Welcome

To

Our Presentation

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Our group members are:-

Name ID

Meer Md Maksel BBA110204148

Md Tanvir Hossen BBA110204177

Tania Parvin BBA110204208

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Software Outsourcing

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Introduction:

Information technology has become one of the fastest growing, fastest

changing markets in the world. The demand to produce new or

specialized software for specialized markets business, government or

domestic use in ever increasing. For example, telecommunication,

industry, which was founded on electro-mechanical genius, now, places

more than 80% of the value of a switch in its software. In addition, the

demand for new telecommunication service primarily based on software

or supported or customized by software, Is increasing and growing more

vital.

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Cont……Outsourcing is a new term for an old practice and is not limited to the

information technology world; it means contracting out work. We define

software outsourcing as contracting out the development, planning

management, training, maintenance or operation of software service, skills,

products or applications.

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Cont….With outsourcing organizations aim to improve qualities of software

product and service speed delivery times, and reduce cost. This is

achieved through improving company focus gaining access to the

needed expertise, sharing risk and cost, and re-using products and

experience. Outsourcing has gone through many iterations and

inventions. Some outsourcing contracts have been partially or fully

reversed, citing an inability to execute strategy, lost transparency &

control, onerous contractual models, a lack of competition, recurring

costs, hidden costs, and so on

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Definition:

In business, outsourcing is the contracting out of a business process to a third-party

Software Outsourcing in broad terms is a transfer of some business functions or

components of business processes to an outside contractor. Software Outsourcing

means a performing of specific tasks, business functions or business processes by

outside organizations that usually fall out of the company's core competencies ,

however, but are crucial for the regular functioning of business.

Outsourcing is the procuring of services or products from an outside supplier or

manufacturer in order to cut costs. Software Outsourcing, is the contracting out of IT

service provision to one or more external organizations

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Issue in software outsourcing:

Outsourcing software application development raises some technical and

managerial issue which is different from the issues associated with pure in

home development. This causes enough concern in some organizations to

prevent them from taking full advantage of the opportunities and

advantage offered by outsourcing.

Insurance:

The outsourcer should have adequate public liability insurance against loss or

liability through injury or damage.

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Cont…. Control:

This covers control over the software engineering process and control

over the final product. Control over the software development process

is essential to maintaining control over the quality and other desirable

properties of the product. There is danger that by outsourcing a

product, and consequently surrendering some control over its

development, the outsourcer can no longer guarantee properties such

as security quality and confidentiality. Agreement and contract Terms

need to clearly address this issue, but additional assurance may be

required by the outsourcer that target for system properties, such as

safety are met.

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Cont…. Outsourcing vendors Managing and coordinating:

Many risks in software development are associated with the diversity of

the participants and activities within the software life-cycle. The impact

of outsourcing on these risks can be variable. The issues here are :

To ensure the availability and capacity of the vendor to carry out

the collaborative development acts the critical times in the overall

project plan;

To plan, dependencies in the project plan;

To monitor the states of the project, and all the outsourced

components, so the adjustment to the project plan can be made

or, if needed, corrective action can be taken.

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Cont…. Trust and Assurance:

Projects may be requiring trusted components; projects may

require a security or a safety related component. If such a

component is outsourcing then the outsourcer may wish to seek

assurance that the component meets its safety or security

requirement. The problem for the outsourcing is to obtain

assurance that the outsourced component meets the required

level of trustworthiness

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Cont…. Flexibility in the Work Environment:

The teams working on your project need training and preparation,

regardless of whether they're working at your onshore facility or for the

offshore vendor. Many onshore teams have misperceptions about

outsourcing and those concerns must be addressed very early in the

project. You must thoroughly prepare your personnel for the changes that

lie ahead in their work environment and ease their fears.

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Cont…. Analysis Cost-benefit:

Offshore software development can save your company, significant costs,

but probably not right away. Expect that it will take some time to fully

realize the potential cost savings of outsourcing. Also, be aware of the costs

that lie hidden in the evaluation and selection of a vendor, the transfer of

your project overseas, your employees' transition to a new way of working,

potential layoffs of onshore employees, and the time spent managing the

project and communicating with the offshore team.

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Cont….

Intellectual Property Rights:

Make sure that outsourcing doesn't make your business lose its

invaluable proprietary and confidential business information. Insist that

your trade secrets be bound by full confidentiality and shielded from

misuses and abuse.

Roles and Responsibilities:

Clearly define the roles and responsibilities of the onshore and offshore

teams before the work begins. Both your business and the offshore

vendor must have clear policies and procedures for daily work, and

clear guidelines about how that work will be evaluated.

