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IT Outsourcing from USA to Romania An underutilized option presented by IT Six Global Services. January 26 th 2011. Speakers. Camil Toma AR-NE Sorin Gavanescu CEO, IT Six Global Services, Craiova Dan Tusaliu VP of Business Development, IT Six Global Services, Craiova. Summary.
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IT Outsourcing from USA to Romania An underutilized optionpresented by IT Six Global Services January 26th 2011
Speakers CamilToma AR-NE Sorin Gavanescu CEO, IT Six Global Services, Craiova Dan Tusaliu VP of Business Development, IT Six Global Services, Craiova
Summary • Welcome note by CamilToma, 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 Expected outcome: Savings Resources Specialists 50 – 70%
Advantages and Difficultieswith IT outsourcing Real outcome: 50 – 70% 40% are disappointed – why?
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
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?
Do I dare to Outsource? YES Offshoring to... Romania! • General • Inexperienced buyer • Learn from others mistakes • Wrong Outsourcing Model • Choose the model that fits • Communication problems • Establish the “essential link” • Offshore • Culture/language • Romania • better than rumours • excellent English • Distance • 7hrs from Boston • Local representation • Legal aspects • US law, NATO country
A Little Bit of History 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 theAcademy 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)
Helping the client beyond building software • 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
Engagement Process Order Start Project Acceptance Maintenance Very important phases in an offshore project
Engagement Process Order phase • 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.
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.
Engagement Process Acceptance phase • Check acceptance tests against specifications • Freedom to select the location for the handover • Define metrics from the beginning. Avoid surprises Maintenance phase • Support and maintenance • “Dedicated team” or “Time and Material” • Romania has great QA engineers
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 visitsare beneficial Dedicated Team Client • Online project support system • Online conferences & meetings • Executive management is directly involved and responsible for the quality and the business Partner in the new EU United States
Outsourcing Models • Your choice: • Time and Material • Dedicated Team • Fixed Price • AGILE • Depending on: • How to Control • Requirements • Responsibility
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
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 Team Your own offshore development team • When? • The Offer • The Romanian context
Dedicated Team – for whom? Businesses with need of larger or longer program development for products or supporting systems Do you manage • Large or long IT projects • Outsourcing of IT projects • Hiring of IT-resources • Lack of certain competencies • Lack of resources ?
The Romanian Offer Move to the NEW EU Part of or whole project The essential link • Dedicated Team • Qualified IT resources - PASSION • Domain specialists • Considerable lower costs • One of the strongest business ethics • STABILITY
Dedicated Team with Romanian vendors Choose from probably 100-150 developers based on their individual CV How many people does YOUR typical project require?
Romania and romaniaIT By Dan Tusaliu VP of Business Development, IT Six Global Services
Quick Company Overview IT Six Global Services by Sorin Gavanescu, CEO
We help your business grow IT Six Global Services
Corporate overview • 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.
Services Preferred methodology: AGILE | Planned SCRUM IT Services – six lines of business: • Software Application Development • Research & Development • Quality Assurance / Testing • Design and Usability • IT Consultancy • Remote Infrastructure Management