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Slide 1: Software Outsourcing Realities and Perspectives: Brief Overview 8/26/10 www.softheme.com
Slide 2: Table of Contents § Facts About Outsourcing Benefits of Outsourcing Reasons Companies Outsource Future Trends in Outsourcing Outsource Solution § § § § www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 3: Facts about Outsourcing § When the idea of outsourcing was first brought in, in the 1970s, it was only the manufacturing companies that contracted out their job functions One in 5 UK workers at risk from outsourcing have difficulties reading and writing. The UK struggles to turn out just 8,000 IT graduates a year Future economic growth depends on new generations of creative, dynamic entrepreneurs, with good access to venture capital, who will drive national economies through transition § § www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 4: Benefits of Outsourcing Operational expertise Access to talent Cost restructuring Cost savings Scalability Improve quality Creating leisure time Tax Benefit Enhance capacity for innovation www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 5: Benefits of Outsourcing Cost savings The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring. Access to lower cost economies through offshoring called "labor arbitrage" generated by the wage gap between industrialized and developing nations. www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 6: Benefits of Outsourcing Tax Benefit Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country. www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 7: Benefits of Outsourcing Access to Talent Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering. www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 8: Benefits of Outsourcing Time {59BD4874-148E-44FC-B68B-0125D6649054} {4B7E869B-D966-4B40-AA2B-1F606E6885C9} Work day: 9 a.m. – 6 p.m. Ukraine USA Work day: 9 a.m. – 6 p.m. www.softheme.com 8/26/10 Outsourcing to Softheme™ Total: 16 hours a day Softheme: Software Outsourcing Realities and Perspectives
Slide 9: Reasons Companies Outsource Improve company focus Reduce and control operating costs Free resources Gain access to world-class capabilities Resources not available internally Accelerate reengineering benefits Reduce time to market Share risks Take advantage of offshore capabilities Function difficult to manage or out of control www.softheme.com 55% 54% 38% 36% 25% 20% 18% 12% 12% 10% Softheme: Software Outsourcing Realities and Perspectives 8/26/10 Outsourcing to Softheme™
Slide 10: Future Trends in Outsourcing India and China resort to more skill-oriented outsourcing, the questions that the United States would increasingly need to ask is: why should a software guy with the same qualifications be paid more in the US, when there is a similar guy in India willing to do the same job at one-fourth the cost. www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 11: Future Trends in Outsourcing Outsourcing is continuously expanding when it comes to vertical industry reach as well as geographic scope. Best-shoring is now considered the best emerging strategy for outsourcing business. www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 12: Future Trends in Outsourcing The globalization of the workforce will continue to emerge and there will be a push to increase the quality of outsourcing skills set. www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 13: Future Trends In Outsourcing Management challenges will become more pressing as the increase in global salaries dissipate the easy cost gains from offshore outsourcing. Furthermore, the successful companies in the future will be those that take advantage of global talent to help transform the company and their industry while still providing jobs for everyone. www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 14: Application process and initial screening treOutsource Solution design and implementation Candidate sourcing Campus research Market branding {0936D2BC-1E8D-4141-A3F6-DCADE4B5E00E} Total Outsource Solution {17CB575B-14AB-4DDB-9057-3E29900148CC} Process design www.softheme.com 8/26/10 Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives
Slide 15: Thank you! Questions??? → info@softheme.com 2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions 8/26/10 www.softheme.com » Outsourcing to Softheme™