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A CASE FOR
          SUSTAINABLE IT OUTSOURCING
                                                       A COMPILATION BY

                                                 CYGNET INFOTECH PVT LTD

                                                       AHMEDABAD, INDIA




This material has been exclusively prepared for marketing and promoting Cygnet Infotech‟s professional IT services. It has been prepared on
the basis of web research and internal company information. Care has been taken not to misrepresent any facts or exaggerate any claims.
However, we encourage you to verify any information based on which you want to take your decisions.


                                                                                                                                          i
CONTENTS




  1.   OUTSOURCING TO INDIA

  2.   PROS AND CONS OF IT OUTSOURCING

  3.   FIVE MYTHS OF IT OUTSOURCING

  4.   BENEFITS OF OFFSHORE SOFTWARE DEVELOPMENT

  5.   BENEFITS OF OFFSHORE SOFTWARE TESTING

  6.   BENEFITS OF OUTSOURCING IT SUPPORT

  7.   ADVANTAGES OF IT OUTSOURCING FOR ISV

  8.   HOW TO EVALUATE AN IT OUTSOURCING VENDOR

  9.   CHOOSING A MID-SIZED IT OUTSOURCING VENDOR

  10. AHMEDABAD – A RELIABLE IT OUTSOURCING DESTINATION

  11. INTRODUCING CYGNET INFOTECH

  12. THE CYGNET ADVANTAGE

  13. CONTACT US




                                                          ii
1. OUTSOURCING TO INDIA




Global clients look for the most viable and effective         Better human rights protection
IT outsourcing company in terms of cost, quality
                                                              As compared to countries such as Philippines and
and ease of implementation. Several countries offer
                                                              China, Indians enjoy a much-secured Government.
cost   effective   and    technically     advanced       IT
                                                              The human rights of Indians are not violated as
outsourcing services to global clients. It becomes
                                                              often as citizens of other countries. This promotes a
necessary for the global client to ensure that it
                                                              healthy living environment and a safer haven for
selects the best country to carry out offshoring
                                                              Indians to live in, thus making it a better option
because of the fierce competition amongst the
                                                              with respect to IT Outsourcing.
nations like India, China, Philippines and Ireland.

                                                              Tremendous growth opportunity
Extremely strong educational system

                                                              India sees an extremely positive growth chart when
It all boils down to the presence of skilled work
                                                              it comes to Information Technology, in general. The
force and subject matter experts in the country
                                                              country invests almost 10% of its funds in setting
where IT Outsourcing is provided. India definitely
                                                              up IT parks in metropolitan cities in order to
has an upper hand because of the strong
                                                              promote IT Outsourcing activities. This ensures
educational system that prevails in the country.
                                                              well-connected     roads,     24-hour          uninterrupted
Every year, thousands of IT professionals and
                                                              power supply and international airports in most
business    executives    graduate        from       world-
                                                              cities. Most Indian IT companies have well-
recognized institutes. Not only their technical
                                                              established,    comfortable       and     fully    equipped
knowledge     is   commendable,         but   also    their
                                                              development      centers     to   carry     out     their   IT
command over English takes them one step higher
                                                              Outsourcing activities.
than professional from China, Philippines etc., when
IT Outsourcing is concerned.                                  Excellent work culture

Robust Infrastructure & Experience                            Indians by nature are loyal and hardworking people
                                                              who give the best of their abilities when it comes to
India is considered to be a more matured state
                                                              their professional lives. Thus the quality of output is
when it comes to handling IT Outsourcing because
                                                              increased, and so is the added value that is
of its experience in this area. The fact that carrying
                                                              provided to the clients, in general. Innovation and
out successful IT Outsourcing comes from years of
                                                              out of the box thinking enables Indians to deliver
experience and needs a strong foundation in terms
                                                              technologically sound solutions that not only
of infrastructure and political stability cannot be
                                                              promotes business but also opens a gateway to
ignored. As compared to countries like China and
                                                              conduct     cost-effective    means       of      conducting
Ireland, India enjoys the benefit of being the nation
                                                              business and consequently achieve more end-user
with years of IT Outsourcing experience, and thus
                                                              satisfaction.
house to a stronger infrastructure and more
number of IT Outsourcing experts.




                                                                                                                          iii
2. PROS AND CONS OF IT OUTSOURCING




IT Outsourcing is no more an exclusive technical          providing “A heavy competition compels the
term used by IT giants; it has become the most            service providers to come up with more cost-
frequently spoken concept in the field of software        effective IT Outsourcing solutions, which in turn
development even by emerging small scale                  leads to depreciation in the quality of the output.
companies. IT Outsourcing is considered to be just        „Cheap‟ and „high quality‟ never go hand-in hand.”
about offshoring some non-core and IT services to
                                                          In a discussion with IT Outsourcing expert of a well-
developing nations. However it is not so, there is
                                                          established software firm in New Delhi, the threats
much more to IT Outsourcing than the basic
                                                          in carrying out this kind of business became
offshoring activity.
                                                          evident. “When recession hit, we were the first ones
On asking about the most important pro of IT              to be chucked out both from American and
Outsourcing to the CEO of a leading bank in               European Countries. This is proof enough of the
America, he said, “When offshoring of services are        insecurity   that    we face      in carrying out     IT
opted for, we do not have to worry about                  Outsourcing.” She continued, “IT Outsourcing may
maintaining a conducive infrastructure or recruiting      give us good economic progression, however the
specially skilled labor force to carry out the IT         instability needs to be looked out for. Such
activities. We, instead, concentrate on the business      occasion stress the importance of having a strong
needs.” On asking him about the con that affects          hold in the domestic areas.”
the concept of IT Outsourcing the most, he
                                                          From      the      perspective    of     employees    of
referred to the lack of job opportunities for the
                                                          organizations that provide IT Outsourcing services,
natives. “In an effort to minimize the cost involved
                                                          it is seen as a good opportunity to grow and
in carrying out the IT operations, we often tend to
                                                          enhance      the     domain      level   knowledge.   A
neglect the employment needs of the educated
                                                          Technology         Lead   of     one     such   software
citizens of our own country.”
                                                          establishment said, “When we work for abroad
From the perspective of service providers, IT             clients, we get to interact with them on a day-to-
Outsourcing is seen as the most revenue making            day basis. Onsite opportunities are available which
option. IT Consultant at leading Software Company         increases the exposure thus adding value to our
in Mumbai told, “IT Outsourcing is where we can           skillset, and of course enables us to make some
make the most money. As service providers, we             quick money too”, he added with a smile.
offer affordable and high quality labor without
                                                          In essence, when IT Outsourcing is concerned, it is
compromising the needs of end users.” However,
                                                          a win-win situation for the clients and the service
by providing IT Outsourcing services, he confirmed
                                                          providers. However economic stability plays a vital
the several challenges that lay in this type of service
                                                          role in the success of IT Outsourcing as a whole.




                                                                                                                 4
3. FIVE MYTHS OF IT OUTSOURCING

Despite the popularity of IT outsourcing, there are              Myth 3: It‟s about cheap labor
several misconceptions that surround its general
                                                                 More often than not, people associate the term
principle of working. Here are some myths:
                                                                 „cheap labor‟ to IT Outsourcing.
Myth 1: IT Outsourcing hampers productivity
                                                                 Fact: Quality, Innovation and Specialized skill force
There is a general belief that when a client opts for
                                                                 The foremost aim of IT Outsourcing is to find a
IT Outsourcing, the overall productivity of the
                                                                 modestly priced provider, who specializes in
concern may go down because of several barriers
                                                                 offering   high-quality   output,    has   predefined
in terms of culture, distance, communication and
                                                                 methodologies and shows innovation in the field of
time that exist.
                                                                 IT. Affordable labor is just a side benefit, not the
Fact: Productivity is increased with IT outsourcing              only deciding factor.

