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Webinar Scaling Agile Development: How Do You Source Services And From Whom?

Webinar Scaling Agile Development: How Do You Source Services And From Whom?. Wolfgang Benkel, Principal Analyst Diego Lo Giudice, Vice President, Principal Analyst. February 18, 2015. Call in at 10:25 a.m. Eastern time. Agenda. Market trends on Agile at scale Your Agile sourcing strategy

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Webinar Scaling Agile Development: How Do You Source Services And From Whom?

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  1. WebinarScaling Agile Development: How Do You Source Services And From Whom? Wolfgang Benkel, Principal Analyst Diego Lo Giudice, Vice President, Principal Analyst February 18, 2015. Call in at 10:25 a.m. Eastern time

  2. Agenda • Market trends on Agile at scale • Your Agile sourcing strategy • Who are the service players, and how do you select them?

  3. Market trends on Agile at scale Agile is doing well, but scaling is hard . . .

  4. Agile development is increasing in popularity Agile is now an accepted and growing development method. Agile is more successful when based on trusted and long-standing relationships. Scrum and hybrid Agile-Waterfall are in fashion. The Agile service experience is growing. Source: February 5, 2014, “How Can You Scale Your Agile Adoption?” Forrester report

  5. Most of those that do it expand (or scale)

  6. Agile methodologies are used by the majority of developers

  7. Agile upstream Agile downstream 32% 13% Do standup, burn-down/burn-up, and short iterations; product owner; and constant feedback Do upstream plus continuous integration, continuous delivery, and test-driven development Source: February 5, 2014, “How Can You Scale Your Agile Adoption?” Forrester report

  8. Scaling Agile is hard, but possible. 22% 21% 40% 17% Less than 25% Between 25% and 49% More than 75% of the organization Between 50% and 75% Base: 149 IT professionals from organizations that are planning to implement or have implemented Agile; Source: Forrester’s Q3 2013 Global Agile Software Application Development Online SurveyNote: Percentages do not total 100 because of rounding.

  9. We’ve clearly not done enough!

  10. The Agile modern application delivery cycle has red zones • Upstream: burn-down/burn-up and short iterations, product owner, and constant feedback SAFe Water-Scrum-Fall Enterprise Scrum Agile testing and TDD CI/CD Automation • Downstream: continuous integration, continuous delivery, and test-driven development Source: February 12, 2014, “Navigate The Modern Application Delivery Landscape” Forrester report

  11. DevOps needed to optimize and automate the delivery pipeline and throw walls down between dev-test-ops Application release management From business To delivery/ deployment Cloud provisioning Application deployment automation Agile all the way through Test environment Production environment Build Development Stage environment Package repository Source: Forrester adaptation of SVT for dummies

  12. Your Agile sourcing strategy Some key points to consider

  13. So if Agile is a trend with increasing adoption, how are clients sourcing it? The catalog of Agile services is rich in the upstream and now also growing in downstream. Agile is at the top of the clients’ BT agenda, and vendors are preparing to meet their needs. Agile will change the testing services market forever. Pricing models and contracts are still the biggest roadblocks in the broader Agile services market.

  14. Do some Agile transformation work first; you can’t source your behavioral change . . . Define your sourcing strategy. Decide when Agile is the right methodology. Evangelize Agile and Lean values throughout the organization. Assess your readiness and train your people.

  15. Different sourcing models will apply to your journey at different times

  16. Appoint great product owners, and keep the key roles in-house Appoint the best PO(s) from their business. Ensure that Scrum masters are great coaches — not project managers. Give architects a seat at the table. Facilitate collaboration with other roles.

  17. Be flexible about the scope, but plan ahead Commit teams to fixed “units of work.” Use the “cone of uncertainty” to prove that the scope must be flexible. Measure uncertainty in order to reduce it. Define the overall business objectives and goals. Define what to expect from sprint zero. Agree on the size and scope of the sprint backlog.

  18. The maturity of the Agile relationship influences the pricing model

  19. Other sourcing criteria for Agile services • For more, download our research on Forrester’s website. • “Developing Modern Applications With Agile Outsourcing: Part One” • “Developing Modern Applications With Agile Outsourcing: Part Two” Metrics and service-level agreements (SLAs) Continuous improvement Vendor governance Change management

  20. Who are the service players, and how do you select them? Where and who can you get for external help?

  21. Agile services market players overview Midtier technology service providers Small specialized players less than 100 • Advisory • Coaching • Training • Agile transformation (AT) strategy • Tasks outsourcing • People10 Technologies, agile42, and Emergn • Agile transformation • Catalyst IT services • System integrators • Large-scale delivery outsourcing plus other services • IBM, HP, Accenture, Atos, and Capgemini (plus see next slide) Consulting boutiques and pure players Large-scale service providers • Agile advisory, coaching, training, and AT strategy • Agile delivery co-outsourcing • Magenic, Pivotal Labs, ThoughtWorks, EPAM, and 3Pillar

  22. Agile services companies profiled for this research Pure players: Persistent Systems ThoughtWorks,CI&T,EPAM, andGlobalLogic Midtier technology service providers: Tech Mahindra, Luxoft, Virtusa, NIIT Technologies, Torry Harris Business Solutions, Birlasoft, and Mindtree.com Large-scale service providers:Cognizant, Tata Consultancy Services (TCS), HCL Technologies, Infosys, and Wipro Source: December 8, 2014, “Market Overview: Agile Development Service Providers” Forrester report

  23. Some vendors make more than 50% of their total revenue with Agile

  24. Vendors tailor capabilities and offerings to handle every type of client . . . . . . and are introducing DevOps Assessment frameworks Transformation frameworks Agile coaching Modern applications develop-test-deploy-maintain services Agile testing services Agile methods applied upstream and downstream

  25. Vendors deliver mainly Agile services for app dev and maintenance

  26. Vendors use a mix of de facto standard Agile methodologies

  27. Vendors invest in their Agile resources

  28. How to select? Review your sourcingstrategy: Why? What are the businessneeds: What? What type of services do you need: How? Assess where your are (beginner, mature, or scaling). Do you need coaching, advisory, training, delivery, testing, and DevOp?

  29. How to select? (cont.) Decide the right sourcingmodel: Who? Insource, co-source, andoutsource Complement large withsmalland pure with hybrid. Leverage a trusted relationship. Where? Onshore, nearshore, and offshore

  30. Wolfgang Benkel wbenkel@forrester.com Diego Lo Giudice dlogiudice@forrester.com Twitter: @dlogiudice

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