3. Key Facts
Total Revenue Fiscal 2013 - $2.2 billion
Number of Employees - ~ 6,000
Countries - 120
Patents - 205
Partners - 500
Customers - 20,000
4.
5. ** *
**
R&D – some product lines over 80% in India
Issue – Risk of India Too High
Solution - Diversification
Development Centers (2010) – US, UK, Israel and India
6. Industry Research on Outsourcing
Gartner
Forrester
And more…
Known Vendors
Top Outsourcing companies
Industry Friends and Family
Industry Friends and Family
Steps to Build Criteria for Where to Go
7. Top 10 Decision Criteria from Gartner
*Gartner Research Oct. 2010 Offshore Services Analysis
Language
Government Support
Labor Pool
Infrastructure
Educational System
Cost
Political and Economic
Environment
Cultural Compatibility
Global and Legal Maturity
Data and Intellectual Property
Security and Privacy
8. And Then I Added More…
Travel Accessibility (VISA)
Timezone
Market (Sales Opportunity)
Attrition Rates
Salary Inflation
Experience in the Region
References
9. Now Where to Go – Top 4 Finalists
Eastern Europe
Asia
South America
US On-Shore
….
10. Decision Criteria and Rankings
Argentina China Russia Ukraine
Gartner Criteria Ratings Weight Raw Weighted Raw Weighted Raw Weighted Raw Weighted
Language 3 3 9 3 9 3 9 4 12
Government support 1 3 3 7 7 3 3 1 1
Labor pool 5 3 15 5 25 5 25 4 20
Infrastructure 1 3 3 7 7 3 3 1 1
Educational system 3 3 9 5 15 5 15 5 15
Cost 5 5 25 5 25 3 15 5 25
Political and economic environment 1 3 3 7 7 1 1 1 1
Cultural compatibility 3 5 15 5 15 5 15 3 9
Global and legal maturity 3 3 9 3 9 3 9 3 9
Data and intellectual property security and
privacy 3 1 3 1 3 3 9 1 3
Total Gartner Score 32 94 48 122 34 104 28 96
Additional Criteria
Travel Accessability 1 5 5 1 1 3 3 5 5
Timezone 3 7 21 1 3 5 15 5 15
Market (Sales Opportunity) 3 3 9 7 21 3 9 3 9
Attrition Rates 3 5 15 3 9 5 15 7 21
Salary Inflation 3 3 9 3 9 3 9 5 15
Experience in Region 3 3 9 1 3 1 3 10 30
References 3 3 9 3 9 5 15 10 30
Total Score 29 77 19 55 25 69 45 125
Total Score 61 171 67 177 59 173 73 221
11. And the Winner….
China Almost Won!
1. