right-sourcing software qa and test to deliver business ... · –right sourcing a flexible blend...
TRANSCRIPT
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Right-sourcing Software QA
And Test To Deliver
Business Results
Declan Kavanagh
Insight Test Services
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Ireland’s largest & leading specialist software QA,
Test & Validation services provider
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Software QA & Test to deliver
business results.
Declan Kavanagh
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Provide participants with information
on:– A risk management approach to outsourcing
– Right sourcing a flexible blend of in source, near and far
shore
– Present approaches that can ensure success of a right-
sourcing project
– The importance of being clear on the objectives, being
ready and monitoring
– Selecting a supplier or setting up/managing an internal
operation
“The learning points can be applied to most IT
outsourcing projects”
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• Introduction
– Declan & Insight
• Right Sourcing
– Why right source?
– The challenges
– Introducing an approach
• Successful execution of strategy
– Are you ready to right-source?
– Is your supplier Ready ?
– A process
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• Managing a supplier
– HR considerations
– Service Level Agreements
– Contracts
• 3rd Party Assistance
– Services worth considering
• Conclusions
– Benefits
– Main messages
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Introduction
Declan Kavanagh“26 years in the business”
&
Insight Group
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• Education
– Telecoms & Electronics Eng, Accountancy, MBA
• Current roles
– MD Insight Test Services & Insight Software
– Chairman Softedge systems
• Past
– CEO Accuris (Telco Software)
– Practice Director DMR and FJ Services (Software &
solutions)
– Senior Manager Amdahl (Engineering & Quality-M/F)
– Engineering Manager Trio Tech (Semi conductor Test)
– Test & Engineering Manager Computer Automation
(Mini, Micro, ATE)
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Insight Test Services (Consulting, Managed Services, Training)
Insight Software (Test, Validation & QA management product)
Insight Consulting (Strategic software, process consulting)
Kingston Recruitment (Specialist technology placement)
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Insight work in.
Financial Services-Life Sciences-
Public Services & ICT sectors
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Right-Sourcing
“Dynamic Blend of on site, near and far shore”
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Analysis Design Development Test UAT Support
What and to what extent ?
Inputs Outputs
Control
•Task
•Activity
•Project
•Function
•Process
•People
•Systems
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In Source Near
Shore
Off/Far
Shore
Virtual Centre of Competence
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Strategic
Focus on Core CompetenceGet Outsider View
Standardisation
Sharpen Processes
Tactical
Once Off ProjectAccreditation/Certification
Particular Skills Set
Temporary Scheduling Issue
Specialist Equipment
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Outsource to Third Party Sub Contractor • Get a separate company to test software for you• By project
• Flexibility
Partner With Other Company• Partner with another company to test software for
or with your organisation (may utilise virtual teams)
Organisations Setting Up Centres (Offshoring)• In low cost location
• Owned and operated by parent organisation
• May utilise virtual teams to develop software
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Source: Cap Gemini Ernst & Young
Why companies engage in IT Outsourcing:
•To Realise Cost Savings
•Lack of IT Staff
•Lack of Expertise
•To Improve Efficiency
•Get Access to Broader Skills Base
•24 Hour Day
•Deliver a Better Service
•Focus on Core Business
Why companies engage in Outsourcing S/W Testing:
•All of the above
•Independent and Objective
•Expansion of Capability
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What are the Concerns:
• Security/Confidentiality
• Loss of Control/Visibility
• Choosing the Right Partner
• Reliance on Suppliers
Source: Cap Gemini Ernst & Young
What are the Concerns relating to Test:•Knowledge acquisition and maintenance
•Environment consistency
•Loss of Flexibility
•Transition Overhead
Regulatory Compliance (FDA, SOX, Basel, etc)
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Positive:
• Cost, Time and Defect reductions
• Service and operation integrated and
transparent
• Enhanced flexibility and responsiveness
to end client
• Reduced fixed cost
Caused by:
•Clarity on shared goals and objectives
•Controlled and well managed transition
•Buy in at all levels
•Readiness for out sourcing
•Clear roles and relationships
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Negative:
• Delivery and Quality un predictable
• Visibility of progress not accurate
• Management effort and overhead
• Rework and duplication
• Loss of flexibility, responsiveness, creativity
Caused by:
•Big bang and over the wall process
•Over focus on contract and SLA
•Poor training and transition
•In experience on both sides
•Cultural differences
•Poor Readiness