Excellent English skills and superior technical                  Myth 4: IT Outsourcing can be done with
knowledge possessed by the employees of IT                       everything
outsourcing companies ensure that the productivity
                                                                 This is really not possible. However, some global
sees an upsurge despite time and cultural barriers.
                                                                 clients and software companies try to make it
Also, most companies offering IT Outsourcing work
                                                                 happen.
as per their client‟s time zone thus ensuring
uninterrupted IT activities. In most cases, an onsite            Fact: Study, Analyze, Decide on IT Outsourcing
project   manager        is    appointed        by   the    IT   areas
Outsourcing        vendor     in   order   to    carry     out
coordination amongst the onsite client managers                  The software company needs to understand client
and offshore team members.                                       requirements thoroughly and perform feasibility
                                                                 study. If the business needs cannot be covered by
Myth 2: Global clients opt for IT Outsourcing to cut             offshoring the IT activities, then there is no point in
costs                                                            considering IT Outsourcing.

The costs of a company sure see a reduction when                 Myth 5: Job cuts, job cuts, job cuts!
offshoring of IT activities is done. This is not the
only reason for clients to opt for IT Outsourcing.               IT Outsourcing is seen as the main culprit behind
                                                                 several natives going jobless. However there are
Fact: Simplifying the way IT activities are carried out          several studies that show otherwise.

Often, clients look for technical experts to develop             Fact: Economic growth
a technical product or application, after the
requirements       are   frozen.    Recruiting       in-house    It‟s about gaining maximum output, with minimum
employees and training them is time-consuming                    input   for   the   country‟s    economy    when     IT
and needs specialized attention that the business                Outsourcing is done. Consequently a steady
people cannot spare.                                             economic growth is seen leading to more
                                                                 employment opportunities for the natives.



                                                                                                                         5
4. BENEFITS OF OFFSHORE SOFTWARE DEVELOPMENT

With people turning to computers to manage               and round the clock input. This enables the client to
everything from a store‟s inventory to personal          release the product quicker into the market and
bank details, the concept of software development        make a stronger impact as compared to its
has taken very strong roots all over the world. As       competitors.
far as companies in the developed nations are
                                                         Innovative     Ideas    –     Since    offshore    software
concerned, offshore software development is
                                                         development        utilizes     only      highly     skilled
preferred to carry out the IT activities over the in-
                                                         professionals, the client can benefit from their
house development system. Several advantages in
                                                         innovation and bright technological solutions in
terms of cost, time and quality drive the global
                                                         terms of Information Technology. An overall
clients    towards        offshoring   the    software
                                                         betterment of technical approach is guaranteed
development activities.
                                                         with offshore software development.
Essentially, the company can benefit in the
                                                         Extended Support – Most offshore software
following areas:
                                                         development companies offer an extended support
Technical Expertise – The presence of numerous           for around six months to one year after the
software companies that get into offshore software       completion of project. This enables effective
development provides the clients with a wide             maintenance      and    quick     bug     fixing   of   the
horizon to choose from. Specialization in specific       application thus enhancing the overall efficiency.
skillset and ability to excel in one area enables
                                                         Streamlined processes – The fact that most
delivery of perfectly engineered applications when
                                                         offshore software development companies have
offshore software development is selected.
                                                         well-defined processes and high-quality procedures
Cost Cutting – Recruiting specialized skillset from      for project management to see tasks to completion
the natives could turn out to be a costly affair for     enable a focused strategy to be implemented thus
the company involved. The investment in one in-          adding substantial value to the overall business
house employee is the same as an investment in           needs.
ten offshore software development employees, in
                                                         Miscellaneous areas – Because of the skilled labor
most cases.
                                                         involved in Offshore Software development, it also
Time      Savings     –    With    offshore   software   facilitates leverage in other areas such as Research
development to the rescue, the core companies            and Development, implementation of refined
need not spend time on hiring and training in-           methodologies and localization of solutions to
house employees for every technical need. Instead,       attract regional markets.
the time saved by opting for offshore software
                                                         Thus, an overall value add to the technical aspect
development can be used to enhance and enrich
                                                         of business is achieved when the IT activities are
the business ideas.
                                                         offshored. However, commitment and sincerity on
Quick Output - When a global client opts for             both ends is a must for a successful long-term
offshore software development, conceptualization         relationship to last.
of an idea is quicker because of the skilled labor



                                                                                                                   6
5. BENEFITS OF OFFSHORE SOFTWARE TESTING

In the field of Information Technology, Quality        Agile Testing – This form of testing accommodates
Assurance forms the most important aspect of any       frequently changing business needs and so the
technically sound software. However to ensure          number of releases is more, consequently the
delivery of a bug-free application it takes a lot of   number of times the test set needs to be run is
effort, time and labor. In order to gain maximum       increased. In this case, offshore software testing
advantage in these areas, and to ensure a high-        makes the whole testing activity much cheaper and
quality product, several global business mammoths      more robust.
prefer offshore software testing to in-house
                                                       Expert advice – Since experts in the field of offshore
software testing.
                                                       software testing handle the testing activities, they
The multifold benefits of offshoring the Quality       can come up with effective and alternative means
Assurance activities are as follows:                   of performing the Quality Assurance activities that
                                                       save costs and ensure an error-free product such
Round the clock testing – Most software companies
                                                       as automation testing. Such a specialized and
that offer offshore software testing have required
                                                       focused       attention    provides   customers       more
facilities to run round the clock testing activities
                                                       leverage in terms of technical concepts, innovative
such as a stable test environment, sample test data
                                                       ideas and cost-cutting mechanisms when offshore
and experienced testers as well as test analysts.
                                                       software testing is chosen.
Such long hours of testing and defect reporting
aids in quick fixing of the bugs, leading to a quick   Cost and Time Savings - The most obvious
release of the product into the market                 advantage is with respect to cost and time saving
                                                       achieved. By opting for offshore software testing,
Pre-defined methodologies – Being experts in the
                                                       the cost of carrying out the QA activities is
field of offshore software testing, most software
                                                       considerably reduced. Also, the customer does not
companies have pre-defined testing models and
                                                       need to worry about hiring and training in-house
defect tracking mechanisms. This guarantees 100%
                                                       testers       when   offshore    software     testing    is
test coverage and ultimately an error-free product.
                                                       considered.

Duplicate test environment – When offshore
                                                       Complete Test Coverage – Most companies
software testing is opted for, there is a duplicate
                                                       offering to perform offshore software testing will
test environment available that can be used to run
                                                       provide functional and non-functional testing such
sample tests, examine test data and test any new
                                                       as   stress     testing,   performance      testing     and
releases. It is also possible to experience how the
                                                       regression testing as a whole package. This ensures
live environment would function using the offshore
                                                       full test coverage from all aspects.
software testing environment. Also, creation of test
data and maintenance of the same is done by the        Apart from these, once offshore software testing is
offshore software testing team ensuring that the       chosen, the business analysts and employees of the
developers do not have to be concerned about           company can concentrate on the core business
them.                                                  activities.




                                                                                                                 7
6. BENEFITS OF OUTSOURCING IT SUPPORT




IT Support projects, more often than not, need             to provide higher customer gratification. Thus, with
technical experts to be available for 24x7 support         IT Support Outsourcing to the rescue, clients can
activities. Another demand with respect to IT              improvise upon core competencies and internal
Support project is the need of extremely capable           business structure.
and reliable technical engineers who can provide
                                                           Better control over operating costs - When IT
quick resolutions or workarounds to live issues. For
                                                           Support Outsourcing is opted for, the contract
such reasons and more, major IT giants and
                                                           between the client and the service provider usually
worldwide business clients consider IT Support
                                                           lasts for a year or more. This provides a better
Outsourcing.
                                                           control over the costs of running a project and
Some of the most common benefits that IT Support           enables the business to predict the expenditure of
Outsourcing brings to a client is as below:                managing a project over a long duration.

