establish Vendor Interface Guidelines

137

(2)

Step 3: Create Communications Plan

139

(1)

Step 4: Initiate a Systemwide Review of Vendor Consents

139

(3)

Step 5: Establish a Programwide Risk Management Program

142

(1)

Step 6: Establish Program Documentation Guidelines

143

(1)

Step 7: Define Offshore Methodology

144

(5)

The Offshore Project Manager Checklist

149

(27)

Pre-Work: Validate Application Risk Level for Offshore

149

(2)

Pre-Work: Validate Software License Vendor Consents

151

(1)

Month 1: Establish SOW for Offshore Application

151

(5)

Month 1: Validate Operational Requirements

156

(1)

Month 1: Application Risk and Compliance

156

(1)

Month 2: Support Redeployment of Affected Employees

157

(1)

Month 2: Form the Stage One Onshore and Offshore Team

158

(2)

Months 1 and 2: Create Detailed Project Plan

160

(1)

Month 2: Create Offshore Project Issues List

160

(2)

Month 2: Create Offshore Functional Specifications

162

(1)

Month 2 to 3: Complete Offshore Application Handbook

162

(3)

Month 2 to 3: Proceed with Offshore Resource Hiring Process

165

(1)

Months 3 to 6: Proceed with Structuring of Knowledge Transfer

165

(1)

Months 3 to 6: Proceed with Execution of Knowledge Transfer

166

(4)

Month 2 to 3: Complete Offshore Operations Guide

170

(1)

At Offshore Launch

171

(3)

Phase 1: Validation via Go/No Go

171

(3)

Phase 2: Offshore Team Returns

174

(1)

Phase 3: Final Acceptance

174

(1)

Post-Launch: Monitor SLAs

174

(1)

Post-Launch: Monitor Offshore Application Performance

175

(1)

Program and Project Checklist - Final Thoughts

176

(5)

Section 3 The Offshore Program Challenge

181

(2)

6 Managing Employee Impact: Villain or Savior?

183

(1)

The Case for Ethics as Good Business: Strategic Resource Management for Offshore

183

(1)

Looking Beyond the Popular Press Sound Bite: What Is the Threat of Offshore to Today's IT Workers?

184

(4)

Strategic Resource Management: Challenge of the Decade?

188

(5)

Affected Workers: Recommendations and Logistics for Offshore

193

(3)

The Employee Placement Program: Recommendations and Logistics

196

(3)

Offshore: Impact on the Future of IT

199

(2)

Appendix: The Inherent Value of jobs

201

(2)

An Article from Business Respect

201

(2)

Notes

203

(2)

7 Managing Risk through an Offshore Network Security Architecture

205

(30)

Macro-Level Program Risks: A Baseline

212

(8)

Macro Risk I: Lack of Clear Communications Handoff between Offshore and Onshore Team (Low)

213

(1)

Macro Risk II: Offshore and Onshore Team Turnover Negatively Affects Performance or Program Costs Due to Additional Knowledge Transfer, Visa, and Other Training Delays or Costs (Medium)

213

(1)

Macro Risk III: Regulatory, Privacy, or Legal Compliance Violation(s) (Medium)

214

(2)

Macro Risk IV: Negative Employee Perception of Offshore Program Due to Perceptions of Job Instability (High)

216

(1)

Macro Risk V: Operations Schedules Could Affect Offshore Program Requirements (Low)

216

(1)

Macro Risk VI: Security Breach of Offshore Facilities (Low)

217

(1)

Macro Risk VII: Offshore Vendor Financially Insolvent (Low for Large Vendors)

218

(1)

Macro Risk VIII: Threat of War; Geopolitical Concerns (Medium)

218

(1)

Macro Risk IX: Vendor Does Not Meet Performance Criteria (Low)

218

(1)

Macro Risk X: Regulatory Changes in the Offshore Country That Negatively Affect Ability of Vendor to Fulfill Contract (Low)

219

(1)

Macro Risk XI: Negative Customer Perception Due to Bad Press Related to Offshore (Low)

219

(1)

Macro Risk XII: Network Failures Make Offshore Personnel Hard to Reach for Critical Communications (Low)

219

(1)

Macro Risk XIII: Ineffective Disaster or Application Recovery Planning (Low)

220

(1)

Application-Specific Program Risks

220

(1)

Appendix A

221

(6)

A Veteran's View of Network Design for Offshore Outsourcing

221

(6)

Introduction: Profile of a Successful Network Architect

221

(2)

Successful Network Security Architecture Design Principles for Offshore Outsourcing

223

(1)

Executing a Successful Network Security Architecture for Offshore Outsourcing

224

(3)

Appendix B

227

(2)

For Geeks Only: More Detail on Offshore Network Architecture - A Step-by-Step Guide

227

(2)

Step (1) Define Remote Access Needs

227

(1)

Step (2) Evaluate Policy and Regulatory Compliance

228

(1)

Step (3) Document and Assign Costs to Each Solution Level

228

(1)

Step (4) Evaluate

228

(1)

Appendix C

229

(4)

H-1B Visa Overview

229

(2)

"1B Bill 2000 Passes!

229

(2)

H-1B Visas Drop, L-1 Abuses Come to Light

231

(1)

Note from U.S. Department of State Web Site

232

(1)

Notes

233

(2)

8 Pulling It All Together: Top 10 Do's and Don'ts of Offshore

235

(14)

The Top 10 "Do's and Don'ts" of Offshore

236

(10)

Appendices

246

(1)

A Final Word from Some Members of the Offshore Interest Group

246

(1)

Offshore Considerations for the IT Executive

247

(1)

Challenges of [Offshore] Leadership

247

(1)

Notes

247

(2)

Index

249

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Outsourcing Software Development Offshore: Making It Work

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