larion customer engagement models

ENGAGEMENT MODELS

Fixed PriceTime and Materials (T&M)When to usePros and ConsODC vs. Staff Augmentation

Engagement Types Working Models

Collaboration in generalDay-to-day operations3 Working ModelsInformation Flow

5 RolesHands-on ExperienceResources Structure

Resources Offering

Engagement Types

Fixed Price vs. Time & Materials

Factor to compare Fixed Price

vs.

Time & Materials

Payment:

Size of project:

Scope / Requirements:

Flexibility:

Client’s participation:

Methodology:

hours spent * unit price

medium & large

evolving

unlimited

significant

Agile

fixed

small & medium

defined

zero or little

little

Waterfall or RUP

Engagement Types Working Models Resources Offering

Fixed price• Requirements are well defined

• Estimate and plan are accurate, no need for changes

• Buyer requires quick turnaround

• Suitable for small and medium projects like building a prototype, an MVP (minimum viable product)

• Not work well in case changes happen frequently

Time & Materials• Requirements are unclear, subject to

be changed quite often

• Estimate is just for reference

• In case of urgency of deadline or staff skills missing

• Suitable for medium to large projects

• Well adopted to changes driven product / project

When to use

Picking up the right one is very important for project success.

Engagement Types Working Models Resources Offering

Risks about costs and time: on service provider

Fixed Price: Pros and Cons

Pros

• Allocated budget

• A clear picture about outcome vs. budget (a defined scope and fixed budget)

Cons

• Zero flexibility

• Quality can be compromised within agreed scope, time and cost

• Closed deal

Easy to manage

Not require close supervision / involvement from buyer

Changes are rarely incorporated, or with an increase in costs / time

It’s sometimes hard to agree upon what is in scope, what is out of scope

Can cause critical misleading point when the buyer asks for additional functionality for free

Little or no communication may result in unsatisfactory deliverables

Engagement Types Working Models Resources Offering

T&M: Pros and Cons

Risks about costs and time: on buyer

Pros

• Flexibility (scope, time, cost)

• High quality and well-tested product, as

• Buyer can do whatever to accomplish the scope

Cons

• Exceed the planned budget, as

• Increased hands-on management

The service provider bills more than his spend

Scope evolving is not well managed Easy to add/remove functions to/from

the scope

Changes are rapidly taken into account

Scope / requirements definition

Project monitoring and controlling Buyer has full control on what he wants done

Higher buyer’s involvement -> higher satisfaction

Engagement Types Working Models Resources Offering

T&M in details

Both Offshore Development Center and Staff Augmentation share the same advantages:

Replace staff temporarily unavailable

Offload customers’ IT requests

Focus on core competencies

Meet peak-time demands

& Fulfill skill needs and gaps

Engagement Types Working Models Resources Offering

Offshore Development Center (ODC) Staff Augmentation

Model type Strategic engagement, Result centric Tactical engagement, Resource centric

Engagement length

Pricing model Dedicated team & resources T&M (with exact numbers of hours spent)

Engagement scope Programs / Projects Tasks / Components

Team size Medium & Large (ten to thousands staff) Small (Up to several staff)

Managed by? Outsourcing vendor Client (with high involvement to supervise)

Creation enabled?

Contract structure Complex, Large Simple, Small

Scalability & Flexibility

Ease of adoption

Working model Offshore / Nearshore (Onsite at some extent) Onsite

T&M in details

Engagement Types Working Models Resources Offering

Working Models

Collaboration in general

At any level of details: • 1 sentence business need, OR• 1 A4 page written document, OR• A professional requirement specification

Contact points

• Fluent in English• Strong communications skills• English-speaking oversea working experience• Studied abroad or have a Master Degree with high

English proficiency

Engagement Types Working Models Resources Offering

Day-to-day operations

We normally meet in clients’ mornings (US time), also in our mornings (clients’ evenings) at some extent

Topics: requirement clarification, technical solution, status update, general meetings, etc.

