There are multiple reasons to outsource software development like cost reduction and the access to new talent pools. Once you’ve found a vendor, however, the obvious step would be to hire developers/QA only. But you see extra $ – including those of a PM – on your estimate. What’s the role of a project manager in custom software development & do you need one? Responsibilities of a Project Manager in software outsourcing projects In a nutshell, a PM is a person who works closely with a customer and the dev team to prioritize tasks, facilitate communication and ensure timely project delivery. The Project Management Institute Body of Knowledge (PMBOK) defines project management as “the application of knowledge, skills, tools and techniques to project activities and meet project requirements”. The process involves the initiation, planning, execution, monitoring, controlling and closing project activities. You don’t think project management is a proper profession? Here are some sobering stats for you. The average IT project runs over time and exceeds budget by 40% and 10%, respectively. Over 26% of developers name proper management as the key success factor behind a software project execution. A PM is the only link between you and your remote employees who often speak another language and have a different mindset. The responsibilities of a Project Manager in software projects include:
So, what does a PM do exactly?
Most software outsourcing companies offer three pricing models including Fixed Price (FP), Time & Material (TM) and Dedicated Development Team (DDT). These models require taking different approaches to project management. Fixed Price & Waterfall The Fixed Price model is suitable for small projects (up to 700 man-hours) like the development of a standard website or promotional mobile app. Before you embark on a FP project, you should prepare a software requirements specification (SRS) – a comprehensive document which describes the software’s projected feature set and use cases. The document often contains tables, charts and mockups. However, the average company does not have the necessary expertise, human resources and R&D facilities to conduct proper research and write a SRS on their own. Ways out? In most cases that do not deal with rocket science the doc can be replaced with a business proposal/technical vision which is prepared by your vendor. An experienced Business Analyst (together with the representatives of the dev team) dives into your domain and prepares a spec. Once you discuss the requirements with your vendor and sign a FP contract, your project is broken down in several iterations – and that’s where a PM steps in. Since FP projects require little to no involvement on your side, you only approve the work at the end of each iteration. It is your appointed Project Management who oversees the schedules and people. Project Managers distribute the hours outlined in a FP contract among the dev team taking into account their expertise, character traits, strengths and weaknesses. Time & Material and Dedicated Team (Agile)
Both the Dedicated Team and Time & Material pricing models require a more flexible approach to software project management, so Agile is the way to go. DDT and T&M are most suitable for long-term projects with an unclear or evolving scope (like building a mobile game with an original gameplay, designing a comprehensive customer loyalty solution or developing software for an IoT gadget). With T&M and DDT, you are free to monitor your team’s performance, add new tasks to the scope and reprioritize them if necessary. You’re also free to conduct weekly/daily meetings with the developers (via Skype or face-to-face meetings if you partner with a nearshore vendor) and even promote your corporate culture among the remote employees. Do you need a Project Manager in this case? If you take the Time & Material approach, you surely do. Since T&M projects are also broken down into iterations, you need a person to monitor deadline adherence, track the actual time spent on your project, oversee the dev budget and ensure effective communication. Sometimes US and EU companies hire a local Project Manager (a self-employed specialist with a technical background and strong communication skills who resides in your country and facilitates cooperation between your company and offsite developers) to make outsourcing work. Another option is to hire a Project Manager who is employed by your vendor. Then you should obviously meet the PM in person to make sure he’s capable of managing a team, possesses great communication skills and is generally nice to deal with. If you take the Dedicated Development Team approach, you can either employ a PM or trust project management tasks to an experienced team lead. The latter option, however, works for small projects only (up to 5 people on your team). Once you decide to add new members on board, you’ll need a PM anyway (everyone should do his own job, right?). The crucial role of a Project Manager in T&M and DDT software development projects is to avoid project overruns. How much does it cost to hire a Project Manager? The PM hourly rates depend on several factors, including the country you outsource software development to, the size of a company and a PM’s expertise. While US Project Managers’ rates range from $ 100 (Texas) to $ 200 per man-hour (the Bay Area), you can employ a skilled Eastern European PM for $ 35-50. So, what makes a good Project Manager?
0 Comments
Your comment will be posted after it is approved.
Leave a Reply. |
Archives
February 2018
Categories
|