Subject Matter Experts - IT Support projects               Cost Saving and Time Saving - The responsibility of
demand the involvement of technical and highly             maintaining skilled labor force and the requisite
proficient professionals in the specific area of IT,       infrastructure to carry out the IT activities lie with
which is facilitated by IT Support Outsourcing             the IT Support Outsourcing vendor. Subsequently,
vendor. It is impossible for a client to hire technical    the client does not need to invest time or money in
experts in all the fields and thus offshoring such         hiring highly skilled employees or in setting up a
services is the best option.           The ability of IT   robust infrastructure.
Outsourcing vendors to provide quick resolutions
                                                           Globalization and Local market - Clients looking to
means increased system uptime and subsequently
                                                           secure local markets for their products can easily
increased customer satisfaction and retention.
                                                           use the assistance of an IT Support Outsourcing
Assured    quality   -   Service   level    agreements     vendor to capture the required market areas.
combined with the skilled labor force guarantees           Globalization is easily achieved with the aid of a
operation efficiency for a client when IT Support          global outsourcer.
Outsourcing is chosen. The included financial
                                                           Round the clock response - With IT Support
penalty of downtime assures uninterrupted and
                                                           Outsourcing, there is no fear of losing business due
high-quality services from the vendor providing IT
                                                           to unexpected issues or network problems. Since
Support activities. The end-user support provided is
                                                           the network engineers and technical engineers
improvised and services are delivered with accuracy
                                                           work round the clock to assure continuous service,
in lesser time in IT Support Outsourcing.
                                                           the overall benefit with respect to customer
Enhance     business     needs     -      Without   the    satisfaction and prevention of any kind of severe
responsibility of providing support to the ongoing         business damage is achieved.
projects, the business executives can concentrate
on core business needs and ways to revamp them




                                                                                                                8
7. ADVANTAGES OF IT OUTSOURCING FOR ISVS (INDEPENDENT SOFTWARE VENDORS)

The fierce competition in terms of technology,                    because       of    quicker    resolutions     and       lesser
product innovation and application development                    turnaround times during a malfunction of the
amongst        the     various       Independent      Software    application.
Vendors has led to the necessity of opting for IT
                                                                  Innovation and Credibility
Outsourcing          as     cost-effective      methods      of
developing products and applications. Some of the                 The IT Outsourcing enables the ISVs to have a
most important advantages of IT Outsourcing for                   resource pool of highly skilled IT professionals who
ISVs are as below:                                                do not only excel in delivering the expected output,
                                                                  but also prove to be a trusted source for innovation
Advanced Technological Accessibility
                                                                  and creativity. The new bright ideas from such
IT Outsourcing gives ISVs access to several                       professionals help the ISVs see what is beyond the
advanced third party technologies which otherwise                 normal and explore into new territories and
would remain an alien concept to them. Through                    concepts. Because of their qualification, experience
an      easy     accessibility        of     such     advanced    and expertise, the resources of IT Outsourcing
technologies, ISVs can explore and experiment with                Company are credible and reliable.
several different solutions and products thus giving
                                                                  Concentrate on core product needs
them a higher visibility and leverage in the digitally
competitive market.                                               With IT Outsourcing available to manage the IT
                                                                  activities,   the    ISVs‟    employees      are   free     to
Lesser time to market
                                                                  concentrate on the ultimate business objectives
The general marketing principle is - The first one to             including          product       innovation,         product
release a product ultimately makes a greater                      management and product marketing. This enables
impact. By choosing to do IT Outsourcing, ISVs                    them to stay ahead of their competitors and make
reduce the production time, thus reaching the                     advancements in the chosen product field instead
market earlier that their competitors who follow in-              of worrying about developing the product or
house development. The product roadmaps need                      testing its effectiveness.
not be maintained by ISVs, but can be given to the
                                                                  R&D support
IT Outsourcing company in order for them to
realize and act upon the time constraints.                        For every ISV, the Research and Development
                                                                  department is the most crucial one since it is where
Round the clock working hours
                                                                  the new ideas and concepts are experimented and
IT Outsourcing means, in most cases, twenty-four                  explored      to    understand     their     usability    and
hours     zone       coverage        during     the     product   feasibility. IT Outsourcing provides the perfect
development          life   cycle.    This    ensures     quick   platform for such activities at an affordable cost
development of product, foolproof testing cycles                  with experts overseeing results of such trials.
followed by immediate bug fixing activities. Thus
                                                                  Thus, IT Outsourcing facilitates increased profit
time saving is achieved from all angles. In case of
                                                                  margins and lesser time-to-market, giving leverage
opting for IT Outsourcing for supporting a live
                                                                  to such ISVs in the highly competitive market today.
product or application, business loss is minimized


                                                                                                                                9
8. HOW TO EVALUATE AN IT OUTSOURCING VENDOR




IT Outsourcing is perceived as the area that results        be available with the IT Outsourcing vendor. Also,
in maximum cost reduction for global clients                any miscellaneous systems such as switching
leading to an increase in the overall profit.               equipment, call routing software, automatic call
Consequently, global clients see it as a considerable       distributors    etc.,   if   necessitated    by   the   IT
challenge to choose an appropriate IT Outsourcing           Outsourcing, must be available within the campus
Vendor amongst the numerous companies offering              of IT Outsourcing vendor.
IT Outsourcing services. Several factors such as
                                                            Cost – IT Outsourcing is opted for by business in
quality of work, expertise level and reputation in the
                                                            order to save cost. So, it is essential that the chosen
field of IT Outsourcing govern a client‟s decision
                                                            IT Outsourcing vendor provides high quality
with    regards    to   considering   a    suitable    IT
                                                            services at an affordable cost.
Outsourcing vendor.

                                                            Innovation and Inventions – IT Outsourcing is not
In general, in order to evaluate an IT Outsourcing
                                                            just about offshoring a bunch of IT activities; it is
vendor, the customer must consider the below:
                                                            also an invitation to the offshore counterpart to
Infrastructure – If the service provider who is             come up with innovative ideas to benefit the
offering to provide IT Outsourcing services lacks           business. Coming up with cost-effective solutions,
the proper infrastructure, then it is a given that it       being able to show creativity in the field of IT
will not make a very good IT Outsourcing vendor.            Outsourcing and being able to provide an overall
Proper buildings, accessible office location and            value add to the client is very crucial. And above all,
comfortable       working     atmosphere     for      the   the   quality     of    output    while     providing   IT
employees are mandatory attributes that the IT              Outsourcing services must not be compromised.
Outsourcing vendor must possess.
                                                            The clients, more often than not, prefer to pay the
Subject Matter Experts – It is imperative to assure         campus of IT Outsourcing vendor a visit in order to
that the IT Outsourcing vendor holds the workforce          understand if they possess all the requisites in order
with required skillset to carry out the IT activities.      to carry out the IT Outsourcing operations with
Also, the presence of Subject Matter Experts in the         ease and expertise. In some cases, interviewing the
area where IT Outsourcing is to be done is a must.          employees of the service provider throws some
This could mean a banking domain expert, or a               light about their proficiency in the area of IT
health insurance domain expert; depending upon              Outsourcing. Going through the portfolio of the
for    which   domain    IT   Outsourcing    is    being    service provider and getting to know about its
considered.                                                 client base and their testimonies can help in the
                                                            overall evaluation of a suitable vendor to carry out
Resources – Resources such as computer systems,
                                                            the IT Outsourcing.
telephone lines and other hardware systems must




                                                                                                                    10
9. CHOOSING A MID-SIZED IT OUTSOURCING VENDOR: PROS AND CONS

The huge volume of service providers with                 Lack of experience
exceptional resources, rapid changes in the IT
                                                          Most mid-sized IT Outsourcing vendor would not
industry, and aggressive competition contribute to
                                                          have faced the day to day challenges involved in
a daunting process of hunting a suitable IT
                                                          handling a highly demanding and volatile project.
Outsourcing vendor for the clients. There are
                                                          More often than not, they have a very limited client
several mammoths in the IT industry that are
                                                          base and so their exposure is fairly restricted.
targets for IT Outsourcing for major global clients.
However, with several new software companies              Learnability and Adaptability
cropping up, the inclination towards choosing a
mid-sized IT Outsourcing vendor is increasing.            The lack of experience may as well work out in the
                                                          favor of clients since the IT professionals of such an
Below are some of the pros and cons in this               emerging software company would be open to
choosing a mid-sized IT Outsourcing vendor:               challenging ideas and new concepts. They would
                                                          be willing to experiment and be pretty flexible thus
Lack of Analysts reports
                                                          giving a leverage to the clients in terms of
When considering IT Outsourcing, one of the most          exploring new dimensions.
important factors is choosing an organization with
                                                          Infrastructure limitations
a good reputation. The IT industry is congested
with so many hi-profile companies, that the newly         It is a giver that a mid-sized IT Outsourcing vendor
emerging IT Outsourcing vendors do not find               would not have all the sophisticated hardware
themselves mentioned in any report to talk of their       equipment or the software technologies at hand. A
credibility. This necessitates the client to take extra   client needs to evaluate the vendor‟s hardware and
measures to understand the reliability of the IT          software capabilities prior to sealing a deal with
Outsourcing vendor in terms of cost, quality and          them in order to prevent any future hassles in
commitment to deadline.                                   terms of deliverables.

