Leveraging Offshore Software Services

1. Leveraging Offshore Software Services A Guide For Smaller Companies September 5, 2007 www.synerzip.com

2. About Us (Synerzip in a Nut-shell) • Offshore software development partner for small/mid-sized technology companies • Focus: A/B round funded technology start-ups • Deep experience in product development and testing • Full software development life cycle • Flexible engagement models: Fixed-Price OR Dedicated-Team • Actually reduces risk of development/delivery • Experienced management team • Light-weight but robust Agile process • Reduces cost – dual shore team providing 50% cost advantage • Offers long term flexibility – allows (facilitates) taking offshore team captive Confidential

3. Experienced Team Team of seasoned professionals with extensive experience in offshore software Product Development • Hemant Elhence, Chief Executive Officer • Co-founder & COO of ECMi, venture funded software product company • Product-line VP at i2 – managed product portfolio with multiple offshore teams • Manager at McKinsey & Co, Consultant at TRG • Software engineer at Digital Equipment Corporation • BSEE IIT Delhi, MSEE Univ. of Massachusetts, MBA Univ. of Chicago • Vinayak Joglekar, EVP & Chief Technology Officer • Co-founder & CTO of ECMi, lead offshore (India) development center • 22+ years experience in software architecture design & product development, has built and mentored 100+ teams, hired 1000+ software professionals • Successfully delivered off-shore software projects for 20+ companies incl. Alfa-Laval, First Guarantty, Cyberdrawer, etc. • BSME IIT Bombay, MBA IIM Calcutta Confidential

4. Our Clients Confidential

5. Common Myths • Only large companies/teams can leverage the offshore advantage • Engaging with an offshore team means a significant IP risk • To be considered for offshoring, a project needs to have completely detailed software requirements and design • You can easily engage an offshore development team at 1/10th the cost • To get the work started and offshore team productive need significant commitment and involvement from local team • It is complex to make the distributed/offshore team processes – source code control, issue tracking, etc - to work via VPN etc. • Agile development model doesn’t work with offshore teams • Agile model cannot be used with a “fixed-price” project FALSE FALSE FALSE FALSE TRUE FALSE FALSE FALSE Confidential

6. < 3 FTEs > 20 FTEs Tough – need to interview 20 to find one good Easily available Ad-hoc – no written req doc, fluid release mgmt, no QA Disciplined – well defined, waterfall or Agile Missing engg leadership, only business savy mgmt Seasoned VP of Engg with next level team Insular and insecure Open minded, healthy “global” view Is Offshore For You? • Scale: size of software team, incl dev, maint, QA • Talent Availability: how easy is it to find good software talent locally? • Engineering Discipline: how disciplined is you in-house dev and delivery process? • Engineering Leadership: do you have a seasoned “VP of Engineering”? • Company Culture: healthy attitude and willingness to accept “global” talent Confidential

7. Mindset: The World is Flat • An offshore operation will provide you a long-term structural competitive advantage • But, it is a bumpy road initially, in spite of best efforts, plan to hit a few bumps along the way • The important thing is to… • Embrace offshore with a healthy attitude and spirit • Do it with required long-term commitment and planning • Follow good management hygiene of learning from mistakes & good communications • Remember, it is very easy to make the offshore effort fail!! Confidential

8. Basic Principles • Start small – say 4 to 12 man-month well defined “project” • Match offshore team composition with needed work content – hire heavy hitters for challenging work and vice-versa • Ensure proper infrastructure set-up for distributed development – source code control, VPN, wiki, etc. • Follow management hygiene • Over communicate (docs, email, wiki, video-conf, skype, etc.) • Over compensate for project mgmt • Define success criteria & track (results oriented metrics, avoid counting hours!) • Clear management ownership with aligned incentives on your team • Learning cycles • Treat offshore team as “your” team • Maintain continuity of work & team • Get started with a partner, but preserve the right for own captive operation later Confidential

9. We spend time upfront to understand the work content • We assign a dedicated team, with direct involvement from client • Client responsible for work content planning and delivery • For the first 3-4 months we actively manage to ensure smooth start-up • Client retains option to “buy their dedicated team” anytime they want • Client project is reasonably well defined and “independent” • We spend time upfront to understand the work content • We scope the work – resources, time, $$, and assign team • We deliver using “Incrementally Priced Agile” • All scope changes negotiated along the way in good faith Pick the Right Model “Fixed Price Project” “Dedicated Team” • Projects need to be well defined and independent • Will still require client team’s ongoing involvement • Client needs to have engineering leadership • Client needs to have long-term interest Confidential

10. Formal Project Kick-off Fixed Price Project Confidential

11. Gradual, 2-Step Transfer TRANSFER TRANSFER 5 BUILD 4 20+ FTE Client’s India Operation 3 ~15 FTE Client Team Hosted @Synerzip 8-12 FTEs 5 to 8 FTEs 2 Start of Offshore Engagement with Synerzip (3-5 FTEs) 1 Build Dedicated Team 20 15 Offshore Team Size 10 5 6 12 18 24 Engagement Time (months) Confidential

12. Contact Information • Hemant Elhence (Dallas based) • hemant@synerzip.com • Office Phone: 469.322.0349 • Cell Phone: 214.762.4873 • www.synerzip.com Confidential