Offshore Outsourcing

1
Offshore Outsourcing

• Samir Bodas
• CEO
• Disha Technologies Inc.

2
Offshoring - Big Drivers

• Tighter venture funding
• Need longer runways
• Core Vs Context
• Focus on strategic issues
• Quicker time to market
• Ready-to-deploy teams, tap into leadership
  bandwidth
• Flexibility with the skill mix
• Right resource, right time, right challenge
• Get it right the first time
• More important than ever

3
Comparative Positioning Of Offshore Destinations
Legend H High, M Medium, L Low Source
NASSCOM, Gartner Research, Disha Analysis
4
Challenges and Hidden Costs

• Transition cost, learning curve
• Process maturity gap
• Management overhead
• Unbalanced risk / reward equation
• Cultural issues

5
But... Significant Savings
100 US Cost
Savings (48)
4
Managing contract
6
19
Changing development
processes
Lost Productivity / Cultural
Issues
19
Transition the work
52
Vendor Selection
Hidden Costs (17)
Vendor Charge (35)
28
28
Labor Costs
Taxes Insurance
Markups and Margins
12
Travel and Communications
32
Source Gartner, Mckinsey Co., A.T. Kearney,
CIO Magazine
6
Tips for Successful Offshoring

• Considered selection of offshoring model
• Lowest price does not mean maximum savings
• Long term commitment
• Invest in ramp-up and training
• Establish robust communication and reporting
  model
• Proactively manage ongoing relationship 
• Define crisp success criteria and measure
  diligently

7
Thank You!