Eager to Please                                           Further Cost Reduction

It is obvious that when a mid-sized IT Outsourcing        A mid-sized IT Outsourcing vendor would be able
vendor is chosen, the client is presented with a          to provide services at a much cheaper rate than an
team of young professionals who are eager to              established vendor, because of the fact that they
please and work harder in order to establish a            are new entrants into the field and cannot afford to
strong foundation in the IT industry. A set of fresh      be costly. However, it is imperative to ensure that
eyes coming up with new and innovative ideas is a         the quality of output is not compromised,
sure shot boost to the client‟s productivity, and         whatsoever be the case.
ultimately, revenue.
                                                          Clients must weigh both pros and cons of selecting
                                                          a mid-sized outsourcing partner.




                                                                                                              11
10. AHMEDABAD: A RELIABLE IT OUTSOURCING DESTINATION




Most IT giants and core business mammoths are                  since the city has seen several software companies
seeking IT Outsourcing as a profitable and reliable            cropping up recently which have IT Outsourcing as
means to offshore the IT activities. The most                  the major service.
popular IT hubs such as Chennai and Bangalore
                                                               The presence of an International airport, well-
seem to be saturated, and thus Ahmedabad is
                                                               connected roads and steady electricity supply make
being considered as a city that has tremendous
                                                               Ahmedabad an apt destination for IT Outsourcing.
potential to be the next IT hub. Prior to indulging in
                                                               The Government seeing the immense opportunities
IT Outsourcing activities, the customers seek for the
                                                               in the field of IT Outsourcing has plans to construct
most     profitable   location   in    terms     of    cost,
                                                               IT park of about 1.5mn square feet just outside the
infrastructure and other resources. Ahmedabad
                                                               city of Ahmedabad. This kind of government
clearly stands out as one such location.
                                                               backing is an open invitation for international IT
The fact that Gujarat has more than sixty-five                 companies to do business with Ahmedabad
percent of people belonging to the age group                   companies. The cost of living in Ahmedabad is
below 35 is a sure boon to Ahmedabad. Also,                    lower as compared to other developed cities such
Ahmedabad is the house to some of the best                     as Pune, Bangalore and Delhi, thus lowering the
Universities in India, stressing on the presence of            cost of skilled labor and resilient infrastructure for IT
strong    educational     background        in   all    the    activities.
inhabitants of the city. In addition to this, the city of
                                                               Thus IT Outsourcing at Ahmedabad is seen as a
Ahmedabad has a sturdy infrastructure and its
                                                               cost-effective way of carrying out IT related
residents have definite upper hand in terms of the
                                                               business since it eliminates the cost for in-house
knowledge of English, as a language.
                                                               specialized skilled workforce and infrastructure.
Since IT Outsourcing is where most software                    Advanced technological solutions, groundbreaking
companies      make     money         and   profit,     the    analysis      mechanisms       and      award-winning
competition is on a steady rise in this area.                  innovations are used by the software companies in
Ahmedabad takes pride in being able to provide                 Ahmedabad as a strong leverage to attract global
such a healthy competitive atmosphere because of               clients with respect to IT Outsourcing.         So it is
the presence of several IT companies in the city of            justified to conclude that for organizations seeking
Ahmedabad. So, customers are presented with a                  offshoring partners to carry out IT Outsourcing,
broader scope of viable options in Ahmedabad                   Ahmedabad is the best bet as of today.




                                                                                                                     12
11. INTRODUCING CYGNET INFOTECH

Cygnet Infotech is a software services provider based out of Ahmedabad, Gujarat, India. It has been providing
outsourced software development, testing and maintenance services for more than 11 years. It has developed a
client base in over 20 countries including USA, UK, France, Ireland, Australia, Singapore, Sri Lanka, Germany,
Spain, Canada, and Mexico.




                                            Technology Expertise




                                                                                                            13
12. THE CYGNET ADVANTAGE

Cygnet is uniquely positioned to offer you a range of technology solutions for your business requirements. You
can count on us because of our following strengths.

We are Microsoft Specialists

Cygnet has a bias towards Microsoft technologies since they are most widely used across the world. They have
end user acceptance and are supported by one of the largest corporation in the world.

Cygnet has been a Microsoft Gold certified partner till last year when Microsoft introduced the various
competencies for its partners. We have achieved Gold competency in web development and Silver competency
in content management, data platform, mid-market solution provider, portals and collaboration, search and
software development.




We also have significant experience in application services, systems integration, migration, product engineering,
testing and validation, business process outsourcing and mobile application development.

Cygnet Microsoft Learning Solutions Center

Cygnet runs a certified Microsoft training center which attracts hundreds of students and professionals each
year who wish to develop their expertise in Microsoft technologies. The Microsoft Learning Solutions Center is
an effort to backward integrate for sourcing and growing talent in-house.

This is a one of a kind set up in the whole of Gujarat state where a software development company has its own
Microsoft Training Center. When you engage Cygnet, you have many advantages.

       Cygnet can always provide the best talent in Microsoft technologies because it has Microsoft certified
        trainers on its employee rolls
       Cygnet is able to attract the best Microsoft resources to work forour clients
       Cygnet can ramp up resources on short notice
       Cygnet has direct access to exclusive Microsoft training resources

                                                                                                               14
We have invested in Good Infrastructure

Cygnet's offshore development centers in Ahmedabad, India are equipped with world class infrastructure and
facilities




We are committed to Quality, Reliability and Security for Project Execution and Delivery

Cygnet is ISO 9001:2008 certified company: We have a defined quality policy which is embraced by employees
at all levels of the organization. A transparent SDLC (Software Development Life Cycle) guides the various
processes from estimation, planning, requirements analysis, design, coding, testing, release, deployment and
support. As a client you are always in tune with the current status of your project. We rigorously follow
international accepted coding standards and best practices for developing our solutions. As a client, you are
assured of high quality deliverables and an amicable process for making enhancements.

Cygnet is CMMi Level 3 certified: The CMMi (Capability Maturity Model Integration) level 3 assures you that we
are proactively engaged in improving our processes to provide better solutions and experience to our clients.
We understand that each client has unique business needs and we tailor our execution methodology to align
with the project requirements in a mature manner.

Cygnet is ISO 27000:2005 certified: At Cygnet, we take Information security and risk management very seriously.
We are focused on providing our clients with business continuity and a competitive edge by planning for and
investing in security policies and infrastructure to minimize the impact of information related threats and
vulnerabilities.




                                                                                                             15
We are located in Ahmedabad, India

According to a recent report by Gartner Inc, India is still the undisputed leader in offering offshore services. India
has scored higher in all the 10 evaluation parameters - language, government support, labor pool,
infrastructure, educational system, cost, political and economic environment, cultural compatibility, globalization
and legal maturity, and data and intellectual property security and privacy in comparison to other countries.