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Cont…. System access and security

Access to the purchaser systems by the outsourcer needs to be considered in the context of

current New Zealand privacy legislation, which is intended to protect personal information

about identifiable individuals. An outsourcer may only require system access at certain levels

to enable them to perform their service

Goals:

Goals direct the efforts to specific deliverables. For example, a business, which launch’s its

Internet site may want to provide all of its offerings through the website. However, this

particular phase of the project may have specific goals, such as streamlining the sales

process using Internet technologies and facilitating order placement by the customers. Such

goals help narrow down the thinking of the developers to see the specific solutions in the

global context and fit them into the project at the proper stages. In future the same system

can be expanded and integrated with the other business processes

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Cont…. Software licenses:

Where third party supply software used to provide outsourced services,

the appropriate licenses must be obtained. Any licenses currently held

by the purchaser that relate to services being provided may need to

be extended to cover the activities of the outsourcer.

Major Features:

Major features help people further redefine the scope of a project and

open lines of communication to enhance understanding between the

client and the vendor. For example, a web project for a retail store may

have several features such as admin module, inventory module,

storefront and backend database

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Impact Of Software Outsourcing

We can identify at least the following areas which will be influenced

by outsourcing:

Project planning;

Ongoing project management;

Configuration management;

Verification and Management;

Risk management;

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Cont….

These key activities have been summarized in The issue which

influence project planning are:

The need to evaluate, chose and negotiate with potential

outsourcing vendors:

The need to schedule, monitor and integrate outsource tasks;

The nature of the outsourcing relationship;

The need to plan and budget for joint software engineering

activities, for example: joint configuration management,

validation and verification or team risk management.

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Cont….In order for the customer to exercise a level of control over

the development of the outsourced components, then

bonding, monitoring and benchmarking need to be

continually practiced. Bonding in the context of project

management, refers to efforts of:

Establish the relationship with the outsourcing vendors;

Defining the communication and control channel;

Structuring the internal personnel to oversee the outsourcing work;

Making the ongoing adjustment in the outsourcing relationship;

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Cont….

Monitoring efforts, in the context of ongoing project management are

directed toward verifying the process controls and ensuring standard

practices across the board. In practice this could mean ensuring:

Complains to standard;

That verification and validation processes for the outsourcing

component meet the project standard;

That proper configuration management process is being followed;

That there is sufficient progress against the overall project plan;

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Cont….

From the project management system perspective proper configuration

management allows the current status of the component to be

determined and used to coordinate the project planning and

implementation activities:

Baseline for items which need to be shared between outsourcing and

outsourcing vendor;

Proper channel of communication;

Proper line of authority for change control;

Change impact and propagation procedures;

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Cont….

Another area where the outsourcing desertion has an impact is

in the area of verification and validation. In the case of

outsourcing a system component the outsource need and this

could mean taking into account such nonfunctional factors as:

System performance

System usability

System safety or reliability

System security

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Cont….

Outsourcing involves business risk and project management, risk,

some of the business risk includes the following:

Establishing and maintaining the relationship required for successful

outsourcing can be complex and resource intensive;

Losing control over key aspects of the system can cause the

outsourcing to become strategically dependent on the

outsourcing vendor.

Changing requirements and environment which may impact on

the cost, delivery time, and quality of work.

The risk associated with integrating potentiality diver’s technologies

into a working overall system

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Conclusion:

White collar jobs ranging from call centers to software engineers to

medical technicians are being "outsourced" to India resulting in

comments from the White House and the presidential candidates in the

USA. This "outsourcing" is blurring the lines in the globalization debate as

well. When globalization mainly meant that blue-collar jobs were going

overseas, it was ok with many American professionals who supported

Globalization. Opponents of globalization, on the other hand, argued

that only the bad, dangerous jobs were being sent overseas...setting up

a kind of sweatshop slavery.

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Cont….

Outsourcing has been alone new opportunities an challenge. Through

outsourcing organizations aim to focus on core business, improve

qualities of software products and services, speed delivery time, and

reduce costs. This is achieved through improving company focus, gaining

access to the needed expertise and technology, improving process.

Sharing risk and cost, and reusing products and experience.

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Cont….Outsourcing, however, bring along key technical and management issues

that need to be addressed and resolved. Further work is still needed to

resolve issues such as paradigms, boundaries, specification, design;

interfaces, risk management, measurements, and outsourcing project

management. Organizations need to adapt their process model to

accommodate the outsourcing decision process more complex. It is

important to assess the organizations situated and drivers to outsourcing

and address the issues and risk before taking the decision.

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