Flexisource IT Business Model

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What do I need to know?

Why ‘Flexisourcing’ in the Philippines?

Most common Traditional IT Outsourcing Models in the Philippines

IT Consulting – focuses on advising organizations on how best to use IT in achieving their business objectives. In addition to providing advice, IT consultancies often estimate, manage, implement, deploy, and administer IT systems on behalf of their client organizations – a practice known as ‘outsourcing.’

IT-enabled Services Offshoring – relocation of a business process from one country to another. Recently, offshoring has been associated primarily with the outsourcing of technical and administrative services (i.e. Bug Fixing, DBA, Network Admin, etc).

Project-based Software Development – companies to, occasionally, offer an opportunity for different vendors to bid to provide costs, timeline, number of resources, and others for a fixed cost which may or may not include knowledge transfers and other documentation.

Odesk/Freelancers – hiring IT professionals through these avenues based on per-hour basis but may not be dedicated full time to the project.

Cost Implications

IT Consulting – Costs will vary and may be implemented PER area according to following functions:o Prototypeo Project Management and Business Analysiso Developmento QAo Production Deployment and Maintenanceo Documentationo Some vendors offer costing PER SPRINT (1-3 weeks work)

IT-enabled Services Offshoring – most common is to charge PER resource depending on skillsets required, normally in a form of number of FTEs (Full-time Equivalent) or SLA (Service Level Agreement).

Project-based Software Development – can be practical to some simple projects but normally, separate costs are billed for those out-of-scope.

Odesk/Freelancers – can be practical too and cheap but most of the time, they are taking other projects as well and maybe risky when it comes to intellectual property. Reviews online can also say more about this approach.

Why FLEXISOURCING?Flexisourcing was founded as of by Richard Gross as of 2011 EOFY due to the rising need of IT labor force in Australia and because of the trending issues and concerns that most businesses encounter on traditional outsourcing models. As an overview, Flexisource IT does the following:

o Our company wants to work with the client as a business partner, not as an outsourcer;o Aims to to build a long-term sustainable partnership to address costs, infrastructure and difficulties in finding

the right resource;o To substantially reduce dependency on high priced consultants and have dedicated staff who maintains

client’s business knowledge and can document and maintain that “in-house”o We don’t want to take over the business’ IP and other processes;o We adapt to your methodologies (including time zone);o We provide free assistance of a critical-thinking Project Managers/Supervisors to help oversee and

coordinate; o We run Agile;o We discuss and understand the E2E or business’s desired outcomes prior recruitment;o We have a dedicated DDI-trained recruiters to select those candidates for the business;o Business owners/stakeholders can select their own candidates;o Billing is based on monthly rate (as if you are paying a salary of an employee but just located offshore) with

a minimum 6 months to 1 year engagement. Resource cost savings is 50% to 70% due to higher labor cost in Australia compared to the Philippines***

*** References: http://au.hudson.com/latest-thinking/salary-guides , http://www.roberthalf.com.au/salary-guides , http://www.jobstreet.com.ph/career-resources/jobstreet-com-annual-salary-report-2015#. Vd380dOqqkp

Common Challenges Encountered

• Labor Costs – IT professionals in Australia (even UK and US) can be lessened by 50 to 70% in the Philippines. Some may appear the same for very highly skilled professionals.

• Australian counterparts no longer have space in their offices for more developers – Flexisource IT main operations is based in Makati, Philippines where a dedicated resource will be provided and shouldered by Flexisource IT their equipment, 2 fibre optic internet lines with 100% backup, HMO and Accident Insurance, bi-monthly salary, 13th month pay and other statutory contributions to the government. They are overseen and managed by a manager/supervisor to coordinate with Australian counterparts regularly and even attend standups and sprint planning.

• Visibility/Transparency Concerns – a daily or weekly status reports are regularly sent (on top of deliverables shown in project management tools such as JIRA). Issues are captured real-time as we run Agile. The company also has CCTVs which client can access through the cloud should they want to check their people.

• Cost Concerns – We work according to your budget and provide real-time reports on what’s available in the market. We may have to offer available resources in-house with prorated rates – depending on complexity of the project. All engagement’s cost model is an All-In per month basis.

• Infrastructure and Architecture – We simply do the heavy lifting and leave the major decisions on Infrastructure and Architecture to the clients, however, we constantly provide suggestions and recommendations whenever applicable.

• Access – All of dedicated resources are given access by client’s environment. Most of the time, a dedicated team or resource will have their own counterpart (a go-to-person or point-of-contact from the client’s end) as best practice for peer or buddy programming.

• Upscaling or Downsizing – Flexisource IT model is very dynamic and scalable as it is dependent based on business requirements – we can increase or decrease your team size depending on your needs. An advance notice of 30days is required for downsizing.

Summary• Flexisource IT is your B2B business partner, not an outsourcer.

• We study your business needs and challenges, understand the end-to-end processes, analyse the technical aspect, and activate recruitment efforts once clarified. We don’t work based on time and materials.

• Clients get to choose their dedicated team/s.

• Engagement is flexible, scalable and dynamic according to business needs.

• We take care of your dedicated resource’s equipment*, fiber internet connection with 100% backup, bi-monthly salary, HMO,, and other benefits – Clients will need to pay all-in monthly costs + GST with 21-day payment terms. Invoices are sent every 1 st of the month.

• Flexisource IT =facility has 24/7 CCTV accessible through cloud should client wants visibility

• Managed and controlled security protocols to ensure no data is compromised or exposed to unauthorized people.

• Chosen Philippines as the main operations for development. Reference: http://outsourceworkers.com.au/trend-spotting-predictions-philippines-outsourcing-industry-2015/

• We work closely with counterparts to ensure calibration to align with each of the client’s unique needs and business objectives

Thank You