Using Outsourcing Partners Competence to Succeed During the Downturn

1
Using Outsourcing Partners Competence to Succeed
During the Downturn
Ulad Radkevitch, PhD VP marketing, sales and
business development

• 3 November 2009
• Kaatsheuvel, The Netherlands

2
Company Overview

• ABOUT US
• REASONS TO OUTSOURCE S AND THE CRISIS
• WAYS TO CREATE VALUE TOGETHER

3
Quick Facts

• Founded in 1989, over 250 employees
• 200 successfully completed large and small
  outsourcing projects
• Experienced in software projects of 100
  man-years
• IBM, Tieto, Baxter Healthcare, Cambridge Soft
  among customers
• Selected as an IBM Core supplier for technical
  services for 2009
• ISO 90012000 certified, CMMI3 pre-assessed

4
ScienceSofts Identity
A European IT company offering high quality
cost-effective software development outsourcing
services as well as focused expertise in several
technology niches.
WHO WE ARE
WHAT WE DO

• Software application development outsourcing
• Microsoft technology consulting
• Wireless/Mobile application development
• Database and application migration
• Manual and automated software testing

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Specialized Services

• Microsoft technology consulting
• BizTalk
• SharePoint
• .Net

• Mobile software development
• Development
• Testing
• Consulting
• All major platforms covered

• Software migration
• Unique tools
• Database Migration
• Application Migration
• BL Conversion

• Testing services
• Functional testing
• Performance testing
• Security testing
• Test automation
• Consulting

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What is Outsourcing Partnership?

• Partnership (a definition) - a cooperative
  relationship between people or groups who agree
  to share responsibility for achieving some
  specific goal "effective language learning is a
  partnership between school, teacher and student"
  "the action teams worked in partnership with the
  government"

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Traditional Reasons for (Offshore) Outsourcing

• Reduce and control costs
• Overcome resource pool limitations
• Increase flexibility (very important both in the
  downturn and recovery)
• Avoid distraction and focus on your core
  competence
• Bandwagon effect

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Impact of the Downturn on the customers

• Budgets are cut, offshore/ nearshore teams get
  reduced
• Projects put on hold, decisions delayed
• Some get bust/ acquired
• So, how can you use your outsourcing partner to
  survive/ succeed in these circumstances?

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Some Ideas and Experience

• Create an integrated value chain with your
  partner
• Use your partners resources to improve time to
  market
• Use partners competence to expand your offering
  at your home market
• Join resources with your partner to achieve
  common goals

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Create an Integrated Value Chain

• Use creativity/ competence of your partner
• Do things together, not just outsource
• Ideas should flow in both directions
• Create the sense of involvement
• Turn your partner into an RD center
• Case study A Dutch marketing agency

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Improve Time to Market

• Several things your partner can do for you in
  terms of product development
• Come up fast with estimations
• Make pre-studies, develop proof of concept,
  prototypes
• Expend your project team fast with internally
  available resources
• Hire when you do not want to hire
• Case study German subsidiary of a major US
  media/ entertainment company

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Use your Partners Competence to Expand your
Offerings

• Know your partner explore your partners skills
  and competencies
• Look for synergy
• Turn yourself into your partners onsite front
  end/ sales channel
• Case study Finnish SaaS start-up

13
Join Resources to Achieve Common Goals

• Do you have common goals? Define them!
• Define mid-term and long term strategy
• Set targets and milestones
• Set up a join budget
• Case study Dutch IT consultancy based in
  Kaatsheuvel