Software Outsourcing

Outsource Your Project or Build a Team

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Table of Contents
• IT Outsourcing Models
• Outsource Your Project
 Overview
 Business Case
 Advantages
 Pricing Models
• Build a Team
 Overview
 Structure
 Methodology
 Benefits

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IT Outsourcing Models

There is no doubt that IT Outsourcing is

the obvious choice for most companies,
as in-house IT staff are expensive, difficult
to motivate and manage, and in many
cases they don’t stay around for very long.

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IT Outsourcing Models
When it comes to IT Outsourcing, there are two main support models:

Traditional IT Outsourcing is a lot like having your own in-house IT staff – except
that they were not on your own payroll. Instead, you pay the IT Outsourcing
company to provide a certain number of staff for a pre-determined number of
hours per week or month.

Managed Services, on the other hand, is a different model of IT Outsourcing

altogether. Instead of paying for the time of an IT employee, you are paying for
your systems to be properly designed, maintained and supported – regardless of
what the service provider has to do to achieve that. Ultimately, this is the end
objective of any IT department.

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Outsource Your Project
Overview

Project-based outsourcing is the best fit in case

your project requirements and deliverables are
clearly defined. It proves to be the ultimate choice
for irregular though ongoing or one-off projects.
Project-based outsourcing provides for greater
flexibility and focus, catering for changing needs
for resources with pricing being based on the
project scope.

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Outsource Your Project
Business Case

You may consider project outsourcing when:

Cost benefits are to be obtained immediately

Outsourcing for you is rather short/mid-term goal, not a strategy
Long-term investments are not intended
Short-term project could not be handled internally
Missing specific skills/know-how
Project deadlines are constrained

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Outsource Your Project
Advantages

Project deadline is known before the initialization of project

Fixed costs and fixed budget

Quick realization of cost savings

Access to specific technology expertise and best practices

Avoidance of long-term risk

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Outsource Your Project
Pricing models
Time and Materials

Managed Capacity
A certain
Based on the quantity of
Fixed Price

Fixed
number of person-hours
amount of
hours of work or person-days
money is
completed at a pre-
guaranteed.
per day. negotiated
rate.

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Build a Team
Overview

Customers get dedicated resource base that is working exclusively on

their projects and can be managed as if it were their internal department.

These delivery model caters for software with changing requirements,

maintenance and support of large systems, research and development,
testing as well as other types of complex ongoing tasks.

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Build a Team
Structure

QA Team

Client

Client Project Manager Programming

Co-Coordinator Team

Your In-House
Resources Design and SEO
Team

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Build a Team
Methodology

Step 1. Project Team Creation

Step 2. Onsite to Offshore Knowledge curve

Step 3. Offshore Process Definition

Step 4. Offshore Simulation

Step 5. Offshore Project Execution

Step 6. Review the project deliverables and

identify the weak areas of
the implementation

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Build a Team
Methodology

Project Team Creation

- Scope Agreement sign off
- Need to identify key team members for project

Onsite to Offshore Knowledge Transition

The main goal for this phase is to understand the client requirements,
business processes, company standards, the specific systems IT
environment as well as the approach that will be used. It's a huge
learning curve

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Build a Team
Methodology

Offshore Process Definition

Perform customization of the methodology for the client specific
requirements

Offshore Simulation
- Simulate client IT environment at offshore development Center
- Review and confirm the Service Level Agreements
- Build the Offshore Infrastructure (IT, software and physical)
- Set up the offshore team
- Metric-defined training of the Offshore Development team

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Build a Team
Methodology

Offshore Project Execution

Start executing project according to the project plan
for the first 6 month period

Review the project deliverables and identify the weak areas of the
implementation
- Implement the feedback
- Have the first year Service Agreement review

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Build a Team
Benefits

No long-term initial investments, flexible pricing, quick ROI

Full operational control, complete flexibility of operations
Readily available facilities/infrastructure
Consistent but flexible team
Seamless integration into customer's workflow and processes
Accumulation of customer-specific knowledge
Strong service delivery and methodology practices

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 Thank you!

Questions? → info@softheme.com

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