1. 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, 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 . . .

5. 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

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

7. Agile methodologies are used by the majority of developers

8. 32% 13% Agile upstream Agile downstream
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

9. 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 Q Global Agile Software Application Development Online Survey Note: Percentages do not total 100 because of rounding.

10. We’ve clearly not done enough!

11. 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

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

13. Your Agile sourcing strategy
Some key points to consider

14. 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.

15. 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.

16. Different sourcing models will apply to your journey at different times
Sample sourcing models
1) Partial outsourcing
2) Co-sourcing mixed model
3) Full outsourcing
Leadership
Client-led
Mostly client-led
Mostly vendor-led
Vendor-led
Benefits
Partial use of vendors’ best practices, standards, expertise, and experiences
Client-controlled flexibility
Higher business differentiation
Acquisition of talents
Client imposes his own best practices.
Cost reduction
Medium business differentiation
Client learns and acquires best practices from the vendor.
Cost reduction based on low-cost resources.
Use of vendors’ best practices.
Highest level of vendor accountability for Sprint outcome
Sourcing model
Staff augmentation
Output-driven
Capacity management
Mostly staff augmentation
Output/outcome
Vendor accountability
Low (whole project)
High (for output/outcome, e.g., testing)
Low
Medium
High for doing “things right”
Low for doing “right things”

17. 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.

18. 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.

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

20. Other sourcing criteria for Agile services
Metrics and service-level agreements (SLAs)
Continuous improvement
Vendor governance
Change management
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”

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

22. 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

23. Agile services companies profiled for this research
Pure players:
Persistent Systems ThoughtWorks, CI&T, EPAM, and GlobalLogic
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

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

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

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

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

28. Vendors invest in their Agile resources

29. How to select? Review your sourcing strategy: Why?
What are the business needs: 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?

30. How to select? (cont.) Decide the right sourcing model: Who?
Insource, co-source, and outsource
Complement large with small and pure with hybrid.
Leverage a trusted relationship.
Where? Onshore, nearshore, and offshore

31. Wolfgang Benkel
Diego Lo Giudice