1. Global IT ShiftstoSpain

2. Founded in 2008 by the AEC (the Spanish association of consulting firms) AEC members represent over 80% of the total ITC turnover. Employ over 60% of the professionals in the sector. The organisation is backed by the Spanish government Value Shore aims to promote and simplify sourcing to Spain. We ensure companies have the information to shortlist prospective partners organising and funding site visits access to lawyers and contract specialists advising on the potential tax breaks independent quality control

3. Source: Vanson Bourne, OmniBoss Report February 2010

5. Talking points Recessionary pressure continues to dominate IT spending New ways of contracting emerge linked to sourcing maturity Firms seek common service essentials from globally configured sourcing deals Offshoring no longer just equals “India” but many European minds fixate on the Indian pure-plays Clients seek to reduce risk and investigate near-shore options closer to home

6. Agenda Why executives need global delivery strategies Firms move nearshore to solve offshore issues Spain emerges as a credible offshore destination

7. Europeans vote with their wallets Desire to increase applications and infrastructure outsourcing Watch for a surge in leveraging global service delivery

9. Agenda Why executives need global delivery strategies Firms move nearshore to solve offshore issues Spain emerges as a credible offshore destination

10. The changing offshore location dynamics Many countries are jumping on the offshore bandwagon as an economic development strategy But just because the Economics Minister says it’s an offshore location does not make it so Country assessments focus on government stability and infrastructure quality But not important issues like cultural affinity for offshore work and the scale and health of indigenous vendors

12. Lack of management

13. Weak IT processes/outsourcing process maturity (requirements gathering, change management, specification writing, testing/QA, SLAs, documentation)

14. Internal customers unprepared for the rigidity of the outsourcing relationship

15. Improper project selection

16. Unrealistic expectations

17. No recognition that vendors lack business knowledge Vendor stability Time zone differences Cultural and language differences Country infrastructure Management challenges Security Source: Forrester Research

18. European firms seek nearshore skills Some countries are more mature than others Mature nearshore delivery hubs in Eastern Europe Russia rich in software development expertise Spanish industry expertise Many European service providers focused on Poland Pure plays have gone further East What counts in deciding a nearshore location Country stability; infrastructure quality, cultural affinity and the quality of local labour count What about Spain?

19. Agenda Why executives need global delivery strategies Firms move nearshore to solve offshore issues Spain emerges as a credible offshore destination

20. Skills, scale and location underpin Spain’s appeal Large skilled IT labour pool Check out the ratios Industrialized software factories Check out how the rates compare Domain expertise Check out the large firms punching above their weight Potential to scale with Latin America Spain/Latin American delivery model offering skilled pool

21. IT salaries feed lower rates

22. Graduates feed a large local IT labour Pool

23. Which firms should consider a move to Spain Spain as an alternative to India Make an inventory of current applications Document current best practices Pilot applications with the right critical mass Invest in the business analyst function Spain as a source of complementary skills Specific functional process expertise Investigate the industry and IT service capabilities How can the model scale through Latin America

24. Spain as an alternative to India? Decision steps February 2009 “Complementing India With Nearshore Strategies: Spotlight On Spain”

25. Spain as a source of complementary skills? Do your internal preparation Make sure you have a transformation roadmap—how you will move Make sure you have sufficient sourcing deal governance Operational control of the nearshore service delivery model

26. Focus on the site visit and locality for success Site visits are an essential part of the sourcing process Meet them on Spanish soil Leverage the regional autonomy Offers negotiation levers on business tax rates Drive discounts on a deal with location rebates Seek out local support organizations For advice and back up Value shore team; Invest in Spain

27. If you remember nothing else Global delivery is used in most large outsourcing deals 1 European firms need nearshore options 2 Spain offers a credible nearshore destination 3

29. Includes

30. Executive Q&A

31. Regular features

32. Contract news

34. Final Questions, Comments, Discussion?