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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 option presented by it six global services

IT Outsourcing from USA to Romania An underutilized optionpresented by IT Six Global Services

January 26th 2011

slide2

Speakers

CamilToma

AR-NE

Sorin Gavanescu

CEO, IT Six Global Services, Craiova

Dan Tusaliu

VP of Business Development, IT Six Global Services, Craiova

summary
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 difficulties with it outsourcing

Advantages and Difficultieswith IT outsourcing

Expected outcome:

Savings

Resources

Specialists

50 – 70%

slide5

Advantages and Difficultieswith IT outsourcing

Real outcome:

50 – 70%

40% are disappointed – why?

slide6

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
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?
slide8

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
slide9

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
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
slide11

Engagement Process

Order

Start

Project

Acceptance

Maintenance

Very important phases in an offshore project

slide12

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.
slide13

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.
slide14

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
slide15

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
Outsourcing Models
  • Your choice:
    • Time and Material
    • Dedicated Team
    • Fixed Price
    • AGILE
  • Depending on:
    • How to Control
    • Requirements
    • Responsibility
or strategic sourcing
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
or strategic sourcing1
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
slide19

Dedicated Team

Your own offshore development team

  • When?
  • The Offer
  • The Romanian context
slide20

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

?

slide21

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
slide22

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
Romania and romaniaIT

By Dan Tusaliu

VP of Business Development, IT Six Global Services

quick company overview
Quick Company Overview

IT Six Global Services

by Sorin Gavanescu, CEO

corporate overview
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
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