Brian Borack: “The Client Perspective”
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The Client Perspective Brian Borack COO SoftServe
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Transcript of Brian Borack: “The Client Perspective”
The Client Perspective
Brian Borack
COO SoftServe
Agenda
1. Decision making process
2. Key success factors
3. Lessons learned
Key FactsTotal Revenue Fiscal 2013 - $2.2 billionNumber of Employees - ~ 6,000Countries - 120Patents - 205Partners - 500Customers - 20,000
** ***
R&D – some product lines over 80% in IndiaIssue – Risk of India Too High
Solution - Diversification
Development Centers (2010) – US, UK, Israel and India
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
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
And Then I Added More…
Travel Accessibility (VISA)
Timezone
Market (Sales Opportunity)
Attrition Rates
Salary Inflation
Experience in the Region
References
Now Where to Go – Top 4 Finalists
Eastern Europe
Asia
South America
US On-Shore
….
Decision Criteria and RankingsArgentina China Russia Ukraine
Gartner Criteria Ratings Weight Raw Weighted Raw Weighted Raw Weighted Raw WeightedLanguage 3 3 9 3 9 3 9 4 12Government support 1 3 3 7 7 3 3 1 1Labor pool 5 3 15 5 25 5 25 4 20Infrastructure 1 3 3 7 7 3 3 1 1Educational system 3 3 9 5 15 5 15 5 15Cost 5 5 25 5 25 3 15 5 25Political and economic environment 1 3 3 7 7 1 1 1 1Cultural compatibility 3 5 15 5 15 5 15 3 9Global and legal maturity 3 3 9 3 9 3 9 3 9Data and intellectual property security and privacy 3 1 3 1 3 3 9 1 3Total Gartner Score 32 94 48 122 34 104 28 96
Additional CriteriaTravel Accessability 1 5 5 1 1 3 3 5 5Timezone 3 7 21 1 3 5 15 5 15Market (Sales Opportunity) 3 3 9 7 21 3 9 3 9Attrition Rates 3 5 15 3 9 5 15 7 21Salary Inflation 3 3 9 3 9 3 9 5 15Experience in Region 3 3 9 1 3 1 3 10 30References 3 3 9 3 9 5 15 10 30Total Score 29 77 19 55 25 69 45 125
Total Score 61 171 67 177 59 173 73 221
And the Winner….
China Almost Won!
1. Labor Pool
2. Cost
3. Education System
4. Language
5. References
6. Attrition
7. Timezone
8. Experience
Final Validation
Business Risks (2010) Threat Level Future Indicator Political Stability High ImprovingEconomic High ImprovingInfrastructure Medium ImprovingBusiness and Regulatory Environment High ImprovingCorruption High ContinuedLabor Low ContinuedSecurity – Terrorism Low ContinuedSecurity – Crime Medium ContinuedFuture Environment Medium Improving
References
3rd Party Risk Validation
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
Key Success Factors
#1 Lesson Learned
All About Expectations on Both Sides
How Did the Story End?
Hundreds in ~ 3 years
Driving Strategic Projects
High Client Satisfaction
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