Nearshoring in Tunisia: Is it possible?

Nearshoring in Tunis

Six reservations reassessed

A lack of skilled IT staff and lower costs are only two of the reasons why many companies outsource their software development to a nearshoring partner. The choice often falls on Ukraine or Poland. There are still reservations about countries like Tunisia. Are these justified?

Many companies in Europe are now using nearshoring partners to outsource their software development or entire business processes due to the lack of skilled IT staff and high labour costs. The classic choice is Poland, Bulgaria or Ukraine. But locations such as Tunisia are also becoming increasingly important in this context. However, there are still reservations about non-European partners, which can easily be refuted, because nearshoring in Tunisia also offers many advantages.

Quality training and geographical proximity

Quality: In Tunisia, higher education is of high quality and absolutely comparable with Western European countries. 240,000 students graduate from higher education each year, of which 20,000 are engineers and scientists and 9,000 are information and communication technology graduates. Tunisia has more than 50 engineering schools that teach computer science, among other subjects. This guarantees high quality in the implementation of software projects.

Distance: Even though Tunisia is located on another continent, the time difference is a maximum of one hour in summer and a flight takes only a little more than two hours. Thus, in contrast to offshoring in countries like India, it is guaranteed that contact persons are available during European business hours to make arrangements or solve problems.

Multilingualism and stable infrastructure

Communication: Large parts of the Tunisian population speak fluent French, English is taught at school from grade 4 and there are certified as well as professional language institutions for the German language. In the technical professions, French and English can be assumed, and German and Italian are often added. The local distance can be bridged without problems thanks to digital means of communication, which have developed even further during the Corona pandemic. The good telecommunications infrastructure, in which Tunisia is a leader in the southern Mediterranean, also contributes to this.

Mentality: Without question, there are differences between the German and Tunisian mentality. However, companies like think tank Business Solutions now have decades of experience in implementing numerous projects with European partners. A German bridgehead consisting of product owners and IT consultants additionally guarantees that the cooperation with the customers runs smoothly.

Hands-on mentality and cost savings

Management: Managing a project is always challenging, especially when a hybrid, multinational team has to be managed. To ensure the smooth running of a project, an agile working model is a good choice, which has also become popular in Tunisia, especially in the development and implementation of software in companies like think tank. By having German colleagues manage the projects, it is ensured that the customer’s requirements are always in focus. The developers in Tunisia also have a “get the job done” mentality just like their colleagues in other countries and act in a goal-oriented manner.

The best of both worlds

Costs: Tunisia is also a very good alternative in terms of costs. The hourly rates for a Tunisian employee are attractive and competitive. Despite the good quality of the labour market, the average wage costs for a full-time employee, for example, are very low compared to Eastern European countries, making Tunis an attractive North African location for business process outsourcing. It should not be forgotten that with Tunisia we are in a politically stable area, whereas in the Eastern European area there have been tensions and uncertainties in recent times.

Overall, it can be said that Tunisia as a nearshoring partner is a good alternative to the classic Eastern European countries. In combination with a German bridgehead, which can act as a translator not only of culture but also of mentality if necessary, one is relying on the best of both worlds: Availability of skilled labour, cost savings and German know-how and quality.

Content:

Do you need a Blockchain?

Blockchain
Blockchain technology has the potential to profoundly change all areas of our society. As a construct of the concepts of the digital signature, proof of work or proof of stake and the consensus algorithm, it combines previously incompatible concepts:

Do you need a Blockchain?

  • Decentralisation,
  • security and
  • trust.

In order to get a better overview of the different areas of application, the categories to which most use cases can be assigned, regardless of the industry, are listed below:

Digital Identity Management: Many people have certainly come up with the idea of managing digital identities. Not least Facebook and Google, which are integrated as registration services in many online services. From the user’s point of view, this is both convenient and questionable, as it is not always obvious when which data is passed on to third parties and for what purpose. The decisive factor in this category is the purpose, namely the storage of personal data that can be validated and thus used for authentication for other services.

Market creation and digital currencies: This category refers to the creation of new markets. Usually, this is a blockchain-based market on which goods or services can be traded. All cryptocurrency applications are examples of this category. Initial Coin Offerings (ICOs) in which investor funds are collected in an initial funding phase are also examples of market development.

Origin and tokenisation: In tokenisation, a real object that represents an asset is converted into a digital asset. The value is transferred to tokens and uniquely assigned to an owner. The tracking mechanism can be used to prove the origin and ownership of an object at any time (provenance).

Meta-consensus: Meta-consensus is one of the fundamental paradigms of the blockchain, as all participants must agree on a “chain”. This use case category is about finding and reaching consensus on a specific issue without being able to manipulate the outcome of the election. Examples are parliamentary elections, referendums or the votes of shareholders or contracts between several parties.

Tracking. Tracking is about the transparent, permanent storage and traceability of information that is relevant for several organisations. A good example is use cases from supply chain management, as data on transport goods is necessary both for individual suppliers and for checking adherence to laws and guidelines (compliance).

IoT – Internet of Things: Machines that interact on the blockchain like we humans do in real life and exchange goods and services via a wallet are part of the IoT category. An example is the automatic payment of tolls or parking fees, which can be paid by the car, which has a unique ID. Smart contracts, which are executed automatically without external intervention, also belong to this category.

Intermediary trust: Due to the characteristics outlined at the beginning, the blockchain has the potential to reduce the participants in a value chain to those that are really necessary, i.e. only those that actually contribute to an increase in value. Services and goods can thus be offered much more cheaply. One example is the energy sector, where it is possible to directly connect producers and consumers thanks to the blockchain.

We don't need a Blockchain!

The use of a blockchain solution should be viewed critically if it involves the storage of large amounts of data, there are many write accesses and a real-time data set is necessary or only a few participants are involved.

Conclusion

The applications of blockchain are as diverse as our lives. Nevertheless, it is often difficult to judge when its use really makes sense. “If trust or robustness are not important, then there is nothing which a blockchain offers that can’t be done with a regular database.” Gideon Greenspan – Founder of Coin Science.

Quellen: Ulrich Gallersdörfer Masterthesis: Analysis of Use Cases of Blockchain Technology in Legal Transactions https://wwwmatthes.in.tum.de/pages/z0tgbukmqlbr/Master-s-Thesis-Ulrich-Gallersdoerfer, zuletzt geprüft am: 05.02.2020

Cathy Mulligan (April 2018) These 11 questions will help you decide if blockchain is right for your Business https://www.weforum.org/agenda/2018/04/questions-blockchain-toolkit-right-for-business, zuletzt geprüft am 05.02.2020

T. Koens & E. Poll 2018 What Blockchain Alternative Do You Need? http://tommykoens.com/wp-content/uploads/2018/09/blockchain-alternative.pdf, zuzletzt geprüft am: 05.02.2020

DHS model (~end 2017) Dylan Yaga Peter Mell Nik Roby Karen Scarfone Blockchain Technology Overview https://nvlpubs.nist.gov/nistpubs/ir/2018/NIST.IR.8202.pdf , zuletzt geprüft am: 05.02.2020  

Scaling frameworks Nexus, LeSS and SAFe

agile frameworks safe less nexus
Megatrends such as digitalisation, globalisation and flexibilisation are rapidly changing our working world today.

Tabular comparison

Megatrends such as digitalisation, globalisation and flexibilisation are rapidly changing our working world today. The expectations and demands of customers are adapting to digital possibilities at ever shorter intervals. New demands are also constantly being placed on products. Teams can be scattered all over the world and still work together excellently. Everything is becoming faster, more interactive and more agile – accordingly, product development cycles are also becoming shorter and shorter.

One method that meets these requirements – today on everyone’s lips – is Scrum. However! What do you do when the product is so large and comprehensive that many teams, different departments or even the whole organisation has to work together on it? The right scaling for efficient and satisfying collaboration provides orientation and support for the teams. But: how do you decide which scalable framework is best? Which framework can be used when the processes of Scrum for 3, 4, 5, … teams are too small? The search for the most optimal approach is a big challenge for many.

To give you a rough overview of the common scalable frameworks, I have summarised an overview that highlights the differences of each framework: Nexus (Framework for Scaling Scrum), LeSS (Large-Scaled Scrum) and SAFe (Scaled Agile Framework).

Nexus

The father of the Nexus framework, Ken Schwaber, describes it as an exoskeleton that connects three to nine Scrum teams to develop a product. It is a process framework based on the agile manifesto and Scrum.

Nexus captivates through its simplicity. Scrum is scaled in its roles, events and artefacts. It focuses on cross-team dependencies and integration issues that arise when scaling across multiple teams and emphasises transparency.

LeSS

LeSS aims to impress with its simplicity (more with less) and relies on clear principles. The teams under a product owner are responsible for the complete product development and bear a great responsibility, which also includes communication towards customers and the environment. If there are more than eight teams, the system is expanded to LeSS Huge in an additional scaling phase.

SAFe

SAFe is economically oriented and has the continuous improvement of value streams in mind. With its hierarchical structure, it looks beyond the team to the programme, solution and portfolio levels as well as the overall embedding in the organisation. Roles, methods and artefacts are clearly described and support the introduction to scaled agile working.   

Agile scaling frameworks Nexus, LeSS and SAFe × This comparison is intended to provide you with an orientation to make it easier for you to take the first steps regarding the decision in which direction you want to go – Nexus, LeSS or SAFe. The advantages, disadvantages and limitations of these frameworks have deliberately not been discussed here.

However, before you can choose one of the scaling frameworks, you need to think carefully about which one fits your company culture and values. Check what your goal is, what do you want to achieve? What is the environment like and which agile methods are already used in your company?

My recommendation is to take the elements that best fit your organisation from the known frameworks and adapt an agile scaling framework.

Sources:

SAFe – https://www.scaledagileframework.com

LeSS – https://less.works/de

THE NEXUS™ GUIDE – https://www.scrum.org/resources/nexus-guide

Agile Skalierungsframeworks: Safe, Less und Nexus im Vergleich – https://t3n.de/news/agile-skalierungsframeworks-safe-less-nexus-1150190/

Das beste agile Framework – 5 Large-Scale Ansätze im Überblick – https://www.mosaiic.com/agile_framework/