VOIP phones Video conference

Screen sharing Chat & Presence

Send the staff to work onsite(requirement analysis, deployment, support, etc.)

Clients also visit our office and work with the team

Meeting means Project Management tools

Engagement Types Working Models Resources Offering

Fixed Price Working Model

Engagement Types Working Models Resources Offering

Engagement Types Working Models Resources Offering

• Instalment #1• Instalment #2• …• Instalment #n

Your requirements

Our analysis

Your feedback

Our proposal

Approval

Your solution

ODC Working Model

Engagement Types Working Models Resources Offering

Onsite

Offshore

Requirements

High Level Design

Low Level Design

Staging

Implementation

Testing

Support

User Acceptance

Production

Engagement Types Working Models Resources Offering

Staff Augmentation Working Model

Engagement Types Working Models Resources Offering

RESOURCE

OFFBOARDING

• Internal review• Client review• Resource confirmation

• Knowledge transfer• Project appraisal• Customer satisfaction survey

• Activated client processes• Monthly performance review

RESOURCE

REQUIREMENTS

Complete profile

RESOURCE

FULFILLMENT

RESOURCE

ONBOARDING

Engagement Types Working Models Resources Offering

Information Flow

Engagement Types Working Models Resources Offering

Account Manager Delivery Manager

Client

Developers

Project Manager

Solution ArchitectBusiness Analyst Quality Controller

Project Team

Client side

LARION side

Engagement Types Working Models Resources Offering

Resources Offering

• Extensive project management knowledge: PMBOK, CMMI, Agile, Scrum, RUP

• Guarantee project success

• With domain / industry specific knowledge

• Organizational know how

• Strong communications skills

• Leadership to drive the team

• Strong cognitive ability

• Consultancy capability

Project Manager Solution Architect

• Expert in software architecture following: TOGAF, RUP, CMMI, Scrum

• Technical pedigree and excellence

• Specialist risk management (security, performance, scalability, etc.)

• Technical leadership

• Visualization & Formulization

• Consultancy capability

• Innovation

• Details oriented

• Lifelong learner

Engagement Types Working Models Resources Offering

Business Analyst

• Industry and domain expertise: BABOK, UML, CMMI, PMBOK, Software Testing

• Business process modeling

• Critical thinking and analytical skills

• Consultancy capability

• Interpersonal skills

• Details oriented

• Customer point of view

Developer

• Software Development knowledge: RUP, CMMI, Agile, Scrum

• Continous integration• Automated deployment• Fullstack capability• Strong development skills• Problem solving• Consultancy capability• Teamwork• Solution oriented• Adapt and adopt quickly

Quality Controller

• Testing life cycle following: ISTQB/CTFL – CTAL, CMMI, Agile, Scrum

• Non-functional vs. functional, Web vs. Mobile testing

• Automated testing experience

• Defect tracking systems

• Test analytics and report skills

• Consultancy capability

• Teamwork

• Details oriented

• Quality centric

Engagement Types Working Models Resources Offering

Requirement Development

& Process Modeling

Tools

Database DesignTools

Hands-on Experience

Engagement Types Working Models Resources Offering

Frameworks

Languages

Hands-on Experience

Engagement Types Working Models Resources Offering

Payment Gateway & Social APIs

Code Repositories,Continuous Integration

& Auto-Deployment

Tools

Hands-on Experience

Engagement Types Working Models Resources Offering

Testing Tools

Cloud &

E-commercePlatforms

Hands-on Experience

Engagement Types Working Models Resources Offering

Resources Structure

Engagement Types Working Models Resources Offering

Questions?

Thank you!

Call us for further information:

Address: Hall 5, Quang Trung Software City, Tan Chanh Hiep Ward, Dist. 12, Ho Chi Minh City, VietnamTelephone: (+848) 37 155 742 Email: info@elarion.com Website: www.elarion.com