061211_scalable_operations.ppt
TRANSCRIPT
Scalable OperationsScalable Operations
Matt M PérezWed Nov 29, 2006
TechBA Silicon Valley PresentsTechBA Silicon Valley Presents
© nearsoft, inc.2
BackgroundBackground
Six startupsCo-founder of three: 0 to 100+
Nine years at Sun MicrosystemsGraphics and Multimedia: 16 to 160Solaris OS: 200+
Nearsoft, software development outsourcing
18 months
Plenty of mistakes along the way!
© nearsoft, inc.3
Software Outsourcing Is a Software Outsourcing Is a Great Place to Be!Great Place to Be!
© nearsoft, inc.4
Growth of IT Outsourcing: No End in Growth of IT Outsourcing: No End in Sight Sight
Computer Economics, 2006
Pervasive in US
Plans to increase8 major categories
10 industries
Source: Source: http://tinyurl.com/y9u94jhttp://tinyurl.com/y9u94j
© nearsoft, inc.5
Source: Source: Computer Economics, 2006
18%
21%
19%
32%
32%
30%
40%
30%
11%
10%
14%
12%
16%
22%
14%
26%
0% 20% 40% 60% 80%
Help Desk
Data Center Ops
Desktop Support
Network Operations
Disaster RecoveryServices
Hosted Apps (SaaS)
Website/Ecommerce
Software Development
Decreasing Same Increasing
Use and Growth of Use and Growth of OutsourcingOutsourcing
© nearsoft, inc.6
Most Often OutsourcedMost Often Outsourced
Software development
Website/Ecommerce
Hosted applications (SaaS)
Disaster recovery services
Over half of organizations surveyed
Source: Source: http://tinyurl.com/y9u94jhttp://tinyurl.com/y9u94j
© nearsoft, inc.7
Offshoring?Offshoring?
One-fifth (20%) of all organizationsGreenfield!
Increases as organization size increases
Source: Source: http://tinyurl.com/y9u94jhttp://tinyurl.com/y9u94j
© nearsoft, inc.8
Other TrendsOther Trends
MaturingWebsite/Ecommerce
Early stageHosted applications (SaaS)
Least popular, but growingDesktop supportData center operationsHelp desk outsourcing
Slowest growthData center outsourcing
Source: Source: http://tinyurl.com/y9u94jhttp://tinyurl.com/y9u94j
© nearsoft, inc.9
PollsPolls
© nearsoft, inc.10
Poll #1Poll #1
Does your company offer software development outsourcing?
© nearsoft, inc.11
Poll #2Poll #2
Has your company already done business in the US?
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Poll #3Poll #3
Does your company have at least one salesman on staff?
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Last PollLast Poll
Is your goal to increase your revenue?
© nearsoft, inc.14
Why Worry Why Worry about Scaling?about Scaling?
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Revenue Growth Requires Revenue Growth Requires ScalingScaling
If no, wrong webminar
If yes, you’ll have to learn to scale your business
© nearsoft, inc.16
Ways of ScalingWays of Scaling
Continue doing sameCapital
Cut back breadth of offeringReassign or replace
Focus on narrower nicheRetrain or replace
Chose scale strategy firstThen scale operations
© nearsoft, inc.17
ComponentsComponents
Capital
Recruiting
Culture
Infrastructure
Management, executive talent
© nearsoft, inc.18
CapitalCapital
Recruiting
Hiring
Training
Infrastructure
[Work goes here]
Invoice
Revenue
Angel, VC
Bank line of credit
Grandmother
© nearsoft, inc.19
Recruiting SourcesRecruiting Sources
CompetitionIntegradoras?
