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On 11-12 November 2008, Alexis Sukharev, Auriga Founder and President, attended the 6th Outsourcing User Forum 2008 in Bad-Homburg (Germany). Together with Siegfried Langer, System z Growth Manager of IBM, Mr. Sukharev presented a joint experience report, on setting up effective offshore outsourcing operations for software development, from both a customer’s and a supplier’s point of view.
The User Forum Outsourcing 2008 is organized by BITKOM, the German industry association for information technology and is the biggest annual conference in the German-speaking world. Its aim is to offer a common platform for users of outsourcing services and services providers, consultants and scientists, to enable knowledge transfer and sharing hands-on experience and best practices. The event attracted about 450 attendees, and over 80 speakers shared their outsourcing experience in the form of presentations, workshops, discussions and user reports.
The report of Mr. Sukharev and Mr. Langer, entitled “Gaining Maximum Value from High-Tech Outsourcing Partnership” was focused on best practices for establishing a successful software development engagement, and summarized the previous cooperation experience between Auriga and the IBM Development Laboratory in Boeblingen, Germany.
The cooperation case for the report was based on the Remote Engineering Center organized in 2005 for the Hardware Development Lab in Boeblingen. Remote Engineering Center is a proprietary model, offered by Auriga to its clients. This methodology is an evolution of the Offshore Development Center model, aiming to minimize the ODC-related risks by improving engagement flexibility. Under the REC model, the project management, product quality management, process definition, implementation, improvement and QA are all on Auriga side. As a result, the customer reduces the management overhead, while retaining access to Auriga organizational assets and resources.
The report offered practical advice on setting up offshore outsourcing operations. Both speakers emphasized the importance of following a thorough selection process when choosing a partner and defining a clear management approach for interaction, with unambiguous requirements and measurable deliveries.
When it comes to starting a business engagement, ability to establish effective communication between the parties is as important as technical expertise of the service supplier. As Mr. Langer stated, “The joint workshop approach in defining the detailed project plans and Auriga’s strong technical and project management capabilities were the foundations of this successful engagement”.
Dr. Mathias Weber, Head of BITKOM IT-Services and Knowledge Management Department and Organizer of the Forum, kindly shared his views on the prospects of the offshoring industry in the current economic climate.
“German market players have been expressing an increasing interest in the nearshoring services offered by companies of Central and Eastern European. Clients are pleased with the opportunity to choose from numerous suppliers from all over the world. Auriga and other providers of software services with R&D centers in the Russian Federation, enjoy an excellent reputation among German companies of the high-end sector. In our opinion, they have chances of winning a larger market share, with their excellent references and a growing presence on the German market. BITKOM membership gives Russian companies such as Auriga a starting point for building ties with customers. Given the bleak economic prospects of the next year, it is natural that German enterprises are taking a closer look at expanding their nearshoring activities”, said Mr. Weber.