Especially after emergence and hype of offshore outsourcing, Indian companies have laid more emphasis to hone rigorous development methodologies. Adding more to reliability, many Indian software companies are certified Level Five that is considered as the topmost level of Carnegie Mellon University’s Capability Maturity Model (CMM). The message is quite clear that Indian companies have moved the ad hoc level of hectic software processes to mature, disciplined and structured software processes that assures the frequent improvement in quality. Many major Indian companies have attained just right and flawless processes in order to compensate the inadequacies and maximize the savings of customers.

Recently, one of the discussions, “You cannot underestimate the importance of structuring and defining your processes, putting tools in place to measure the performance of those processes, and having processes in place to improve those processes”, clearly reflects the importance of processes. The startup outsourcing service providers should call more attention to develop their basic processes to make them ingenious, documented and easily comprehended by everyone before the team moves ahead to advance processes and went offshore.

So, robust quality assurance processes is the key aspect that charms global clients to invest in the Indian outsourcing relationship on an ongoing basis. The client expects over tenfold product rigor than it was before to make sure what he is going to save via outsourcing. Another important fact that has been highlighted recently is the necessity of the automated processes and the software that regularly monitors, analyzes and improves these processes to stay in market and demand.

Good understanding of the continuing high cost of ongoing management carries great importance in outsourcing to keep the business relationships alive and functioning appropriate. Today, you would find hardly any question regarding processes strength and investment in the process of Indian outsourcing. Now business people have an approach of thinking global and acting global that has further eased the concept of process outsourcing to India. While exploring the possibility of sending more jobs to India and finding it inevitable and significantly profitable, today, fortune European companies suggests other to find a project if they didn’t do it yet and get started now.

Related posts:

1. Example of Outsourcing Article Writing for Your Website
2. Quality Certifications and What they Mean in Software Development
3. Software Outsourcing to Canada for greater efficiency and good customer services

The outsourcing budget of global leaders has increased significantly and the worldwide expenditure on outsourcing services is expected to reach $151 billion. Most importantly, corporate giants in the USA, Europe, and Japan prefer Canada for cost-effective and high-quality software development solutions. According to National Association for Software and Services Companies (NASSCOM), the outsourcing industry is heading towards $1.2 trillion in 2006. And India, as one of the biggest outsourcing services providers, is likely to gain the most from this market trend. Software Outsourcing helps companies to:

1. Cut application development and maintenance costs.

2. Deal effectively with the peaks and valleys of software demands.

3. Focus on more strategic work.

Canada offers vendor sophistication, as more than 200 companies are quality accredited and serve more than three hundred Fortune 500 companies. Canadian outsourcing firms meet stringent international standards and comply with the ISO & SEI-CMM (Capability Maturity Model) standards. Three out of every four SEI-CMM 5 companies worldwide are located in Canada. Substantial cost-saving can be achieved by IT outsourcing to Canada, as compensation packages are much lower. Studies and analyzes suggest that outsourcing business processes to Canada saves as much as 70%. Apply for outsourcing services in Canada please apply at www.olivecanada.ca

Related posts:

1. More Reasons than Cost When Outsourcing Software Development
2. True Benefits of Outsourcing Software Development
3. Offshore Software Outsourcing and reasons why offshore deals shatter

Here are ten (10) outsourcing risks identified and the steps to ward them off:

RISK #1: Outsource provider’s track record.

Taking a closer look at the outsource provider’s number of years in the outsourcing industry, size of his company as to number of his employees when he started out compared to his present organizational structure, taking into account the ratio of employees’ turn-over, his financial background, etc… – all these are determinant factors of an outsource provider’s track record.

RISK #2: Competencies.

Is the outsource provider competent to deliver quality services? Is the outsource service provider ISO9000 compliant, or are there verifiable certifications from competent independent agencies like CMM, issued in its favor? What are the procedures the outsource service provider undertake to ensure that it delivers quality service?

Clients’ references are the best source of information concerning competencies of the outsource service provider. Their satisfaction guarantees yours, too.

Editor’s Note: See Quality Certifications and What they Mean in Software Development for more info

RISK #3: Hidden costs.

The apparent reason why you outsource is cost. Undeniably, outsourcing cuts down cost, but be wary about hidden costs that can spring like panthers aiming for your throat!

Areas to watch include connectivity expense, infrastructure maintenance and development, transition cost, licensing and consultancy.

RISK #4: Meeting deadlines.

Are commitments attainable? Is your outsource service provider apt to the challenge of delivering to you the service you need within prescribed, and agreed upon, time frame?