Although the top cities for outsourcing are Bangalore, Mumbai, Hyderabad and Delhi, they are getting
saturated in terms of infrastructure and are facing higher resource costs. However, there are a number of tier 2
cities such as Pune, Ahmedabad, Chennai, Kolkata and others which are growing into noteworthyIT hubs and
are offering more competitive outsourcing opportunities.

Ahmedabad is the commercial capital of Gujarat, which is one of the fastest growing states in India. The Vibrant
Gujarat Summit in Jan 2011 saw the signing of MoUs in various industry sectors to the tune of $243 billion.
Ahmedabad is fast becoming a destination of choice for outsourcing because of the following reasons

        Educational institutions of high standing (IIM-A, DAIICT, and others) which provide high quality English
         speaking resources
        World class infrastructure in terms of uninterrupted power supply, international airport, high quality
         roads, and government support
        Cheaper cost structures (almost 30-40% lower) compared to tier 1 IT hubs like Bangalore

Cygnet has been servicing clients across the globe for more than a decade from Ahmedabad and we would
love to work with you.




                                                                                                                    16
CONTACT US




                  CORPORATE

              Cygnet Infotech Pvt. Ltd.
      2-A, Manikyam, Opp. Samudra Annexe,
       Nr. Shilp Cross Roads, Off. C. G. Road,
 Navrangpura, Ahmedabad - 380009. Gujarat, India.
             Tel : +91 - 79 - 3048 7400
             Fax : +91 - 79 - 3048 7422


                REGIONAL OFFICE

           Cygnet Infotech Pvt. Ltd.
           403-404, Aditya Arcade
            Nr.Choice Restaurant
              Swastik Cross Road
       Ahmedabad - 380009, Gujarat India.
          Tel : +91 - 79 - 3008 7900
          Fax : +91 - 79 - 3048 7422


                       USA

                Cygnet Infotech LLC
                Mack-Cali Centre III
           140 East Ridgewood Avenue
                    Suite 415 ST
                Paramus, NJ 07652
            Tel : +1 - 646 - 915 - 0021
            Fax : +1 - 201 - 221 - 8516


                       UK

                Cygnet Infotech Ltd.
           Tel : +44 - 20 - 8099 – 1653



http://www.cygnet-infotech.com

 inquiry@cygnet-infotech.com


                                                    17

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Sustainable it outsourcing with cygnet infotech

