AAI Partners: Ardin Software Oy, Vantaa ACD Consulting ...€¦ · AAI Partners: Ardin Software Oy,...

AAI Partners:Ardin Software Oy, VantaaACD Consulting, Helsinki

ICP-Tele, Espoo

Project Management Problems in Multi-VendorProjects outsourcing.

Project RIGHT, seminar at LUT, April 20, 2007

25-Apr-07 2 © Copyright AAI JV 2006AAI JV [email protected]

Contents

1. AAI vision and mission

2. Who, what ?

3. AAI Partners’networks 1-2

4. Skills/ References of AAI Resources (Arcadia,Lanit-Tercom, CSI)

5. Project management problems

6. Solutions to existing problems

7. Conclusions

8. AAI Partners Team: Contact Information

mailto:[email protected]


AAI vision and mission

Vision Statement

In years to come, AAI Partners will becomeleading expert in Finnish-Russian softwaredevelopment and consulting cooperation

Mission Statement

Assisting Finnish SW industry to reach its15/40(*) goal by being (*) see: www.swbusiness.fi


http://www.swbusiness.fi


Who, what ?

1. AAI Partners is a group of seasoned ICT and SW expert companies representingsupply and demand in Software development and business on both sides of Russian- Finnish border.

2. Through AAI Partners’extensive and reliable resources and contacts on both sidesof the border, we are ideal liaisons to assist Finnish companies, research centersand authorities in reaching their goals of growth and co-operation in SW sector.

3. We assist Finnish Software companies to use cost effective Russian SW resources to

1. find reliable Russian partners for Nearshore outsourcing activities.

2. enter to the Russian and CIS markets with their own solutions.

4. We also assist High quality Russian companies to offer their services to Finnish andEU market.

5. We are maximizing value for our customers by using multi-vendor strategy.



Why multi-source?

There are many advantages of multi-sourcing:

It leads to increased throughput due to vendor’sspecialization.

Ensures competitive pricing.

Reduces customer’s risk and provides access to a largerbase of resources.

Most large companies start with sourcing from a singlevendor and then graduate to multi-sourcing.



AAI Partners’network 1(2)

1. On Finnish side AAJ Partners consists of three Finnish Companies:

Ardin Software Oy, Vantaa - Managing Director: Arcady KhotinACD Consulting, Helsinki - Managing Director: Antti ÄkräsICP-Tele, Espoo - Managing Director: Pentti Paalu

2. On Russian side we have a consortium of more than 30 Russian softwarecompanies, which (based on their contacts and business interests toScandinavian SW market) is called Scandinavian Group (ScG).



AAI Partners’network 2(2)

1000+ employees in all ScG companies together

A spotless delivery record of 500+ projects by all companies

Technology partners with all leading software productcompanies

Consistent record of over 70% business coming from repeatcustomers

Together, we have mastered the challenges of operatingoffshore software development to deliver excellent qualitymanagement and support for our global customers



Skills our resources have

Arcadia is an innovative software consulting company based in St. Petersburg, Russia, with offices and clients across the world. Having started its

operations in 1993, Arcadia provides state-of-the-art custom software solutions and development services, proven by ISO 9001:2000 and Microsoft certification.

WonderLandRapidPRINTRealty

WAP NiteOwl+Media

MenuSystem

PoseidonWebGuerrillaSearch Engine

AOL Mail Poller,ManagementFramework ,SyncAgent

ICT

HR&Payroll

HR

POS SystemFinance

ZenithSpectrometerUnix eTranslationServer

Suite for Groove™NameRegistryHigh-tech

CorporateTraining

Education

WAPNiteOwl+RapidPRINTBanking

Oracle.NETC#GNU C++C++JavaScript

VBASP, WMLVC++Delphi




TransportationSystem

Logistics

DSP ProjectMedia

Radio Noise CancellerCompiler ConstructionSAMSONProject

Research &science

AADB ProjectQuant-E Switch, ATMSwitch Project

Code Generator,Streaming Video

Code Generator,Streaming Video,ReportingSystem

RescueWareICT

SecureGovernmentSwitch

Government& public

Surveillance Camera,FDDI/Ethernet Switch

SMS Alarm, DVBSatellite Router

Electronics &High-tech

TERCRYPT ProjectBanking

AssemblerUMLDelphiC/C++JAVAVBVC++

Lanit-Tercom is a leading Russian outsourcing provider of software development services. Lanit-Tercom has been workingin the international outsourcing market since 1991. We believe that expertise of the passion and talented software developers and systemengineers with the highly customizable transparent development process ensure top quality service and customer satisfaction.




DeliveryServiceSystem

DeliveryServiceSystem

Logistics &transportation

Mapping solutionBuilding &construction

YellowPages,WAPMobiledirectory

Onlinemapping

YellowPages

Onlinemapping

Travel andtourism

Delta GraphICT

PHPDelphiJAVAScript

OracleHTMLASPJAVAVisualC++

VisualBasic

CSI International Software Ltd started its business activity in 1997. As a handful of enthusiasts, computer engineers and cartographyspecialists they were among the first to develop interactive, topographical maps for internet use. By 1998 their work had been transformed into amore specific project: a cartographical server for Saint Petersburg. This server was to form the basis of several integrated business solutions.



