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Introducing Offshore Concepts Executive Briefing. Nick Krym, 02-07-2006
Good Reasons for Going Offshore
‘ 06 Application and Service Expansion Feature Set 11 Feature Set 10 Feature Set 9 Feature Set 1 Feature Set 2 Feature Set 3 Feature Set 4 Feature Set 5 Feature Set 6 Feature Set 7 Feature Set 8 Q1 - Q2 Q2 - Q3 Q3 - Q4
Engineering Team: State of the Nation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Offshore Outsourcing: Major Risks ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Major risks specific to our team ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Major risks specific to our team, cont. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Personnel Issues ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Offshore Outsourcing: Partnership Drivers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Offshore Outsourcing: First Steps ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Vendor Selection: Main Factors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Vendor Selection: Other Factors & Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Top IT offshore resource producers: capacity $14,000.00 $19,000.00 $35,000.00 $11,000.00 $17,000.00 $9,500.00 $13,000.00 Salary “rumors” for IT professionals in ($US) 2005  N/A $7,200 78,000 $1,900 Ukraine 450,00 43,200 137,000 380,000 950,000 2,100,000 Total Number of college graduates in 2001 $7,500 $29,000 $7,400 $6,565 $8,952 $5,880 Average Cost of IT resources a year in 2001 N/A $2,000 Russia 23,000 $19,500 Ireland N/A $1,400 Mexico 290,000 $2,900 Philippines 200,000 $2,000 China 415,000 $2,400 India Estimated number of IT employees in 2001 Average Salary of college graduate ($US) in 2001 Country
Top IT offshore resource producers: risks Low Low Fair Fair Fair Challenging Poor to good Ukraine Moderate Low Fair Fair Moderate Challenging Poor to good Russia Poor to good Good Good Poor to good Poor to good Infrastructure Poor Poor Good Moderate Challenging Operating Environment Moderate Poor Moderate High Moderate Skills Availability Fair Good Good Good Poor Cultural Compatibility Good Good Good Good Poor English Skills Moderate Moderate Philippines High High Mexico High Moderate Ireland Moderate Moderate India Low Moderate China Cost Political Climate Country
Top IT offshore resource producers: outlook Med – High Med Med Med Low Low – Med Ukraine Med – High Med – High Med Low – Med Low – Med Low – High Russia Low – Med Med Med Med – High Low – Med Resource Turn Around Low Low Low High Med Local Presence Low – Med Low – Med Med Med – High Low – Med Account Management Med Low – Med Med – High Med – High Low – High Project Management Med – High Low Med Med – High Low – Med Access to Relevant Development Skills Med Philippines Low Mexico Low Ireland Med – High India Med – High  China General Fit as a Partner Country
Example of Salary rumors – Neusoft, Inc.
Some Thoughts on the Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Q & A ,[object Object],[object Object],[object Object]

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Introducing Offshore Concepts

  • 1. Introducing Offshore Concepts Executive Briefing. Nick Krym, 02-07-2006
  • 2. Good Reasons for Going Offshore
  • 3. ‘ 06 Application and Service Expansion Feature Set 11 Feature Set 10 Feature Set 9 Feature Set 1 Feature Set 2 Feature Set 3 Feature Set 4 Feature Set 5 Feature Set 6 Feature Set 7 Feature Set 8 Q1 - Q2 Q2 - Q3 Q3 - Q4
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13. Top IT offshore resource producers: capacity $14,000.00 $19,000.00 $35,000.00 $11,000.00 $17,000.00 $9,500.00 $13,000.00 Salary “rumors” for IT professionals in ($US) 2005 N/A $7,200 78,000 $1,900 Ukraine 450,00 43,200 137,000 380,000 950,000 2,100,000 Total Number of college graduates in 2001 $7,500 $29,000 $7,400 $6,565 $8,952 $5,880 Average Cost of IT resources a year in 2001 N/A $2,000 Russia 23,000 $19,500 Ireland N/A $1,400 Mexico 290,000 $2,900 Philippines 200,000 $2,000 China 415,000 $2,400 India Estimated number of IT employees in 2001 Average Salary of college graduate ($US) in 2001 Country
  • 14. Top IT offshore resource producers: risks Low Low Fair Fair Fair Challenging Poor to good Ukraine Moderate Low Fair Fair Moderate Challenging Poor to good Russia Poor to good Good Good Poor to good Poor to good Infrastructure Poor Poor Good Moderate Challenging Operating Environment Moderate Poor Moderate High Moderate Skills Availability Fair Good Good Good Poor Cultural Compatibility Good Good Good Good Poor English Skills Moderate Moderate Philippines High High Mexico High Moderate Ireland Moderate Moderate India Low Moderate China Cost Political Climate Country
  • 15. Top IT offshore resource producers: outlook Med – High Med Med Med Low Low – Med Ukraine Med – High Med – High Med Low – Med Low – Med Low – High Russia Low – Med Med Med Med – High Low – Med Resource Turn Around Low Low Low High Med Local Presence Low – Med Low – Med Med Med – High Low – Med Account Management Med Low – Med Med – High Med – High Low – High Project Management Med – High Low Med Med – High Low – Med Access to Relevant Development Skills Med Philippines Low Mexico Low Ireland Med – High India Med – High China General Fit as a Partner Country
  • 16. Example of Salary rumors – Neusoft, Inc.
  • 17.
  • 18.