  • 1. A CASE FOR SUSTAINABLE IT OUTSOURCING A COMPILATION BY CYGNET INFOTECH PVT LTD AHMEDABAD, INDIA This material has been exclusively prepared for marketing and promoting Cygnet Infotech‟s professional IT services. It has been prepared on the basis of web research and internal company information. Care has been taken not to misrepresent any facts or exaggerate any claims. However, we encourage you to verify any information based on which you want to take your decisions. i
  • 2. CONTENTS 1. OUTSOURCING TO INDIA 2. PROS AND CONS OF IT OUTSOURCING 3. FIVE MYTHS OF IT OUTSOURCING 4. BENEFITS OF OFFSHORE SOFTWARE DEVELOPMENT 5. BENEFITS OF OFFSHORE SOFTWARE TESTING 6. BENEFITS OF OUTSOURCING IT SUPPORT 7. ADVANTAGES OF IT OUTSOURCING FOR ISV 8. HOW TO EVALUATE AN IT OUTSOURCING VENDOR 9. CHOOSING A MID-SIZED IT OUTSOURCING VENDOR 10. AHMEDABAD – A RELIABLE IT OUTSOURCING DESTINATION 11. INTRODUCING CYGNET INFOTECH 12. THE CYGNET ADVANTAGE 13. CONTACT US ii
  • 3. 1. OUTSOURCING TO INDIA Global clients look for the most viable and effective Better human rights protection IT outsourcing company in terms of cost, quality As compared to countries such as Philippines and and ease of implementation. Several countries offer China, Indians enjoy a much-secured Government. cost effective and technically advanced IT The human rights of Indians are not violated as outsourcing services to global clients. It becomes often as citizens of other countries. This promotes a necessary for the global client to ensure that it healthy living environment and a safer haven for selects the best country to carry out offshoring Indians to live in, thus making it a better option because of the fierce competition amongst the with respect to IT Outsourcing. nations like India, China, Philippines and Ireland. Tremendous growth opportunity Extremely strong educational system India sees an extremely positive growth chart when It all boils down to the presence of skilled work it comes to Information Technology, in general. The force and subject matter experts in the country country invests almost 10% of its funds in setting where IT Outsourcing is provided. India definitely up IT parks in metropolitan cities in order to has an upper hand because of the strong promote IT Outsourcing activities. This ensures educational system that prevails in the country. well-connected roads, 24-hour uninterrupted Every year, thousands of IT professionals and power supply and international airports in most business executives graduate from world- cities. Most Indian IT companies have well- recognized institutes. Not only their technical established, comfortable and fully equipped knowledge is commendable, but also their development centers to carry out their IT command over English takes them one step higher Outsourcing activities. than professional from China, Philippines etc., when IT Outsourcing is concerned. Excellent work culture Robust Infrastructure & Experience Indians by nature are loyal and hardworking people who give the best of their abilities when it comes to India is considered to be a more matured state their professional lives. Thus the quality of output is when it comes to handling IT Outsourcing because increased, and so is the added value that is of its experience in this area. The fact that carrying provided to the clients, in general. Innovation and out successful IT Outsourcing comes from years of out of the box thinking enables Indians to deliver experience and needs a strong foundation in terms technologically sound solutions that not only of infrastructure and political stability cannot be promotes business but also opens a gateway to ignored. As compared to countries like China and conduct cost-effective means of conducting Ireland, India enjoys the benefit of being the nation business and consequently achieve more end-user with years of IT Outsourcing experience, and thus satisfaction. house to a stronger infrastructure and more number of IT Outsourcing experts. iii
  • 4. 2. PROS AND CONS OF IT OUTSOURCING IT Outsourcing is no more an exclusive technical providing “A heavy competition compels the term used by IT giants; it has become the most service providers to come up with more cost- frequently spoken concept in the field of software effective IT Outsourcing solutions, which in turn development even by emerging small scale leads to depreciation in the quality of the output. companies. IT Outsourcing is considered to be just „Cheap‟ and „high quality‟ never go hand-in hand.” about offshoring some non-core and IT services to In a discussion with IT Outsourcing expert of a well- developing nations. However it is not so, there is established software firm in New Delhi, the threats much more to IT Outsourcing than the basic in carrying out this kind of business became offshoring activity. evident. “When recession hit, we were the first ones On asking about the most important pro of IT to be chucked out both from American and Outsourcing to the CEO of a leading bank in European Countries. This is proof enough of the America, he said, “When offshoring of services are insecurity that we face in carrying out IT opted for, we do not have to worry about Outsourcing.” She continued, “IT Outsourcing may maintaining a conducive infrastructure or recruiting give us good economic progression, however the specially skilled labor force to carry out the IT instability needs to be looked out for. Such activities. We, instead, concentrate on the business occasion stress the importance of having a strong needs.” On asking him about the con that affects hold in the domestic areas.” the concept of IT Outsourcing the most, he From the perspective of employees of referred to the lack of job opportunities for the organizations that provide IT Outsourcing services, natives. “In an effort to minimize the cost involved it is seen as a good opportunity to grow and in carrying out the IT operations, we often tend to enhance the domain level knowledge. A neglect the employment needs of the educated Technology Lead of one such software citizens of our own country.” establishment said, “When we work for abroad From the perspective of service providers, IT clients, we get to interact with them on a day-to- Outsourcing is seen as the most revenue making day basis. Onsite opportunities are available which option. IT Consultant at leading Software Company increases the exposure thus adding value to our in Mumbai told, “IT Outsourcing is where we can skillset, and of course enables us to make some make the most money. As service providers, we quick money too”, he added with a smile. offer affordable and high quality labor without In essence, when IT Outsourcing is concerned, it is compromising the needs of end users.” However, a win-win situation for the clients and the service by providing IT Outsourcing services, he confirmed providers. However economic stability plays a vital the several challenges that lay in this type of service role in the success of IT Outsourcing as a whole. 4
  • 5. 3. FIVE MYTHS OF IT OUTSOURCING Despite the popularity of IT outsourcing, there are Myth 3: It‟s about cheap labor several misconceptions that surround its general More often than not, people associate the term principle of working. Here are some myths: „cheap labor‟ to IT Outsourcing. Myth 1: IT Outsourcing hampers productivity Fact: Quality, Innovation and Specialized skill force There is a general belief that when a client opts for The foremost aim of IT Outsourcing is to find a IT Outsourcing, the overall productivity of the modestly priced provider, who specializes in concern may go down because of several barriers offering high-quality output, has predefined in terms of culture, distance, communication and methodologies and shows innovation in the field of time that exist. IT. Affordable labor is just a side benefit, not the Fact: Productivity is increased with IT outsourcing only deciding factor. Excellent English skills and superior technical Myth 4: IT Outsourcing can be done with knowledge possessed by the employees of IT everything outsourcing companies ensure that the productivity This is really not possible. However, some global sees an upsurge despite time and cultural barriers. clients and software companies try to make it Also, most companies offering IT Outsourcing work happen. as per their client‟s time zone thus ensuring uninterrupted IT activities. In most cases, an onsite Fact: Study, Analyze, Decide on IT Outsourcing project manager is appointed by the IT areas Outsourcing vendor in order to carry out coordination amongst the onsite client managers The software company needs to understand client and offshore team members. requirements thoroughly and perform feasibility study. If the business needs cannot be covered by Myth 2: Global clients opt for IT Outsourcing to cut offshoring the IT activities, then there is no point in costs considering IT Outsourcing. The costs of a company sure see a reduction when Myth 5: Job cuts, job cuts, job cuts! offshoring of IT activities is done. This is not the only reason for clients to opt for IT Outsourcing. IT Outsourcing is seen as the main culprit behind several natives going jobless. However there are Fact: Simplifying the way IT activities are carried out several studies that show otherwise. Often, clients look for technical experts to develop Fact: Economic growth a technical product or application, after the requirements are frozen. Recruiting in-house It‟s about gaining maximum output, with minimum employees and training them is time-consuming input for the country‟s economy when IT and needs specialized attention that the business Outsourcing is done. Consequently a steady people cannot spare. economic growth is seen leading to more employment opportunities for the natives. 5
  • 6. 4. BENEFITS OF OFFSHORE SOFTWARE DEVELOPMENT With people turning to computers to manage and round the clock input. This enables the client to everything from a store‟s inventory to personal release the product quicker into the market and bank details, the concept of software development make a stronger impact as compared to its has taken very strong roots all over the world. As competitors. far as companies in the developed nations are Innovative Ideas – Since offshore software concerned, offshore software development is development utilizes only highly skilled preferred to carry out the IT activities over the in- professionals, the client can benefit from their house development system. Several advantages in innovation and bright technological solutions in terms of cost, time and quality drive the global terms of Information Technology. An overall clients towards offshoring the software betterment of technical approach is guaranteed development activities. with offshore software development. Essentially, the company can benefit in the Extended Support – Most offshore software following areas: development companies offer an extended support Technical Expertise – The presence of numerous for around six months to one year after the software companies that get into offshore software completion of project. This enables effective development provides the clients with a wide maintenance and quick bug fixing of the horizon to choose from. Specialization in specific application thus enhancing the overall efficiency. skillset and ability to excel in one area enables Streamlined processes – The fact that most delivery of perfectly engineered applications when offshore software development companies have offshore software development is selected. well-defined processes and high-quality procedures Cost Cutting – Recruiting specialized skillset from for project management to see tasks to completion the natives could turn out to be a costly affair for enable a focused strategy to be implemented thus the company involved. The investment in one in- adding substantial value to the overall business house employee is the same as an investment in needs. ten offshore software development employees, in Miscellaneous areas – Because of the skilled labor most cases. involved in Offshore Software development, it also Time Savings – With offshore software facilitates leverage in other areas such as Research development to the rescue, the core companies and Development, implementation of refined need not spend time on hiring and training in- methodologies and localization of solutions to house employees for every technical need. Instead, attract regional markets. the time saved by opting for offshore software Thus, an overall value add to the technical aspect development can be used to enhance and enrich of business is achieved when the IT activities are the business ideas. offshored. However, commitment and sincerity on Quick Output - When a global client opts for both ends is a must for a successful long-term offshore software development, conceptualization relationship to last. of an idea is quicker because of the skilled labor 6