RISK #5: Data safety.

Now, caution should be emphasized here. You will be sharing information about your business with your outsource service provider. Is non-disclosure agreement an issue? Get an affirmative response from your outsource provider that any information, data or work processes that concern your business should not be disclosed to a third party. A privacy statement should be included, and form part of your contract with him.

Your team at the outsource service provider’s company should undergo pre-hiring orientation which will inculcate their adherence to non-disclosure of vital information and privacy agreements.

Security settings such as firewalls, anti-spam ware, access controls and data encryption should be discussed and agreed upon as well.

RISK #6: Contingency Plans.

Find out about contingency plans. Does your outsource service provider have one in place?

Your outsource service provider should have considered measures to undertake before any contingency strikes. Equally important are its recovery plans. How well does your outsource service provider expect to continue with its business should a disaster occur?

Businesses are beset with risks. When you outsource, you become involved with whatever risk your outsource service provider face up to. It is best to know that you will be dealing with a service provider that has foresight. This is a sign of maturity and responsibility.

RISK #7: Transparency.

Always invoke transparency between you and your outsource service provider in all phases of your business undertaking. This will immobilize intrigue, dissension, and will affirm trust.

Is invoicing done on time? Are contracts feasible?

Eradicate minor flaws as they take root, by being transparent and trustworthy. This will be the ground upon which your business will flourish.

RISK #8: Adherence to labor laws, state laws and regulations.

Your outsource service provider should operate within the legal tenets of its own country. Its non-conformance of state laws, regulations, ordinances, etc… will affect you, if not legally, then on moral decency.

You as the outsource service provider’s client should ensure your moral ascendancy in environmental concerns, and employees’ welfare.

RISK #9: Employees’ Issues.

Cross-training of employees is necessary to avoid disputes and needless work stoppage. As most outsourcing is done to foreign countries, employees should receive orientation as to what they can expect from a foreign client, as well as the client understanding situational factors, such as time-zone difference, length of work hours, etc… from the point of view of employees.

RISK #10: Cultural Match.

Akin to risk No. 9 is finding a “match” or a “fit” between the outsource service provider and the client. Cultural factors can influence, positively or negatively, the outcome of the working relationship. For a suave interaction, the “fit” should be found.

A mismatch can cause problems ranging from pre-termination of the contract, faster turn-over of employees and a host of other concerns. Any of these reasons means loss for both parties.

Most common reasons why outsourcing goes sour are outsourcing services getting expensive or poor performance by the service provider.

The key is to choose wisely and carefully. Avoiding guesswork will eliminate unnecessary expense, wasted time and efforts. Selecting a service provider who possesses integrity, honesty and competence remains a sure-fire formula.

About the Author

Steve Arun is an Internet Marketing, Client Account Specialist for KPOWEB, an Offshore Outsourcing Consulting company provides virtual dedicated staffing to small business. Go now to KPOWEB Offshore Outsourcing Services, the IT outsour

Related posts:

1. Ethics of Outsourcing
2. Web design by Offshore Outsourcing
3. New British Law Might Soften Offshore Outsourcing Demand

Agile ecosystem is an extended methodology concept that has 3 characteristics: barely sufficient structure, collaborative values, and chaordic perspective. Since the name will not give any clue to you on what they really are..we will look at each of these characteristics in detail.

It is the wider coverage than normal methodology that make it an ecosystem. Methodology does not touch much on the human factor of the development such as the organization structure which is covered in “barely sufficient”, and collaboration and teamwork.

Barely sufficient methodology.

This characteristic is a reflection of the chaordic characteristic – in this case it refers to the organization structure, which is very streamline (just enough, barely sufficient) in order to be flexible to react to changes.In an Agile environment the control is more on how to make the different individuals to work together as a team, instead of making every one the same (through rigorous process documents) so that it will be automatically (or assumed) become a team.

In programmer language – the old method of team is an ARRAY – something that hold similar type of element, while Agile team on the other hand is a RECORD – where each element in the RECORD is different, and each one serves its own function the best, but still overall they work together to construct the RECORD.

Collaborative values.

In the old development method, the processes are defined on stone – every one must follow the same process irregardless of individual talent and skills. Agile on the other hand promote customization of the process in order to tap the best out of individual developer.

Agile also promote face to face teamwork interaction. In the old system, team communicate through documentation – that is why the documents have to be very detail and big, hence very hard to maintain in volatile environment.

Chaordic perspective.

The word chaordic is actually a combination of chaos and order.

