Agendas
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Incremental Outsourcing
A Managing IT Project Delivery
Strategic Outsourcing at Bharti Airtel Limited
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New Service Model – Incremental Outsourcing
Benefits of incremental Outsourcing
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Managing the shortage of specialized IT workers
Reduced time to market
The shift to 24x7 operations
Favorable cash flow profiles
Cost reduction in IT service chains
Making applications globally accessible
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Incremental Outsourcing – Cash Flow Enhancement
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Managing IT Outsourcing
Managing IT Outsourcing
Managing IT Outsourcing
Managing IT Outsourcing
Managing IT Outsourcing
Managing IT Outsourcing
Managing IT Outsourcing
A Portfolio Approach to Managing IT Projects
 Three IT Deficiencies
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Failure to assess the implementation risk of a project at the
time it is funded
Failure to consider the aggregate implementation risk of a
portfolio of projects
Failure to recognize that different projects require different
managerial approaches
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Projects Typically Fail
 Over budget
 Average cost overrun: 189%
 Delivered late
 Average schedule overrun: 222%
 Failed to meet expectations
 Average coverage: 61%
 Larger companies are even worse
[Standish Group, 2004]
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Source of Implementation Risk
 Project size
 Experience with the technology
 Requirements volatility
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Effect of Adding Rick Factors
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Risk Metric
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Managing the “Dip” during Project Implementation
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Risk and Return Distribution for a Portfolio of Projects
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Risk and Return Matrix Exercise
 Information Systems Implementation at Texas Tech
 System #1: Updating MS Office Suite
 System #2: Student Relationship Management (SRM)
software in Banner.
 System #3: RFID system for TTU procurement replacing
bar code system.
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Criteria for Selecting the Appropriate Methodology
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Clear user requirements
Familiarity with technology
Complexity of system
Reliability of system
Time schedule
Schedule visibility
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IT Portfolio Approach
 Highlights total implementation risk
 Enables rebalancing of portfolio to key priorities
 Ensure limited resources are linked to critical
company needs
 20 individual unites priorities may not be a good
portfolio
 Existing methods hide commutability (efficiency)
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IT Portfolio Approach
Comparison of Financial and Project Portfolios
Assets
Financial Portfolio
Project Portfolio
Various financial
Various project with
instruments with
distince characteirstics
distinct characteristics
Diversification
Employing multiple
financial instruments
can reduce risk
Many project variables scope, approach, vendor
project manager, etc. - can reduce risk
Goals
Income & capital gains Profitability growth
Asset Allocaiton Invest according to
investment goals
Invest according to
organizational intentions
Connection
Interdependency
Correlation
IT Portfolio Approach – Barriers
 Cut cross management control systems and reallocate
scarce resources differently
 Changing rules win-loose  to much pain
 Can force drastic shift resource allocation inside/out
 Not seen as providing enough value – we are OK
 Cost too much – Don’t understand it
 We choose not to look at IT in aggregate
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THE SYSTEMS DEVELOPMENT
LIFE CYCLE
Project Phases
 Planning (Why build the system? How should the team go
about building it?)
 Analysis (Who uses system, what will it do, where and when
will the system be used?)
 Design (How will the system work?)
 Implementation (System delivery)
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A simple process for making lunch
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Processes and Deliverables
Process
Planning
Analysis
Design
Implementation
Product
System Request
Feasibility Analysis
Workplan
System Proposal
System
Specification
New System and
Maintenance Plan
SYSTEM DEVELOPMENT
METHODOLOGIES
Waterfall Development Methodology
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Parallel Development Methodology
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Rapid Application Development
 Incorporate special techniques and tools:
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CASE tools
JAD sessions
Fourth generation/visualization programming languages
Code generators
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Three RAD Categories
 Phased development
 A series of versions developed sequentially
 Prototyping
 System prototyping
 Throw-away prototyping
 Design prototyping
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How Prototyping Works
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Throwaway Prototyping
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Agile Development: Extreme Programming (UML)
Planning
Analysis
Design
System
Implement
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