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

17

• 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