The case in year 2001
A software development company in US conceptualized a product for resource management (CRM). The product was intended to be sold to Fortune500 companies in US for managing their vast internal resources. The Company had its own manpower for software development. But due to other project commitments did not want to tie up the resources needed for this project. They also wanted to lower the cost of development taking into account the recessionary trends prevailing. It is the case that the company outsourced the product development.
Background - Notetech Side
Notetech had already carried out a project for the client. This project was much acclaimed by the end users for its functional utility and high-end graphics. The internal quality assurance team had lauded the project for its high quality. The post implementation support needed for the product was also commendable. The post project assessment by the client had specifically appreciated the Notetech team of developers for the excellent teamwork. Above all, there was an appreciable reduction in the cost of development and Notetech had delivered the product on time.
The background - 2nd
Notetech put forward the proposal to the company of an offshore development center and to implement the project by the remote delivery and monitoring methodology.
The proposal - Notetech
- An exclusive team of professionals will be dedicated for the project.
- The team composition required a team leader, two developers, QA, graphic artist, documentation expert at Notetech in India.
- The work will be replicated daily on the development server. This will facilitate daily review by the client and know about the up to date progress.
- A project manager will be in charge of the project at the client’s facility in US.
The team at Notetech in India will work up to noon US time to have proper communication and coordination with the Project Manager of the client at client’s US facility.
- The hardware and software platform will be mimicked at Notetech to have the most reliable testing.
The prospected advantages for the client
- Notetech has a world-class development team which they could use as their own
- The Notetech team will act as an adjunct to the client’s facility.
- Considerably lower cost of development with high quality technical manpower.
- The development team will work at Notetech to synchronize to noon US time which ensure daily communication.
- Effective development of 24 hours utilizing the time zone advantage.
- The US client need no hiring of manpower and hence no overheads.
Building the team
Team structure for the project was
| Sl No. |
Position |
Location |
| 1 |
Project Manager |
Client |
| 2 |
Project Leader |
Notetech |
| 3 |
Lead developer team |
Client |
| 4 |
Software Developers |
Notetech |
| 5 |
Quality Assurance Team |
Notetech |
| 6 |
Graphics artist |
Notetech |
| 7 |
Acceptance testing |
Client |
Working methodology
The functions of the client and Notetech were laid down as under:
| Stage |
Client |
Notetech |
| Requirements document |
 |
|
| Analysis |
 |
|
| Design |
|
|
| Implementation |
|
|
| Testing |
|
|
| Deployment |
|
|
| Maintenance |
|
|
The requirements document was prepared by the client and handed over to Notetech for development. The design, implementation and testing were carried out by Notetech.
Achievements
The product won IBM Beacon award competing with a number of business applications from various countries.
Business Model - Operation Methodology
Client can propose any business model as per their convenience. Or clients have freedom to choose compatible business model from our preformatted business models.
Results
Cost Reduction
The financial benefits of offshore outsourcing have been appreciable - development, support and maintenance costs have been reduced considerably. The client found that Notetech’s management overhead is lower than that of many software companies they had outsourced projects. They felt that many software companies over manage contracts by imposing additional project managers and unnecessary experts, which increases the overall cost.
Quality
Notetech has been extremely successful in consistently delivering high-quality applications on time and within budget. The Notetech team of high quality developers led by the project management team and the lead developer team of the client were able to provide international standard to the product. The product could compete with a number of business applications from various countries to win the IBM Beacon award.
Smooth Business Relationship
The business relationship has always been easy and smooth. The relationship has demonstrated that the balance of trust and control can deliver significant financial and management rewards. The client was fully confident of the quality processes and overall approach by Notetech. The client admits that partnering with Notetech was an intelligent business decision it has taken.
Ongoing status of the relation in 2006
The client is still maintaining 3 developers and QA team for the upgradation for new versions (the new version of the product comes every year) & maintenance of the CRM Product. In short Notetech development facility now acts like an extended development centre of the client’s facility in USA.
Note: On account of the Non Disclosure of information agreement we have signed with our clients, elaborate product information cannot be fully mentioned in the case study. However on request, client reference and project details can be provided without contravention of the Non Disclosure Agreement after due verification of bonafides.
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