Universities
Other states, countries
Numbers gameRequires planning, process
Discipline, consistency
© nearsoft, inc.20
InterviewingInterviewing
Test areasPsychological fitTechnical expertiseReference, off-line checkBackground checkEnglish proficiency
Interview processAll-on-one? – Not scalable2+1 – Scalable
© nearsoft, inc.21
CultureCulture
Human ResourcesOrientationTraining, mentoringRegular communications
BlogsAll-hands meetingsBusiness stats
Performance reviewsRegular one-on-one meetingsQuarterlyMeasurable goals
© nearsoft, inc.22
InfrastructureInfrastructure
Furniture
Cubicles, offices
Meeting/quiet rooms
Test labs
Network
Telephone
Power
Servers
Security
Backups
SDLC tools
© nearsoft, inc.23
Management, Executive Management, Executive TalentTalent
Scaling starts at the topHire over-qualified managers
Delegate, delegate, delegate
Set goals, targets
Manage to metrics
© nearsoft, inc.24
Congratulations, Congratulations, You Made the You Made the
Sale!Sale!
© nearsoft, inc.25
Bids & QuotesBids & Quotes
Key to getting the job
Effective
Differentiable
Support your business goals
Feasible
© nearsoft, inc.26
Bids & QuotesBids & Quotes
Process?Turn around time?
Predictable?
Cost?Who does it?
Requirements gatheringTechnical reviewTime and cost estimatesProject Plan
© nearsoft, inc.27
Use Case #1Use Case #1
Complete, thorough spec
Well-defined internal processes
Experience outsourcing
© nearsoft, inc.28
Use Case #2Use Case #2
Fairly complete spec
Some internal processes
Outsourced in the past
© nearsoft, inc.29
Use Case #3Use Case #3
Has a “spec”
Has a few “processes”
Never outsourced, and knows it
© nearsoft, inc.30
Use Case #4Use Case #4
What’s a spec?
Can’t afford processes
Never outsourced, but it’s no problem
© nearsoft, inc.31
Use Case #5Use Case #5
Doesn’t believe in specs
Processes is for wimps
Contributed to OSS project
© nearsoft, inc.32
Qualify ProspectsQualify Prospects
Service all?Each requires different efforts, cost, experience, methodology, …
Specialize?Qualify, qualify, qualify
Ruthless filtering
© nearsoft, inc.33
Bids & QuoteBids & Quote
Designed for success
Accurate time estimatesFunction Point Counting
Use Case Counting
Repeatable, results-based
Built-in course corrections
© nearsoft, inc.34
Creating a Creating a Successful PilotSuccessful Pilot
© nearsoft, inc.35
Managing the Pilot Managing the Pilot (Project)(Project)
Must meet expectationsAt least!Exceed expectationsManage expectations
How?Special process?Extra attention?
Must doChange management!!!Regular communications
How many in pipeline?Numbers game
© nearsoft, inc.36
PipelinePipeline
Bid
Bid
Bid
Bid Bid
Bid
Bid
Bid
BidBid
Bid
Bid
Bid
Bid
Bid
Bid PilotPilot
Pilot
PilotOn-going
Relationship
© nearsoft, inc.37
On-goingRelationship
On-goingRelationship
On-goingRelationship
On-goingRelationship
Clogged PipelineClogged Pipeline
On-goingRelationship
On-goingRelationship
On-goingRelationship
Bid
Bid
Bid
Bid Bid
Bid
Bid
Bid
BidBid
Bid
Bid
Bid
Bid
Bid
Bid PilotPilot
Pilot
Pilot
© nearsoft, inc.38
Separate ProcessesSeparate Processes
Bid
Bid
Bid
Bid Bid
BidBid
Bid
BidBid
Bid
BidBid
Bid
Bid
Bid PilotPilot
Pilot
Pilot
On-goingRelationship
On-goingRelationship
On-goingRelationship
On-goingRelationship
On-goingRelationship
On-goingRelationship
On-goingRelationship
Recurring, bread and butter
business
New business
© nearsoft, inc.39
SDLC SDLC Management Management
ToolsTools
© nearsoft, inc.40
Key Performance Key Performance IndicatorsIndicators
Delivery milestonesHours
Quality
Leading IndicatorsBug report rate increasing
Bug fix rate decreasing
© nearsoft, inc.41
DashboardDashboard
Composite graphs
Drill down to individual, task
© nearsoft, inc.42
SummarySummary
Software development outsourcing is a good place to beService business are cheaper to create and growGrowth requires scale
Quotes, proposalsPilotsCustomer service
Top management talentScalable management tools$$$$$$$$$$$$$$
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