Software Outsourcing: Realities and Perspectives. Brief Overview.

Software Outsourcing
Realities and Perspectives:

Brief Overview
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Table of Contents
 Facts About Outsourcing
 Benefits of Outsourcing
 Reasons Companies Outsource
 Future Trends in Outsourcing
 Outsource Solution
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Softheme: Software
Outsourcing Realities
Realities and
and Perspectives
Perspectives
Facts about Outsourcing
 When the idea of outsourcing was first brought in, in the 1970s, it
was only the manufacturing companies that contracted out their
job functions
 One in 5 UK workers at risk from outsourcing have difficulties

reading and writing. The UK struggles to turn out just 8,000 IT
graduates a year
 Future economic growth depends on new generations of creative,

dynamic entrepreneurs, with good access to venture capital, who
will drive national economies through transition
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Realities and
and Perspectives
Perspectives
Benefits of Outsourcing
Operational Access Cost
expertise to talent restructuring
Improve
Cost savings Scalability
quality
Enhance
Creating
Tax Benefit capacity for
leisure time
innovation
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Softheme: Software
Realities and
and Perspectives
Perspectives
Cost savings
The lowering of the overall cost of the service to the business.
This will involve reducing the scope, defining quality levels, re-
pricing, re-negotiation, cost re-structuring. Access to lower
cost economies through offshoring called "labor arbitrage"
generated by the wage gap between industrialized and
developing nations.
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Realities and
and Perspectives
Perspectives
Tax Benefit
Countries offer tax incentives to move manufacturing
operations to counter high corporate taxes within another
country.
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Softheme: Software
Realities and
and Perspectives
Perspectives
Access to Talent
Access to a larger talent pool and a sustainable source of
skills, in particular in science and engineering.
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Outsourcing to
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Softheme: Software
Realities and
and Perspectives
Perspectives
Time
Work day: Work day:

9 a.m. – 6 p.m. USA Ukraine 9 a.m. – 6 p.m.
Total: 16 hours a day

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Outsourcing to
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Softheme: Software
Realities and
and Perspectives
Perspectives
Reasons Companies Outsource
Improve company focus 55%
Reduce and control operating costs 54%
Free resources 38%

Gain access to world-class capabilities 36%
Resources not available internally 25%
Accelerate reengineering benefits 20%
Reduce time to market 18%
Share risks 12%
Take advantage of offshore capabilities 12%

Function difficult to manage or out of control 10%
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Outsourcing to
to Softheme™
Softheme: Software
Realities and
and Perspectives
Perspectives
Future Trends in Outsourcing
India and China resort to more skill-oriented outsourcing, the
questions that the United States would increasingly need to ask is:
why should a software guy with the same qualifications be paid
more in the US, when there is a similar guy in India willing to do the
same job at one-fourth the cost.
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Realities and
and Perspectives
Perspectives
Outsourcing is continuously expanding when it comes to
vertical industry reach as well as geographic scope. Best-shoring is
now considered the best emerging strategy for outsourcing
business.
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Realities and
and Perspectives
Perspectives
The globalization of the workforce will continue to emerge
and there will be a push to increase the quality of outsourcing skills
set.
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Realities and
and Perspectives
Perspectives
Future Trends In Outsourcing
Management challenges will become more pressing as the
increase in global salaries dissipate the easy cost gains from
offshore outsourcing. Furthermore, the successful companies in the
future will be those that take advantage of global talent to help
transform the company and their industry while still providing jobs
for everyone.
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Outsourcing to
to Softheme™
Softheme: Software
Realities and
and Perspectives
Perspectives
Outsource Solution
Market
research
Assessment
centre design
and Campus
implementation branding
Total
Outsourc
e Solution
Application
process and
Process
initial screening design
Candidate
sourcing
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Outsourcing to
to Softheme™
Softheme: Software
Realities and
and Perspectives
Perspectives
Thank you!
Questions??? → info@softheme.com
2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions
www.softheme.com
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Software Outsourcing: Realities and Perspectives. Brief Overview.

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Software Outsourcing

Realities and Perspectives:

 One in 5 UK workers at risk from outsourcing have difficulties

 Future economic growth depends on new generations of creative,

Work day: Work day:

Total: 16 hours a day

Reduce and control operating costs 54%

Free resources 38%

Resources not available internally 25%

Accelerate reengineering benefits 20%

Reduce time to market 18%

Share risks 12%

Take advantage of offshore capabilities 12%

2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions

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