1. Webinar Distributed Agile Becomes A Distinct Possibility Hansa Iyengar, Analyst Charles Green, Analyst November 11, 2013. Call in at 10:55 a.m. Eastern time @HansaIyengar@cgreen0

2. © 2013 Forrester Research, Inc. Reproduction Prohibited2 Agenda › IT’s role in the business is changing. › There is an increasing interest in Agile. › Enterprises are turning to vendors to support their agile experiments. › Preparing for the shift to distributed Agile › Recommendations

3. © 2013 Forrester Research, Inc. Reproduction Prohibited3 The IT to BT shift Supports the business Purchased by IT buyer “Inside-out” view of technology Embedded in business Influenced by business buyer “Outside-in” view of technology IT BT “I don’t have internal customers. I only have business colleagues. Together, we serve our customers.” — Head of sourcing, Leading retail company “At its core, I define BT as measuring your usage of technology with business metrics instead of technology metrics. It’s not the mean time between failure or server response times that matter....” — Forrester CEO

4. © 2013 Forrester Research, Inc. Reproduction Prohibited4 Customer expectations are evolving faster than IT or business can keep up — creating new opportunity Technology expectations 1990 Customer expectations Business expectations IT expectations 20002010 2020

5. © 2013 Forrester Research, Inc. Reproduction Prohibited5 The call of the hour is for SPEED... Faster development cycle Faster deployment cycle Faster testing cycle Faster go-to-market

6. © 2013 Forrester Research, Inc. Reproduction Prohibited6... which is causing increased interest in Agile development methodologies › Either as a way to improve existing IT processes... ›... or as a way to support new internal stakeholders (such as product development leadership) “We were jaded with our traditional waterfall approach using fixed contracts. Our business requirements are changing so rapidly, we needed an approach with far greater feedback loops.” (SVM professional in the utilities sector)

7. © 2013 Forrester Research, Inc. Reproduction Prohibited7 Base: 149 IT professionals from organizations that are planning to implement or have implemented Agile (multiple responses accepted); Source: Q3 2013 Global Agile Software Application Development Online Survey Organizations are applying Agile primarily in-house but also with partners Firms use SIs and consultants for coaching and advanced agile support on a selective resource basis. “Do you use systems integrators on your Agile projects?”

8. © 2013 Forrester Research, Inc. Reproduction Prohibited8 Base: 149 IT professionals from organizations that are planning to implement or have implemented Agile (percentages do not total 100 because of rounding); Source: Q3 2013 Global Agile Software Application Development Online Survey Growing opportunity for “distributed Agile” True colocation is reality for less than one-quarter of the respondents. “To what degree are your teams geographically distributed?”

9. © 2013 Forrester Research, Inc. Reproduction Prohibited9 Source: July 30, 2010, “Agile Systems Integrators: Plausible Or Paradoxical?” Forrester report Agile and third-party vendors are not natural bedfellows

10. © 2013 Forrester Research, Inc. Reproduction Prohibited10 Use of Agile varies significantly between service providers Source: September 4, 2012, “Rightsource Your Agile-Lean Ecosystem” Forrester report

11. © 2013 Forrester Research, Inc. Reproduction Prohibited11 Base: 149 IT professionals from organizations that are planning to implement or have implemented Agile (multiple responses accepted); Source: Q3 2013 Global Agile Software Application Development Online Survey Testing and development are the primary phases of the software development life cycle that companies outsource Development and testing are the hottest outsourced app services, but one-third of firms claim not to outsource at all! “Which part(s) of your development process do you outsource?”

12. © 2013 Forrester Research, Inc. Reproduction Prohibited12 Base: 67 IT professionals from organizations that are using SIs for Agile; Source: Q3 2013 Global Agile Software Application Development Online Survey Agile outsourcing is done on a time-and- materials basis; mature organizations use fixed-price sprints or fixed plus a variable bank Three in five adopt a T&M pricing model when outsourcing Agile. One in five use a fixed price on the entire project. A few adopt creative new approaches. “When you use SIs or external consultants, what payment method do you use?”

13. © 2013 Forrester Research, Inc. Reproduction Prohibited13 Base: 67 IT professionals from organizations that are using SIs for Agile (percentages may not total 100 because of rounding); Source: Q3 2013 Global Agile Software Application Development Online Survey Full Agile outsourcing is split between time-and-material and fixed-price sprints “How do companies approach quantifying work with SI’s when outsourcing?”