  • 7. 5. BENEFITS OF OFFSHORE SOFTWARE TESTING In the field of Information Technology, Quality Agile Testing – This form of testing accommodates Assurance forms the most important aspect of any frequently changing business needs and so the technically sound software. However to ensure number of releases is more, consequently the delivery of a bug-free application it takes a lot of number of times the test set needs to be run is effort, time and labor. In order to gain maximum increased. In this case, offshore software testing advantage in these areas, and to ensure a high- makes the whole testing activity much cheaper and quality product, several global business mammoths more robust. prefer offshore software testing to in-house Expert advice – Since experts in the field of offshore software testing. software testing handle the testing activities, they The multifold benefits of offshoring the Quality can come up with effective and alternative means Assurance activities are as follows: of performing the Quality Assurance activities that save costs and ensure an error-free product such Round the clock testing – Most software companies as automation testing. Such a specialized and that offer offshore software testing have required focused attention provides customers more facilities to run round the clock testing activities leverage in terms of technical concepts, innovative such as a stable test environment, sample test data ideas and cost-cutting mechanisms when offshore and experienced testers as well as test analysts. software testing is chosen. Such long hours of testing and defect reporting aids in quick fixing of the bugs, leading to a quick Cost and Time Savings - The most obvious release of the product into the market advantage is with respect to cost and time saving achieved. By opting for offshore software testing, Pre-defined methodologies – Being experts in the the cost of carrying out the QA activities is field of offshore software testing, most software considerably reduced. Also, the customer does not companies have pre-defined testing models and need to worry about hiring and training in-house defect tracking mechanisms. This guarantees 100% testers when offshore software testing is test coverage and ultimately an error-free product. considered. Duplicate test environment – When offshore Complete Test Coverage – Most companies software testing is opted for, there is a duplicate offering to perform offshore software testing will test environment available that can be used to run provide functional and non-functional testing such sample tests, examine test data and test any new as stress testing, performance testing and releases. It is also possible to experience how the regression testing as a whole package. This ensures live environment would function using the offshore full test coverage from all aspects. software testing environment. Also, creation of test data and maintenance of the same is done by the Apart from these, once offshore software testing is offshore software testing team ensuring that the chosen, the business analysts and employees of the developers do not have to be concerned about company can concentrate on the core business them. activities. 7
  • 8. 6. BENEFITS OF OUTSOURCING IT SUPPORT IT Support projects, more often than not, need to provide higher customer gratification. Thus, with technical experts to be available for 24x7 support IT Support Outsourcing to the rescue, clients can activities. Another demand with respect to IT improvise upon core competencies and internal Support project is the need of extremely capable business structure. and reliable technical engineers who can provide Better control over operating costs - When IT quick resolutions or workarounds to live issues. For Support Outsourcing is opted for, the contract such reasons and more, major IT giants and between the client and the service provider usually worldwide business clients consider IT Support lasts for a year or more. This provides a better Outsourcing. control over the costs of running a project and Some of the most common benefits that IT Support enables the business to predict the expenditure of Outsourcing brings to a client is as below: managing a project over a long duration. Subject Matter Experts - IT Support projects Cost Saving and Time Saving - The responsibility of demand the involvement of technical and highly maintaining skilled labor force and the requisite proficient professionals in the specific area of IT, infrastructure to carry out the IT activities lie with which is facilitated by IT Support Outsourcing the IT Support Outsourcing vendor. Subsequently, vendor. It is impossible for a client to hire technical the client does not need to invest time or money in experts in all the fields and thus offshoring such hiring highly skilled employees or in setting up a services is the best option. The ability of IT robust infrastructure. Outsourcing vendors to provide quick resolutions Globalization and Local market - Clients looking to means increased system uptime and subsequently secure local markets for their products can easily increased customer satisfaction and retention. use the assistance of an IT Support Outsourcing Assured quality - Service level agreements vendor to capture the required market areas. combined with the skilled labor force guarantees Globalization is easily achieved with the aid of a operation efficiency for a client when IT Support global outsourcer. Outsourcing is chosen. The included financial Round the clock response - With IT Support penalty of downtime assures uninterrupted and Outsourcing, there is no fear of losing business due high-quality services from the vendor providing IT to unexpected issues or network problems. Since Support activities. The end-user support provided is the network engineers and technical engineers improvised and services are delivered with accuracy work round the clock to assure continuous service, in lesser time in IT Support Outsourcing. the overall benefit with respect to customer Enhance business needs - Without the satisfaction and prevention of any kind of severe responsibility of providing support to the ongoing business damage is achieved. projects, the business executives can concentrate on core business needs and ways to revamp them 8
  • 9. 7. ADVANTAGES OF IT OUTSOURCING FOR ISVS (INDEPENDENT SOFTWARE VENDORS) The fierce competition in terms of technology, because of quicker resolutions and lesser product innovation and application development turnaround times during a malfunction of the amongst the various Independent Software application. Vendors has led to the necessity of opting for IT Innovation and Credibility Outsourcing as cost-effective methods of developing products and applications. Some of the The IT Outsourcing enables the ISVs to have a most important advantages of IT Outsourcing for resource pool of highly skilled IT professionals who ISVs are as below: do not only excel in delivering the expected output, but also prove to be a trusted source for innovation Advanced Technological Accessibility and creativity. The new bright ideas from such IT Outsourcing gives ISVs access to several professionals help the ISVs see what is beyond the advanced third party technologies which otherwise normal and explore into new territories and would remain an alien concept to them. Through concepts. Because of their qualification, experience an easy accessibility of such advanced and expertise, the resources of IT Outsourcing technologies, ISVs can explore and experiment with Company are credible and reliable. several different solutions and products thus giving Concentrate on core product needs them a higher visibility and leverage in the digitally competitive market. With IT Outsourcing available to manage the IT activities, the ISVs‟ employees are free to Lesser time to market concentrate on the ultimate business objectives The general marketing principle is - The first one to including product innovation, product release a product ultimately makes a greater management and product marketing. This enables impact. By choosing to do IT Outsourcing, ISVs them to stay ahead of their competitors and make reduce the production time, thus reaching the advancements in the chosen product field instead market earlier that their competitors who follow in- of worrying about developing the product or house development. The product roadmaps need testing its effectiveness. not be maintained by ISVs, but can be given to the R&D support IT Outsourcing company in order for them to realize and act upon the time constraints. For every ISV, the Research and Development department is the most crucial one since it is where Round the clock working hours the new ideas and concepts are experimented and IT Outsourcing means, in most cases, twenty-four explored to understand their usability and hours zone coverage during the product feasibility. IT Outsourcing provides the perfect development life cycle. This ensures quick platform for such activities at an affordable cost development of product, foolproof testing cycles with experts overseeing results of such trials. followed by immediate bug fixing activities. Thus Thus, IT Outsourcing facilitates increased profit time saving is achieved from all angles. In case of margins and lesser time-to-market, giving leverage opting for IT Outsourcing for supporting a live to such ISVs in the highly competitive market today. product or application, business loss is minimized 9
  • 10. 8. HOW TO EVALUATE AN IT OUTSOURCING VENDOR IT Outsourcing is perceived as the area that results be available with the IT Outsourcing vendor. Also, in maximum cost reduction for global clients any miscellaneous systems such as switching leading to an increase in the overall profit. equipment, call routing software, automatic call Consequently, global clients see it as a considerable distributors etc., if necessitated by the IT challenge to choose an appropriate IT Outsourcing Outsourcing, must be available within the campus Vendor amongst the numerous companies offering of IT Outsourcing vendor. IT Outsourcing services. Several factors such as Cost – IT Outsourcing is opted for by business in quality of work, expertise level and reputation in the order to save cost. So, it is essential that the chosen field of IT Outsourcing govern a client‟s decision IT Outsourcing vendor provides high quality with regards to considering a suitable IT services at an affordable cost. Outsourcing vendor. Innovation and Inventions – IT Outsourcing is not In general, in order to evaluate an IT Outsourcing just about offshoring a bunch of IT activities; it is vendor, the customer must consider the below: also an invitation to the offshore counterpart to Infrastructure – If the service provider who is come up with innovative ideas to benefit the offering to provide IT Outsourcing services lacks business. Coming up with cost-effective solutions, the proper infrastructure, then it is a given that it being able to show creativity in the field of IT will not make a very good IT Outsourcing vendor. Outsourcing and being able to provide an overall Proper buildings, accessible office location and value add to the client is very crucial. And above all, comfortable working atmosphere for the the quality of output while providing IT employees are mandatory attributes that the IT Outsourcing services must not be compromised. Outsourcing vendor must possess. The clients, more often than not, prefer to pay the Subject Matter Experts – It is imperative to assure campus of IT Outsourcing vendor a visit in order to that the IT Outsourcing vendor holds the workforce understand if they possess all the requisites in order with required skillset to carry out the IT activities. to carry out the IT Outsourcing operations with Also, the presence of Subject Matter Experts in the ease and expertise. In some cases, interviewing the area where IT Outsourcing is to be done is a must. employees of the service provider throws some This could mean a banking domain expert, or a light about their proficiency in the area of IT health insurance domain expert; depending upon Outsourcing. Going through the portfolio of the for which domain IT Outsourcing is being service provider and getting to know about its considered. client base and their testimonies can help in the overall evaluation of a suitable vendor to carry out Resources – Resources such as computer systems, the IT Outsourcing. telephone lines and other hardware systems must 10