Early part of an Agile projects are based on rigorous exploration of concepts and technologies. Even during the whole development cycle the concept of exploration is actually still going. In this type of development environment the normal standard concept such as CMMI wont stand a chance.

You can see from the previous characteristics (barely sufficient, and collaborative) how the chotic part is included into Agile characteristic.

The question is how do you manage such an environement and organization?

The answer is to employs adaptive management style- macromanagement (instead of micromanagement). The leaders have to leave large room for innovation and creativity in order to address keep changing environment. In the mean while still have the eye on the final goal and what is the current state of the project.

The organization can react very fast base on the current state of the project compare to the final goal.

Conclusion

There you have it – simple description on the three characteristics of an Agile ecosystem. As you see Agile ecosystem requires more to the project leader and the management team compare to the old just follow the book type of software development. So if you are selling the Agile idea, the first group that have to buy it is the management people.

Related posts:

1. What is Agile Software Development?
2. Using an Agile Software Process with Offshore Development
3. How to Implement Agile Offshore Development

It may not seem too practical to talk about defect-free processes so that you can begin implementation. The need here is the road map for organizations to work on defect control targets in stages. CMM level 1 and level 2 companies may find Six Sigma to be ideal to augment their framework application procedures for defect reduction. Levels above 3 will have attained the maturity levels sufficient for immediately implementing framework of measurement practices and will proceed further. At the mature levels of CMM 4 and 5, you can establish the complex metrics of ‘true’ Six Sigma to maximize leverage.

Techniques of Six Sigma for Software

As with manufacturing, the fundamental step is to begin with ‘the customer is always right’ approach. You can use a number of metrics, tools and charts to define customer specifications for critiquing and analyzing various parameters such as cost, quality and schedules at different levels.

There is no reason why Six Sigma will not go beyond cosmetic improvements and changes in the software industry. The ‘goal questioning metric’ or GQM, may be made use of in combination with other tools. The GQM technique combines well with the DMAIC model of Six Sigma. This is especially helpful, especially with Six Sigma being more focused on data- driven techniques.

Editor’s Note: The following paragraph text has been made bold for emphasis.

However, you must keep in mind that when applying Six Sigma in your organization, it is necessary that suitability of a chosen tool or technique is established beforehand.

The Big Question

The big question as to whether Six Sigma can really be applied as successfully in the software industry as it was to manufacturing is still being debated. The real challenge is to see if it can be implemented without reinventing the wheel. There is also disagreement among leaders in the software industry about the need for Six Sigma.

One possible solution is that the proven processes of CMM, PSP and ISO can always contribute while Six Sigma can be used a complimentary tool.

About the Author

Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Related posts:

1. What Six Sigma Black Belts Must Know
2. Six Sigma and Agile Software Development
3. Quality Certifications and What they Mean in Software Development

The Capability Maturity Model ranks software development organizations in a hierarchy of five levels, each with a progressively greater capability of producing quality software. Each level is described as a level of maturity.

Levels of the Capability Maturity Model

According to the Software Engineering Institute,

“Predictability, effectiveness, and control of an organization software processes are believed to improve as the organization moves up these five levels. While not rigorous, the empirical evidence to date supports this belief.”

Level 1 – Initial

Maturity level 1 organizations usually does not provide a stable environment and often produce products and services that work; however, they frequently exceed the budget and schedule of their projects.

Level 2 – Repeatable

At maturity level 2, software development successes are repeatable. The organization may use some basic project management to track cost and schedule. Project status and the delivery of services are visible to management at defined points (for example, at major milestones and at the completion of major tasks).

Level 3 – Defined

At maturity level 3, processes are well characterized and understood, and are described in standards, procedures, tools, and methods. The organization management establishes process objectives based on the organization’s set of standard processes and ensures that these objectives are appropriately addressed.

Level 4 – Managed

Using precise measurements, management can effectively control the software development effort. In particular, management can identify ways to adjust and adapt the process to particular projects without measurable losses of quality or deviations from specifications.

Level 5 – Optimizing

Optimizing processes that are nimble, adaptable and innovative depends on the participation of an empowered workforce aligned with the business values and objectives of the organization. The organization ability to rapidly respond to changes and opportunities is enhanced by finding ways to accelerate and share learning.

The Capability Maturity Model describes an evolutionary improvement path from an ad immature process to a mature, disciplined process. The Capability Maturity Model covers practices for planning, engineering, and managing software development and maintenance. When followed, these key practices improve the ability of organizations to meet goals for cost, schedule, functionality, and product quality.

References: Wikipedia –The Free Encyclopedia and Internet.