14. © 2013 Forrester Research, Inc. Reproduction Prohibited14 Preparing for the shift to distributed Agile

15. © 2013 Forrester Research, Inc. Reproduction Prohibited15 Client and vendor maturity greatly influence the outcome of agile engagements Source: upcoming Forrester report

16. © 2013 Forrester Research, Inc. Reproduction Prohibited16 Preparing for distributed Agile › Assess your own company’s Agile readiness. › Evaluate your company’s maturity around testing. › Be mindful that many providers will gravitate toward waterfall approaches. › Be aware of specialist providers.

17. © 2013 Forrester Research, Inc. Reproduction Prohibited17 Provider agile maturity varies significantly Low maturity providers that focus on process optimization and lack understanding of Agile Midmaturity providers that understand the concept and are in the midst of transitioning High maturity providers already utilize Agile extensively

18. © 2013 Forrester Research, Inc. Reproduction Prohibited18 Low maturity providers › Lack of variety in potential payment models › Rigid approach to colocation › Limited array of hybrid agile options for clients › No agile CoE › Relies on partners for agile training › Organizational culture is rigid, formal, and hierarchical. › Client relationship strongly based on contractual T&Cs › Formal change request needed for each adaptation

19. © 2013 Forrester Research, Inc. Reproduction Prohibited19 Midmaturity providers › Developing agile advisory and consulting › Agile engagement utilizes primarily T&M pricing models. › Agile training program is limited in scope. › Developing necessary infrastructure for distributed agile › Client relationships gradually moving away from being purely based on contractual T&Cs › Agile CoE in development

20. © 2013 Forrester Research, Inc. Reproduction Prohibited20 High maturity providers › Fully developed consulting offerings including agile assessment models for new engagements › Organizational culture is proactive, open, and transparent. › Strong track record of distributed agile engagements. › Formal agile training program is widespread throughout the company. › Client relationships based on trust and integrity, not just contractual T&Cs › Creative pricing models (e.g., fixed price per sprint) › Strong investments specifically around tools, communication, training, and agile CoEs

21. © 2013 Forrester Research, Inc. Reproduction Prohibited21 Example of provider making major agile investments › Birlasoft shows a very mature approach toward really creative and flexible pricing models that can be adapted based on client maturity. › Wipro has a highly mature agile readiness assessment framework to help identify the right combination of location, pricing and delivery cycles. › Cognizant has developed a hybrid agile framework called Daikibo to help scale large distributed agile engagements. › HCL has developed interesting metrics to assess each aspect of the project to ensure predictability across the engagement.

22. © 2013 Forrester Research, Inc. Reproduction Prohibited22 When looking for agile partners, ask yourself if they have the following characteristics › Dedicated agile training and certification at the core of investments › Invested in soft-skill training › Made investments in communications platforms › Have access to tools and frameworks to track and foster progress › Built agile centers of excellence (CoEs) to nurture best practices

23. © 2013 Forrester Research, Inc. Reproduction Prohibited23 Recommendations › Agile philosophy is more important than rigid adherence to agile processes. › Not everything is suitable for agile delivery. › Assess your own company’s Agile readiness. › Evaluate your company’s maturity around testing. › Be mindful that many providers will gravitate toward waterfall approaches.

24. © 2013 Forrester Research, Inc. Reproduction Prohibited24 Selected Forrester research › Upcoming (H2 2013), “Offshore Agile Comes Of Age” › October 28, 2013, “What Are Companies Doing To Scale Agile Development?” › September 9, 2013, “Agile Metrics That Matter” › January 15, 2013, “Consistent Performance In Agile Teams Must Include Testing” › September 4, 2012, “Rightsource Your Agile-Lean Ecosystem” › April 30, 2012, “Survey Results: How Agile Is Your Organization?” › April 27, 2012, “Embrace Holistic Change To Achieve Agile Results” › February 8, 2012, “Justify Agile With Shorter, Faster Development”

25. Thank you Hansa Iyengar +1 (0)617.613.8904 hiyengar@forrester.com Charles Green +49 (0)69.959.29852 cgreen@forrester.com