Software Development Outsourcing - Total Cost Of Engagement Tce

Slides from SirionLabs' webinar 'Plugging Value Leakage in IT Outsourcing Engagements' featuring Forrester VP and Principal Analyst, Andrew Bartels. CIOs and their IT departments often struggle to achieve the full value in strategic IT Outsourcing engagements due to ineffective governance and lack of performance alignment between the enterprise and its suppliers. This webinar explains: - The growing importance of service providers to firms (both for IT and for business overall) - Why the traditional tools and technologies are not adequate to manage today’s complex supplier management challenges - How CIOs can take the lead in embracing specialized software tools to enable not just the IT organization but the entire enterprise to get the most value from their strategic services suppliers

A comparison of 3 different resource types for building a software product: internal, offshore, and nearshore

Tecnología Empresariales

Total Cost of Engagement Comparison January 2009

Assumptions Long term, 3+ developer contract considered Asian and in-house rates are estimates Fewer trips are required in nearshore model as cultural similarities and experience reduce understanding gaps Productivity is higher with Mexican team primarily due to time zone proximities and real time collaboration Extensive SaaS expertise may contribute to productivity gains as well. Scio Consulting International, LLC. All rights reserved. 2

Total Cost of Engagement Scio Consulting International, LLC. All rights reserved. 3

Rates for Developers Scio Consulting International, LLC. All rights reserved. 4

Overhead Scio Consulting International, LLC. All rights reserved. 5

Attrition Scio Consulting International, LLC. All rights reserved. 6

Calls and Trips Scio Consulting International, LLC. All rights reserved. 7

Productivity Scio Consulting International, LLC. All rights reserved. 8

Decision and Transition Models If rate differences are NOT the primary driver and productivity improvements and ease of engagement ARE the primary motivators then you should consider change. Ask yourself, how great is the pain? Gradual transitions where nearshore resources are increased while offshore resources are decreased generally work best. We have worked with several and proposals will vary with each scenario. Scio Consulting International, LLC. All rights reserved. 9

Scio Competitive Advantage SaaS / RIA/ Web 2.0 Focused Market and business model understanding Technical skills Ecosystem knowledge Product Focused Understand the product lifecycle and challenges Agile Development Methodologies Clearer communications and expectation management for quicker, better results Nearshore Model = easier, cheaper, smarter Same time zone > real-time collaboration > increased productivity > faster time to market & lower cost Saves time and money on projects through more efficient communications Perform your own TCE calculations here. 10

Clients 11 Scio Consulting International, LLC. All rights reserved. These are a few of our satisfied customers. We wouldlove the opportunity to work with you.

Scio Consulting International, LLC. All rights reserved. 12 Development Center: Morelia Population: 1 Million Capital of Michoacan State Government & college town 200 mi from Mexico City Time Zone: CST Altitude: 5,000 ft Founded 1541 Direct Flights Houston - 2h Los Angeles - 2.5h San Francisco - 4h Chicago - 4h Anywhere in the US within 6-7 hours

Scio Consulting International, LLC. All rights reserved. 13 Mexico vs. India

Scio Consulting International, LLC. All rights reserved. 14 Gartner’s Country Suitability Source: Gartner Study of Qualitative Indicators of Country Suitability

Scio Consulting International, LLC. All rights reserved. 15 Full Lifecycle IT Services From Ideas to Product

Scio Consulting International, LLC. All rights reserved. 16 Project Meetings Nice surroundings close by…

Jeremy BeckVP of Business Development 408.404-3897 x301jbeck@sciodev.com http://www.sciodev.com

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