Post on 08-May-2015
description
Offshore Development
Centers (ODC)
+38 (050) 388 49 17
dmitry@bekinin.com Oct, 2011
www.bekinin.com
Why offshore development center?
are good for both startups and existing business
can run one or several software projects simultaneously
can include one or several development and QA teams with different skills
are set up and supported by an outsources service providerusually at their premises and with vendor’s experience and existing infrastructure
ODC Benefits
Quick set up and quick cancelation, no longer-term investments
Reduced costs as compared to onshore labor costs
Reduced costs as compared to offshore full time development team
Transparent (“aquarium” vs “black box”)
Simplified accounting
No problems to visit
ODC Features
Servers as a technology and software engineering extension of customer’s main facility
Allows the customer to focus on business specific while admin routines are being resolved by the outsourcing services vendor
Customer’s 100% ownership
Staff replacement within from a week to a month, no special costs
ODC Flip sides and challenge
Require an intensive communication due to large geographic distances; poor communication makes ODC use it resources inefficiently and increase overall costs
Requires regular assessment of the team to perform necessarily HR adjustments
ODC members are not native English speakers in the most cases.
May require additional trainings in customer’s business domain
Time difference
ODC Flip sides and challenge
The customer may need to get familiar with local HR market, their specific, levels of salaries and professionalism to make effective HR decisions if he want to.
Startups are often don’t have solid development processthe outsourcing vendor has to analyze, recommend and implement…
Roles and responsibilitiesJust enough documentationAgile development, if required
Average time to hire talentsMiddle level engineer: 2 - 4 weeksSenior engineer: 4 - 6 weeksHigh level leader: 4 - 8 weeks
ODC Creation steps
Discuss and create an estimation for the monthly budget.
Consider a particular model of building the team:Hiring new ones or based on existing vendor’s employees or mixed model.
Figure out requirements for the talent expertise, identify the needs of:
Permanent long term employeesContractors for shorter periods of time
Plan infrastructureEquipment workstations and serversOffice desks and spaceNetwork equipment
ODC Creation steps (continued)
Budget sign off
Build a team: hiring process
Set up knowledge transfer, requirements gathering process, training.
Set up communication process:Meeting schedulerReportingPersonal communications
Set up workflows, management systems
Achieve success
Budget components
Salaries, bonuses
Office space costs
Collective taxes
Telecommunications costs
Bank expenses
A fee to the vendor
ODC Service levels
What the customer can do:
- Review all and any costs, costs analyses, suggestions and negotiations for cost reductions or additional expenses.
- HR activities such as:- Conduct interviews- Make hire decisions- Make firing decisions- Motivate - bonuses
- Project management: yes, if customer wishes, and may be hidden if the customer wants so
- Visit ODC: yes, any time
Thank you
Dmitry Bekinin
dmitry@bekinin.com