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Brian Borack: “The Client Perspective”

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Brian Borack: “The Client Perspective”

  1. 1. The Client Perspective Brian Borack COO SoftServe
  2. 2. Agenda 1. Decision making process 2. Key success factors 3. Lessons learned
  3. 3. Key Facts Total Revenue Fiscal 2013 - $2.2 billion Number of Employees - ~ 6,000 Countries - 120 Patents - 205 Partners - 500 Customers - 20,000
  4. 4. ** * ** R&D – some product lines over 80% in India Issue – Risk of India Too High Solution - Diversification Development Centers (2010) – US, UK, Israel and India
  5. 5. Industry Research on Outsourcing  Gartner  Forrester  And more… Known Vendors  Top Outsourcing companies Industry Friends and Family  Industry Friends and Family Steps to Build Criteria for Where to Go
  6. 6. Top 10 Decision Criteria from Gartner *Gartner Research Oct. 2010 Offshore Services Analysis Language Government Support Labor Pool Infrastructure Educational System Cost Political and Economic Environment Cultural Compatibility Global and Legal Maturity Data and Intellectual Property Security and Privacy
  7. 7. And Then I Added More… Travel Accessibility (VISA) Timezone Market (Sales Opportunity) Attrition Rates Salary Inflation Experience in the Region References
  8. 8. Now Where to Go – Top 4 Finalists Eastern Europe Asia South America US On-Shore ….
  9. 9. Decision Criteria and Rankings Argentina China Russia Ukraine Gartner Criteria Ratings Weight Raw Weighted Raw Weighted Raw Weighted Raw Weighted Language 3 3 9 3 9 3 9 4 12 Government support 1 3 3 7 7 3 3 1 1 Labor pool 5 3 15 5 25 5 25 4 20 Infrastructure 1 3 3 7 7 3 3 1 1 Educational system 3 3 9 5 15 5 15 5 15 Cost 5 5 25 5 25 3 15 5 25 Political and economic environment 1 3 3 7 7 1 1 1 1 Cultural compatibility 3 5 15 5 15 5 15 3 9 Global and legal maturity 3 3 9 3 9 3 9 3 9 Data and intellectual property security and privacy 3 1 3 1 3 3 9 1 3 Total Gartner Score 32 94 48 122 34 104 28 96 Additional Criteria Travel Accessability 1 5 5 1 1 3 3 5 5 Timezone 3 7 21 1 3 5 15 5 15 Market (Sales Opportunity) 3 3 9 7 21 3 9 3 9 Attrition Rates 3 5 15 3 9 5 15 7 21 Salary Inflation 3 3 9 3 9 3 9 5 15 Experience in Region 3 3 9 1 3 1 3 10 30 References 3 3 9 3 9 5 15 10 30 Total Score 29 77 19 55 25 69 45 125 Total Score 61 171 67 177 59 173 73 221
  10. 10. And the Winner…. China Almost Won! 1. Labor Pool 2. Cost 3. Education System 4. Language 5. References 6. Attrition 7. Timezone 8. Experience
  11. 11. Final Validation Business Risks (2010) Threat Level Future Indicator Political Stability High Improving Economic High Improving Infrastructure Medium Improving Business and Regulatory Environment High Improving Corruption High Continued Labor Low Continued Security – Terrorism Low Continued Security – Crime Medium Continued Future Environment Medium Improving References 3rd Party Risk Validation
  12. 12. Final Decision – Partnership or Captive? Risk Mitigation Strategy with Partner Model  IP Assignment  Compliance/Ethics Policy  Information Security Policy  Oversight  Code Reviews 10 Criteria for Contract  Multi-year Contract  Build, Operate and Transfer  Defined Cost Increases  Termination Clause  SLAs with Penalties
  13. 13. Key Success Factors
  14. 14. #1 Lesson Learned All About Expectations on Both Sides
  15. 15. How Did the Story End?  Hundreds in ~ 3 years  Driving Strategic Projects  High Client Satisfaction
  16. 16. Запитання?

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