  • 11. 9. CHOOSING A MID-SIZED IT OUTSOURCING VENDOR: PROS AND CONS The huge volume of service providers with Lack of experience exceptional resources, rapid changes in the IT Most mid-sized IT Outsourcing vendor would not industry, and aggressive competition contribute to have faced the day to day challenges involved in a daunting process of hunting a suitable IT handling a highly demanding and volatile project. Outsourcing vendor for the clients. There are More often than not, they have a very limited client several mammoths in the IT industry that are base and so their exposure is fairly restricted. targets for IT Outsourcing for major global clients. However, with several new software companies Learnability and Adaptability cropping up, the inclination towards choosing a mid-sized IT Outsourcing vendor is increasing. The lack of experience may as well work out in the favor of clients since the IT professionals of such an Below are some of the pros and cons in this emerging software company would be open to choosing a mid-sized IT Outsourcing vendor: challenging ideas and new concepts. They would be willing to experiment and be pretty flexible thus Lack of Analysts reports giving a leverage to the clients in terms of When considering IT Outsourcing, one of the most exploring new dimensions. important factors is choosing an organization with Infrastructure limitations a good reputation. The IT industry is congested with so many hi-profile companies, that the newly It is a giver that a mid-sized IT Outsourcing vendor emerging IT Outsourcing vendors do not find would not have all the sophisticated hardware themselves mentioned in any report to talk of their equipment or the software technologies at hand. A credibility. This necessitates the client to take extra client needs to evaluate the vendor‟s hardware and measures to understand the reliability of the IT software capabilities prior to sealing a deal with Outsourcing vendor in terms of cost, quality and them in order to prevent any future hassles in commitment to deadline. terms of deliverables. Eager to Please Further Cost Reduction It is obvious that when a mid-sized IT Outsourcing A mid-sized IT Outsourcing vendor would be able vendor is chosen, the client is presented with a to provide services at a much cheaper rate than an team of young professionals who are eager to established vendor, because of the fact that they please and work harder in order to establish a are new entrants into the field and cannot afford to strong foundation in the IT industry. A set of fresh be costly. However, it is imperative to ensure that eyes coming up with new and innovative ideas is a the quality of output is not compromised, sure shot boost to the client‟s productivity, and whatsoever be the case. ultimately, revenue. Clients must weigh both pros and cons of selecting a mid-sized outsourcing partner. 11
  • 12. 10. AHMEDABAD: A RELIABLE IT OUTSOURCING DESTINATION Most IT giants and core business mammoths are since the city has seen several software companies seeking IT Outsourcing as a profitable and reliable cropping up recently which have IT Outsourcing as means to offshore the IT activities. The most the major service. popular IT hubs such as Chennai and Bangalore The presence of an International airport, well- seem to be saturated, and thus Ahmedabad is connected roads and steady electricity supply make being considered as a city that has tremendous Ahmedabad an apt destination for IT Outsourcing. potential to be the next IT hub. Prior to indulging in The Government seeing the immense opportunities IT Outsourcing activities, the customers seek for the in the field of IT Outsourcing has plans to construct most profitable location in terms of cost, IT park of about 1.5mn square feet just outside the infrastructure and other resources. Ahmedabad city of Ahmedabad. This kind of government clearly stands out as one such location. backing is an open invitation for international IT The fact that Gujarat has more than sixty-five companies to do business with Ahmedabad percent of people belonging to the age group companies. The cost of living in Ahmedabad is below 35 is a sure boon to Ahmedabad. Also, lower as compared to other developed cities such Ahmedabad is the house to some of the best as Pune, Bangalore and Delhi, thus lowering the Universities in India, stressing on the presence of cost of skilled labor and resilient infrastructure for IT strong educational background in all the activities. inhabitants of the city. In addition to this, the city of Thus IT Outsourcing at Ahmedabad is seen as a Ahmedabad has a sturdy infrastructure and its cost-effective way of carrying out IT related residents have definite upper hand in terms of the business since it eliminates the cost for in-house knowledge of English, as a language. specialized skilled workforce and infrastructure. Since IT Outsourcing is where most software Advanced technological solutions, groundbreaking companies make money and profit, the analysis mechanisms and award-winning competition is on a steady rise in this area. innovations are used by the software companies in Ahmedabad takes pride in being able to provide Ahmedabad as a strong leverage to attract global such a healthy competitive atmosphere because of clients with respect to IT Outsourcing. So it is the presence of several IT companies in the city of justified to conclude that for organizations seeking Ahmedabad. So, customers are presented with a offshoring partners to carry out IT Outsourcing, broader scope of viable options in Ahmedabad Ahmedabad is the best bet as of today. 12
  • 13. 11. INTRODUCING CYGNET INFOTECH Cygnet Infotech is a software services provider based out of Ahmedabad, Gujarat, India. It has been providing outsourced software development, testing and maintenance services for more than 11 years. It has developed a client base in over 20 countries including USA, UK, France, Ireland, Australia, Singapore, Sri Lanka, Germany, Spain, Canada, and Mexico. Technology Expertise 13
  • 14. 12. THE CYGNET ADVANTAGE Cygnet is uniquely positioned to offer you a range of technology solutions for your business requirements. You can count on us because of our following strengths. We are Microsoft Specialists Cygnet has a bias towards Microsoft technologies since they are most widely used across the world. They have end user acceptance and are supported by one of the largest corporation in the world. Cygnet has been a Microsoft Gold certified partner till last year when Microsoft introduced the various competencies for its partners. We have achieved Gold competency in web development and Silver competency in content management, data platform, mid-market solution provider, portals and collaboration, search and software development. We also have significant experience in application services, systems integration, migration, product engineering, testing and validation, business process outsourcing and mobile application development. Cygnet Microsoft Learning Solutions Center Cygnet runs a certified Microsoft training center which attracts hundreds of students and professionals each year who wish to develop their expertise in Microsoft technologies. The Microsoft Learning Solutions Center is an effort to backward integrate for sourcing and growing talent in-house. This is a one of a kind set up in the whole of Gujarat state where a software development company has its own Microsoft Training Center. When you engage Cygnet, you have many advantages.  Cygnet can always provide the best talent in Microsoft technologies because it has Microsoft certified trainers on its employee rolls  Cygnet is able to attract the best Microsoft resources to work forour clients  Cygnet can ramp up resources on short notice  Cygnet has direct access to exclusive Microsoft training resources 14
  • 15. We have invested in Good Infrastructure Cygnet's offshore development centers in Ahmedabad, India are equipped with world class infrastructure and facilities We are committed to Quality, Reliability and Security for Project Execution and Delivery Cygnet is ISO 9001:2008 certified company: We have a defined quality policy which is embraced by employees at all levels of the organization. A transparent SDLC (Software Development Life Cycle) guides the various processes from estimation, planning, requirements analysis, design, coding, testing, release, deployment and support. As a client you are always in tune with the current status of your project. We rigorously follow international accepted coding standards and best practices for developing our solutions. As a client, you are assured of high quality deliverables and an amicable process for making enhancements. Cygnet is CMMi Level 3 certified: The CMMi (Capability Maturity Model Integration) level 3 assures you that we are proactively engaged in improving our processes to provide better solutions and experience to our clients. We understand that each client has unique business needs and we tailor our execution methodology to align with the project requirements in a mature manner. Cygnet is ISO 27000:2005 certified: At Cygnet, we take Information security and risk management very seriously. We are focused on providing our clients with business continuity and a competitive edge by planning for and investing in security policies and infrastructure to minimize the impact of information related threats and vulnerabilities. 15
  • 16. We are located in Ahmedabad, India According to a recent report by Gartner Inc, India is still the undisputed leader in offering offshore services. India has scored higher in all the 10 evaluation parameters - language, government support, labor pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, globalization and legal maturity, and data and intellectual property security and privacy in comparison to other countries. Although the top cities for outsourcing are Bangalore, Mumbai, Hyderabad and Delhi, they are getting saturated in terms of infrastructure and are facing higher resource costs. However, there are a number of tier 2 cities such as Pune, Ahmedabad, Chennai, Kolkata and others which are growing into noteworthyIT hubs and are offering more competitive outsourcing opportunities. Ahmedabad is the commercial capital of Gujarat, which is one of the fastest growing states in India. The Vibrant Gujarat Summit in Jan 2011 saw the signing of MoUs in various industry sectors to the tune of $243 billion. Ahmedabad is fast becoming a destination of choice for outsourcing because of the following reasons  Educational institutions of high standing (IIM-A, DAIICT, and others) which provide high quality English speaking resources  World class infrastructure in terms of uninterrupted power supply, international airport, high quality roads, and government support  Cheaper cost structures (almost 30-40% lower) compared to tier 1 IT hubs like Bangalore Cygnet has been servicing clients across the globe for more than a decade from Ahmedabad and we would love to work with you. 16
  • 17. CONTACT US CORPORATE Cygnet Infotech Pvt. Ltd. 2-A, Manikyam, Opp. Samudra Annexe, Nr. Shilp Cross Roads, Off. C. G. Road, Navrangpura, Ahmedabad - 380009. Gujarat, India. Tel : +91 - 79 - 3048 7400 Fax : +91 - 79 - 3048 7422 REGIONAL OFFICE Cygnet Infotech Pvt. Ltd. 403-404, Aditya Arcade Nr.Choice Restaurant Swastik Cross Road Ahmedabad - 380009, Gujarat India. Tel : +91 - 79 - 3008 7900 Fax : +91 - 79 - 3048 7422 USA Cygnet Infotech LLC Mack-Cali Centre III 140 East Ridgewood Avenue Suite 415 ST Paramus, NJ 07652 Tel : +1 - 646 - 915 - 0021 Fax : +1 - 201 - 221 - 8516 UK Cygnet Infotech Ltd. Tel : +44 - 20 - 8099 – 1653 http://www.cygnet-infotech.com inquiry@cygnet-infotech.com 17