The Value Algorithm for Maximising your Skills Mix

Overview 1
Catalyst 1
Summary 1
Methodology 2
Executive Summary 3
Offshoring is a journey 3
Tackling the mix of seniority is crucial 3
CMMI style approaches are more holistic than KPIs 3
Choose pricing models for the specific situation 4
Table of Contents 5
Table of Figures 6
Table of Tables 7
Introduction 8
Moving beyond price: the value algorithm 8
Aims of this report 10
Offshore Balance 11
Getting the best out of the offshore 'mix' 11
Managing offshore mix 12
Establish shared goals and collaborate 13
Mix of Seniority 14
Achieving an optimum resource mix 14
Tackling mix will pay the biggest dividend 15
Productivity 17
CMMI as a surrogate for productivity assurance 17
Industry standards 17
Productivity gains through CMMI 18
How to Pay 20
Get the right change from the pricing model 20
No shortage of commercial model options 21
Working the Value Algorithm 23
Challenge your commercial management 23
APPENDIX 24
Further reading 24
Ask the analyst 24
Orbys consulting 24
Disclaimer 24
List of Tables
Table 1: Notional resource mix 14
Table 2: Modest Offshore component and high senior role mix 16
Table 3: Greater proportion of offshore and more junior roles 16
Table 4: Productivity gain potential between CMMI level 1 and level 3 19
Table 5: Elapsed time to progress from CMMI level 1 to CMMI level 3 19
Table 6: List of potential pricing model options 21
Table 7: Pricing category pros and cons 22
List of Figures
Figure 1: The value algorithm 9
Figure 2: Vendor views of 'ideal' offshore delivery mix 12
Figure 3: Typical constraints to optimum outsourcing 15