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Barriers
& Complexity
Coordination
& Visibility
Communication
& Co-operation
Introduces
Distance
Negatively
Impacts
Cause
Negatively
Impacts
Cause
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• Readiness– Process Maturity, Product stability, staff buy in and
expertise
• Relationship development formal and informal
• Management and operational information
• Clear objectives and plan with flexibility to respond to clients, suppliers and market
• Pragmatic service level agreements and management
• Win-Win staff, financials, etc
“Poor performance locally will not necessarily be
solved by having someone else do the job”
Internal or 3rd Party CSF’s
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Scheduling Reducing Cycle Times
Cost Control
Access to Skills Lack of Expertise
Improve Efficiency
Not core competence Objectivity/Independence
Improved Quality
Process/Methodology Tighter Control/Metrics
Finding Defects must be a core competency of supplier
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• In Source
• Out Source Near
• Out Source Far
Insight experience suggests that over the long
term a blend delivers the best long term value
and minimises risks, the blend adjusts with time
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Due Diligence Set Up Transition Ramp Ongoing Ops
Insource Near Shore Far Shore
Time
Insource
Full project
Management Interface
Near ShoreNew product/technology
Far Shore
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Right-Sourcing
Strategy
execution
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Strategy, Goals & Plan
Stable, Predictable, Delivery
History of control and perf.
Best Practice Process
Technology Complexity
Robust Operational systems
Staff awareness and buy in
Change management
process
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Previous experience
Assets & Resources
Local presence
Best Practice Fn & non Fn
Core Competence Demo
Flexible, Responsive &
Pragmatic
Infrastructure & Security
Partner Model
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Due Diligence Set Up Transition Ramp Ongoing Ops
Recommended
Insource
•Mutual due diligence more
effective.
•Delivery while
learning
•Better skills &
relationships
•Drives readiness
Option
Structured process
•Own or suppliers
•Evidence
•Deliverables
focused on process
•More time on
planning and
negotiation
•Cost
Options
To be avoided
•Focus on training
•Big Bang
•Over focus on a
methodology/process
•Over documentation
•No local presence
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Due Diligence
Service Delivery
Ramp
Transition
Set Up
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Strategy
Delivery
Execution
Mobilisation
Planning
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Management Release Control
Information Configuration
Control
Escalation Change
Control
Best Practice Defect Control
Certification Automation
Financial Communications
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Readiness
Level of development Test
Development methodology
Systems and Processes
Quality of Interfaces
Scope and Control
Partnership type
Win-win profit
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Supplier
Management
“A partner who relates well to you and your company and understands your business is
essential”
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• Transition V Hiring
• Those remaining (new roles &
Training)
• Employee Laws
• Skills maintenance
• Skills Development
• Selection
• Contracts (New or Old)
• Induction
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• Capacity (Normal and Peak)
• Competence (Tech,Process,Mgmt)
• Capability (Fn & Non Fn)
• Deliverables
• Key processes
• Information, Reports & Metrics
• Turn around, Cycle Time, schedules
• Entry/Exit Suspend, Criteria & Acceptance
• Effort estimates & Costs
• Named responsible individuals
• Continuous Improvement Goals
• Partnership Culture
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• Master Contract
• Contract Schedules
• Master Service Level Agreement
– Work Package SOW
– Work Package SLA
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3rd Party
Assistance
“Independent and objective”
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• Company assessment
– Readiness, Strategy & Plan
• Vendor Evaluation & Selection
– Compliance, Standards, Process
• Vendor Audit
– Prior or during contract
• Company & Supplier Training
– Best Practice
• UAT
– Supplier quality mgmt & UAT
Whether you right source Development,
Test or both
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Right-Sourcing
Conclusions and
Summary
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• Cost Benefits
– Reduced Overheads
– Economies of Scale
– Economies of centre of competence
– Software Licenses
• Risk mitigation (Blended)
– Structured & controlled process
– Additional Flexibility & Responsiveness
• Improved delivery performance
– Quality, Cycle Times, Information
• Leverage complementary
competencies
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• Dynamic right-sourcing blend
– Risk mitigation and confidence
building
• Permanent on site component
– Ownership, Relationship, Process
– In sourced project for rapid results
• Clarity on strategy and goals
– Strategic or Tactical, supplier
alignment
• Importance of Readiness
– Insourced project component