IS organizations at the lower end of the CMM need years of effort and massive cultural change to achieve the level of process maturity present in a best-in-class outsourcer. Fortunately, IS organizations can take advantage of the knowledge and experience of the outsourcer to move them up the scale of maturity faster than is possible through other means. Outsourcing engagements offer IS organizations a number of powerful benefits.
Access to Best-in-Class Processes
A top outsourcer will have a separate team that manages its outsourcing processes.
This team is responsible for maintaining and continuously improving the processes of the organization using the experiences from all of its ongoing projects. As a result, the processes of the outsourcer evolve far faster than those of most IS organizations.
Since the livelihood of the outsourcer is based on its ability to provide its services at maximum efficiency, the outsourcer has considerable incentive to improve its process effectiveness.
Ability to Watch the Procedures in Action
Implementing an outsourcing project within the IS organization provides staff members with the ability to watch the new processes and tools in action. This enables side-by-side comparisons of existing IS processes against those used by the outsourcer. Any doubts or misgivings about the value of more efficient processes will be dispelled by this exercise.
Hands-on Training
Any large-scale outsourcer will have well-prepared training materials, skilled trainers, and training facilities to prepare its own staff for outsourcing assignments. These resources can be applied to training internal staff. IS staff members can supplement their learning by working alongside the outsourcer staff on an actual project.
A Means to Overcome Cultural Resistance
Often, the required cultural change is the most difficult obstacle to overcome. The current practices of the IS organization are heavily ingrained in its staff members, and they often strongly resist changes to the status quo. An interesting paradox is that this resistance vanishes if a staff member takes a new job in a new company.
The staff member expects to learn and assimilate new procedures as part of the job move. It is far easier to add staff members successfully to an existing process environme nt than it is to change the process environment of existing staff members.
Outsourcers take advantage of this phenomenon when staffing their outsourcing projects. By putting the process environment in place at the start of the outsourcing project and transitioning staff into the environment, the outsourcer avoids the resistance that occurs when IS organizations attempt to change. The same principle can be applied within the IS organization by allowing the outsourcer to set up the project environment and then transferring IS staff to new assignments within the project.
KEY COMPONENTS OF A SUCCESSFUL OUTSOURCER
Selecting an outsourcer to assist the IS organization in moving up the CMM is different from selecting an outsourcer strictly for assuming responsibility for a given function. The outsourcing project must be performed on site, and it requires an outsourcer with the experience and desire to share its methods. These requirements preclude offshore outsourcing organizations. Some outsourcers will consider their practices proprietary and will be unwilling to transfer knowledge to the IS
organization. The IS organization must find an outsourcer that is willing and able to provide its procedures and the required training. Since claiming expertise is easier than providing expertise, the IS organization must evaluate the claims of each outsourcer carefully for accuracy before selecting a vendor.
The list that follows provides information about the key components of the service offering of a successful outsourcer. IS organizations should consider these components in detail when evaluating outsourcers.
Project Management Experience
Large-scale project management experience is one of the most important characteristics of a successful outsourcer. If the outsourcer does not have a solid track record of achievement, all of the other components in this list are suspect. For example, the methodology of the outsourcer represents the codification of this knowledge. If the outsourcer has limited experience, how strong can the methodology be? While experience in managing ongoing outsourcing projects is crucial, experience in managing the implementation and transition into a new project is especially important when using outsourcing to move up the CMM.
Methodology
The methodology of the outsourcer documents its processes and methods. The methodology describes which processes are used, how those processes are implemented, how they are used during project operation, and how they are managed. It is the primary training and reference document for the project. IS
organizations should review the methodology in great detail. The methodology describes how the IS organization will operate if the project is successful. The evaluators must ensure that the methodology meets their long-term requirements and is sufficiently complete to serve as a meaningful training tool. The methodology must support the processes required to move up the CMM. It must also include the supporting metrics, quality reviews, and process improvement activities to ensure that the processes are used effectively.
Central Support Team
A central support team is needed to maintain the methodology and capture best practices from multiple projects. Such teams are a primary vehicle for building continuous improvements into the methodology. The team receives project metrics from each ongoing project and assists in conducting management reviews of project quality. The existence of a central support team is indicative of the commitment of the outsourcer to its practice and to the ideals expressed in the CMM.
Experienced Staff
While training courses are valuable, actual project experience is even more important. A successful outsourcer will have staff members who have worked on multiple outsourcing engagements. These staff members know how to implement the processes in the methodology in a variety of circumstances.
Training Materials
Examining the quality of the training materials of the outsourcer is another good method for determining its value in a process improvement effort. Lack of good-quality training materials indicates poor training on the part of the outsourcer and casts doubts on the experience of its staff. Good training materials will be highly tuned from use on multiple assignments and will provide a strong foundation for training IS staff members.
A MODEL FOR AN APPLICATION MANAGEMENT
METHODOLOGY
Highlights of the Keane application management methodology (AMM) are offered below as an example of a methodology that supports the environment and processes required to move up the CMM. The AMM is customized to fit the needs of individual organizations; however, the fundamentals remain the same.
Project Management Processes These processes manage ongoing project operations, personnel issues, and project performance to level of service agreement commitments. There are three major groups of processes in this category: project management, level of service management, and training.
Customer Assistance Processes. The customer assistance function ensures that user support is based on centralized and common practices. This approach enables
fast response to requests, management controls on workload, and a collection point for project performance metrics.
Project Operation Processes These processes include those needed to execute the tasks necessary to implement scheduled application maintenance and enhancement projects. They include processes for the estimation, prioritization, specification, and programming of project tasks.
Asset Management Processes Asset management processes ensure the integrity of client application assets and effective project management through release management and configuration management. Application assets include source code, load modules, documentation, test cases, and other application components.
Production Control Processes These processes ensure the quality of project deliverables and the integrity of the client’
s production environment. They include
processes for system testing, acceptance testing, production turnover, and project close.
Operational Improvement Processes These processes identify methods to improve project operations and implement continuous quality improvements. They embody the principles of continuous process improvement as defined by the CMM.
Metrics from all project tasks and from process operations are continuously monitored to identify opportunities for improvement.
Management Review Processes These processes sit above all phases of an outsourcing project. They define the methods used by project management, client management, and Keane management to audit and review the quality of project performance regularly.
IMPLEMENTING AN OUTSOURCING PROJECT
When an IS organization decides to pursue an application outsourcing project, there are many activities that must occur to prepare the environment for outsourcing.
Similarly, when a project is completed, there are activities to wind down operations and return the project to the IS organization. As a result, outsourcing projects are usually organized into four distinct phases.
Phase I: Planning and Definition
This is the initial phase of the application outsourcing engagement. This phase evaluates the existing environment to develop a complete inventory of project assets and determine the types of improvements necessary to set up the project. A level of service agreement is created to document the project performance commitments, and a transition plan is created to begin the assumption of project responsibilities.
Phase II: Transition In
This phase addresses the turnover of the project to the application management team. In some cases, Keane introduces its employees to the application environment, whereas, in other cases, Keane acquires client employees to form the application management team. During this phase, depending on the team makeup, members either focus on acquiring the business and technical knowledge necessary to support