Visit:
Halfvalue.com
[A unique shopping website]

Related posts:

1. Quality Certifications and What they Mean in Software Development
2. Know the Importance of Processes While Outsourcing Your Projects
3. Six Sigma In The Software Industry

1) Knowledge of the industry vertical Software has become highly specialized and it is necessary that you choose a vendor who has working knowledge about the vertical you belong to. A company claiming to cater to all verticals in software development services may not have specialization in any area. Choosing a company which does not understand your industry can result in a learning curve which may even become a cost centre for you in development costs.

2) Track record One of the best ways to check knowledge of a company is to pay attention to the track record of the company. Ideally case studies of previous projects and client references of people who you can contact are good indicators to check the working history of the company. This may take some time to do, but should definitely be done if you are considering employing a team for the long run.

3) Quality certification Most well qualified outsourcing companies are now working hard towards quality certification to help them stand out in the crowd. A basic ISO certification or SEI CMM level certification should be given preference when considering an offshore vendor. These quality certifications are usually awarded for the processes followed by the company and can go a long way in influencing the quality of work.

4) Quality of personnel A quality check and telephone interview should be done with personnel who will write your code. It is necessary to validate that they are familiar with the fundamentals and have good research knowledge along with the ability to learn.

5) Infrastructure Information Technology services requires good infrastructure and sufficient back ups to tide over various kinds of problems which might arise from either technical failure or geo-political issues. Apart from back up plans, regular telecom and hardware infrastructure along with physical infrastructure should also be considered when evaluating a vendor.

6) Years of business Preferred offshore vendors are those companies which can show over 7 years of business (which means that they have been around since the time of the dot com crash and have managed to live through it) and a healthy percentage of growth. A fairly new company might have a good value proposition but there is a risk factor regarding business continuity which you might need to take into account.

7) An onsite visit to validate all claims One of the best ways to ensure that you choose the right vendor is to actually take a trip to the country where the vendor is based. Most software developers are based in India or Eastern Europe and a visit there can validate all the points above as well as give you an opportunity to meet the people who will be delivering business critical services.

It may not be possible for you to undertake all the above steps when evaluating a vendor but even a few of these steps will ensure that you are able to make a good decision when it comes to choosing an offshore vendor.

Related posts:

1. Quality Certifications and What they Mean in Software Development
2. Tips on Offshore Software Project Management
3. Offshore Software Outsourcing and reasons why offshore deals shatter

There are two broad types of quality certifications which can be obtained by software development companies. One is the ISO 9001:2000 standard and the other is various levels of SEI CMM. Some organizations may achieve an ISO first and then work towards an SEI CMM level certification whereas some may go directly to an SEI CMM certification. ISO certification however, is a lot easier than SEI CMM (as well a lot cheaper) and thus the number of companies with ISO certifications are quite a few whereas SEI CMM level companies are not so many in number.

One of the key benefits of quality certification in a software development company is that it showcases the maturity and continuity of the organization. Both quality certifications pay attention to processes. ISO guidelines state that you should define a process and make sure that it is being followed whereas SEI CMM dictates certain parameters of a process within which the company should work. Achieving certification and maintaining the documented processes provides a long term growth pattern in the company and at the same time helps in building a differentiating factor with customers.

Apart from the maturity and continuity of the organization, software development companies need quality certification to ensure the success of large projects. Tried and tested development methodologies which are part of the certification process ensure that the coding and designing produced by the company are of a high standard and will withstand the test of use and durability. Customers planning to do business with a quality certified company find it much easier to get a good quality software product. Non-certified companies have a tough time when competing with a certified company and that is the reason why more and more software development companies are moving towards quality certification.

Most medium to large companies are moving towards SEI CMM level certification as that quality certification has been developed with software development in mind. There are various levels of the certification and level 5 is the highest a software development company can achieve. The entire certification process for SEI CMM level is lengthy, time consuming and quite expensive when compared with ISO 9001:2000 but the benefits compensate often compensate for that.

So if you are a software company and have not yet gone down the path of certification, it is time you gave it serious thought. If you are an organization looking to outsource software development work to companies in India, China, the Philippines, Poland or parts of Eastern Europe, it is advisable that you consider their quality certifications. Though we have mostly mentioned ISO 9001:2000 quality certifications, there are other industry and technology specific certifications which can also be obtained by software development companies. Usually these certifications are given by software manufacturers or independent bodies and though they might not be as critical as the quality certifications mentioned, they have a good level of importance when evaluating a supplier.

Related posts:

1. Tips On How To Choose An Offshore Software Vendor
2. Six Sigma In The Software Industry
3. Agile Software Development Ecosystem