Project work internally within AAI Group partners

1. AAI Group works with Finnish customer to develop RFQdocument.

2. RFQ tender process within AAI Group

1. RFQ is sent to ScG headquarters in St.Petersburg.

2. ScG companies submit their answers to tender materials.

3. ScG office discusses and selects top answers with AAIGroup and answers go to the customer in a singledocument offering several solutions.

3. Solution provider is being selected by the customer fromcandidate (s) provided by AAI Group and work starts…



Typical Vendor selection process (NeoIt)

Existing Supplier (s) Market Data

SupplierMarket

ScG

Short ListedSupplier

Pool(20)

Down-SelectedSupplier

(5)

PreferredSupplier

(2)

ContractedSupplier

PortfolioIdentification

Supplier PoolSelection

SupplierSWOTEvaluation

Cost-BenefitAnalysis

Negotiationsand Pricing

MasterServicesContractAgreement

Areas ofImprovement

EngagementPerformance

Labor Rates andCosts

MarketData

CoreCompetence

RFI Response Proposals Cost/PricingData

SignedAgreement



Project management problems 1 (7)

Increased overheads may wipe out savings.

Competition between vendors.

Differences in SDP methodology.

Knowledge transfer needs.

Differences in business culture.

Governance and tracking.




Increased overheads may wipe out customer’ssavings.

In multi-vendor sourcing AAI Group serves as amiddleman with its own management resourcesbut to bring real cost and flexibility benefits tothe customer one PM in AAI Group must workwith several vendors. We have developed ourown processes and handle it with ease.

AAI has invested a lot of efforts into supplierselection process and, over time, has managedto collect a lot of good data about suppliers.




Competition between vendors.

On one hand, it has positive side forcingvendors to offer better prices.

On the other hand, vendors are not much eagerto share with their internal skills, knowledgeand resources.

AAI invests a lot into engagement planning andthus solves this problem.




Differences in SDP methodology. Contracts structure.

All our vendors in ScG are matured software companieswith well-developed SDP.

Our customers have their own SDP.

AAI Group audits ScG companies’SDP and helps toorganize necessary trainings and knowledge transfer (ifneeded).

AAI has developed set of contract document templatesand uses it with ScG companies.




Knowledge transfer needs.

When project starts it is very important to paygreat attention to transition management,investing into kick-off, intermediate andpostmortem meetings.

To reach increased throughput through vendor’sspecialization special methods of knowledgetransfer between customers and vendors andwithing vendors must be develop andimplemented.




Differences in business culture.

AAI is trying hard to offer it’s customers thewidest selection of vendors and ScG consists of30+ companies, some of them are located in bigcities like St.Petersburg and Moscow, some arein Novosibirsk and some are in Ukraine andBelorussia.

Having ScG companies spread across CIS forcesAAI Group to invest additional resources intobusiness culture trainings.




Governance and Tracking

AAI works hard on tracking and control ofdeviation from scope, schedule and costs of allprojects it manages for ScG.

Detailed project management and governancestructure developed by AAI and ScG companieshelps to avoid pitfalls and idetifies problems atearly stages.



Conclusions

1. Cost benefits with AAI -vendor management

§ Savings up to 25-30% in total project's costs

§ No extra costs on office space, security, medicalinsurance and social payments

2. Resource benefits

§ Full flexibility, no need neither hire nor fire localemployees.

§ New and rare talents available from 5 million people inSt.Petersburg.

3. Marketing benefits

§ Time to present and new market is much less, customercan focus on his core needs.



AAI Partners’Office:

Ardin Software OyTeknobulevardi 3-5, 01530 Vantaa,tel: 09-2517 8326

Arcady Khotin, [email protected]: 050 404 8526

AAI Sales/Marketing and CustomerInterface:

Sales & Marketing:

Pentti Paalu, [email protected]: 050-1946

Business & Strategy Consulting:

Antti Äkräs, [email protected]: 040 595 4621

AAI Partners Team: Contact Information






Typical Vendor selection process (NeoIt)

Existing Supplier (s) Market Data

SupplierMarket

ScG

Short ListedSupplier

Pool(20)

Down-SelectedSupplier

(5)

PreferredSupplier

(2)

ContractedSupplier

PortfolioIdentification

Supplier PoolSelection

SupplierSWOTEvaluation

Cost-BenefitAnalysis

Negotiationsand Pricing

MasterServicesContractAgreement

Areas ofImprovement

EngagementPerformance

Labor Rates andCosts

MarketData

CoreCompetence

RFI Response Proposals Cost/PricingData

SignedAgreement


AAI Partners: Ardin Software Oy, Vantaa ACD Consulting ...€¦ · AAI Partners: Ardin Software Oy,...

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