IT Outsourcing from USA to Romania An underutilized option presented by IT Six Global Services
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Transcript of IT Outsourcing from USA to Romania An underutilized option presented by IT Six Global Services
IT Outsourcing from USA to Romania An underutilized optionpresented by IT Six Global Services
January 26th 2011
Speakers
Camil TomaAR-NE
Sorin GavanescuCEO, IT Six Global Services, Craiova
Dan TusaliuVP of Business Development, IT Six Global Services, Craiova
Summary
Welcome note by Camil Toma, AR-NE
Advantages & Difficulties in the market
Outsourcing and Business Models
By Sorin Gavanescu, CEO of IT Six Global Services
RomaniaIT – The Perfect Outsourcing Model
By Dan Tusaliu, VP of Business Development, IT Six
IT Six, short company presentation
Q&A
18:00 pm - 19:30 pm
Advantages and Difficultieswith IT outsourcing
1. Savings2. Resources3. Specialists
Expected outcome:
50 – 70%
Real outcome:
40% are disappointed – why?50 – 70%
Advantages and Difficultieswith IT outsourcing
Common Reasons
General• Inexperienced buyer
• missing the engagement phase• not “anchored” in the organisation
• Wrong Outsourcing Model• Communication problems
Offshore• Culture/language• Distance• No local representation• Time difference• Legal aspects
Advantages and Difficultieswith IT outsourcing
Do I dare to Outsource?
- How do I keep control?- How will my staff accept outsourcing?- Are there hidden costs?- Language problems?- Requirements on me?
YES Offshoring to... Romania!
Offshore
Culture/language Romania
better than rumoursexcellent English
Distance 7hrs from Boston Local representationLegal aspectsUS law, NATO country
General
Inexperienced buyer Learn from others mistakesWrong Outsourcing Model Choose the model that fitsCommunication problems Establish the “essential link”
Do I dare to Outsource?
1944 – ENIAC – University of Pennsylvania and the US Army
1957, eng. Victor Toma (future member of honor of the Romanian Academy) builds the first digital electronic computer in Romania (CIFA-1, 1500 electronic tubes and magnetic memory cylinder, realized at the Academy Institute of Physics, Măgurele).
In reality, CIFA-1 was operational since 1955
Romania is the 8th country in the world to build a computer and the 2nd country in the former Eastern Block
Better computers were built in 1959, 1961, 1962 (CIFA-4)
Between 1957 – 1959 new computers were built at the Polytechnic Institute in Timisoara (MECIPT 1) and the Computing Institute in Cluj (DACICC 1)
A Little Bit of History
• Good Romanian Vendors will have:– superlative service– methodology and technology proficiency
(best ones are properly trained in AGILE / SCRUM / XP etc)– vertical industry expertise– stunning people– Stability– a winning combination of local leadership with offshore engineers
• YOU should:– Check: point out any perceived flaws identified during analysis– Benchmark: point out differentiators in your envisioned software from existing competitor
products– Get involved: Suggest improvements, alternatives and extensions to features– Trust your partner for good technology advice and best practice
Helping the client beyond building software
Engagement Process
Order Start Project Acceptance Maintenance
Very important phases in an offshore project
YOU should:- provide all available and non-confidential information related to the project
• technology, business context, business goal, infrastructure, tools- always more attention required in planning if existing project needs to be migrated
Vendor - ideally have the opportunity to suggest better architecture, process, technology, tools- essential to understand the CONTEXT right- agreement on the principles of collaboration, shared roles, responsibility, decision-
making impact- allow the vendor to help improve the software architecture and use best practices
Romanians are SMART and CREATIVE.
Order phase
Engagement Process
Engagement Process
Project phase
Reports as agreed: weekly, monthly, etc. Review meetings: video- web conferences Part deliveries Physical review meetings
Unlike Asian vendors, Romanian companies like to COMMUNICATE.Great at prototyping | Great in finding solutions | Great with technology
BUT ...not so great with MANAGEMENT.
Acceptance phase Check acceptance tests against specifications Freedom to select the location for the handover Define metrics from the beginning. Avoid surprises
Maintenance phaseSupport and maintenance“Dedicated team” or “Time and Material”Romania has great QA engineers
Engagement Process
The Romanian ”essential link”
Full transparency – we know how to say NO Process. Reports and deliveries as agreed. Ongoing communication: more than reporting Direct access to the entire team. We CARE. Personal visits are beneficial
Online project support system Online conferences & meetings Executive management is directly
involved and responsible for the quality and the business
Client DedicatedTeam
United States Partner in the new EU
Outsourcing Models
Your choice:• Time and Material• Dedicated Team• Fixed Price• AGILE
Depending on:• How to Control• Requirements• Responsibility
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• Strategic offshore partner for all software needs: – development, QA, design, even IT infrastructure
• Compatible with “multi-source”
• AGILE specific– Rapid development iterations– Right package of methods, terms, techniques– re-prioritize the project backlog within each iteration, based on business value– „Right-sizing“ the project team
• Technical management done by Provider, offshore• Product management done by YOU
OR.... Strategic Sourcing
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• In case of staff attrition or underperformance, replacement is guaranteed within one sprint
• Financial model: – fixed monthly price is paid per developer or per team– Low financial risk
• Business requirement– long-term, stategic partnership, mutual respect
• Helps your business GROW while optimizing costs and eliminating overhead• Risk on Vendor
OR.... Strategic Sourcing
Dedicated TeamYour own offshore development team
When? The Offer The Romanian context
Dedicated Team – for whom?
Do you manage Large or long IT projects Outsourcing of IT projects Hiring of IT-resources Lack of certain competencies Lack of resources
Businesses with need of larger or longer program development for products or supporting systems
?
The Romanian Offer
The essential link
Dedicated Team Qualified IT resources - PASSION Domain specialists Considerable lower costs One of the strongest business ethics STABILITY
Move to the NEW EUPart of or whole
project
Dedicated Team with Romanian vendors
Choose from probably 100-150 developers based on
their individual CV
How many people does YOUR typical project require?
By Dan Tusaliu
VP of Business Development, IT Six Global Services
Romania and romaniaIT
Adobe Acrobat Document
Quick Company Overview
IT Six Global Servicesby Sorin Gavanescu, CEO
We help your business grow
IT Six Global Services
Offices: Craiova and Bucharest (Romania), Phoenix (USA), Orleans (France)
Partners : USA, Canada, Germany, the Netherlands, France, Austria, Belgium,
Norway
Worldwide spread business: 4 continents, 13 countries
Offshore development centers: Craiova and Bucharest, Romania.
Main business: Software Application Development, QA/Testing Services
Company vision: IT Six is a strategic partner for organizations with an IT
component. We help your business GROW.
Corporate overview
IT Services – six lines of business:
Software Application Development Research & Development Quality Assurance / Testing Design and Usability IT Consultancy Remote Infrastructure Management
Services
Preferred methodology: AGILE | Planned SCRUM
Business expertiseProjects Vertical industries
eGovernment/ eProcurement Portals & Collaboration
3D modelling and simulations
IT Security Telecom
Industry specific app. (e.g. Manufacturing, Retail)
Data protection Intranet projects
Retail Finance & Banking
Business Software IP telephony Manufacturing Network Security solution Reporting Software
Document Management Systems
GIS Transportation
ERP PeopleSoft development Media and Advertising Legacy projects CRM solutions Travel e-Learning Database development Government QA/Testing Engineering
Large Infrastructure Monitoring
Pharmaceutics Leisure
Internal Technical Structure
Recent Client Portfolio
Q & A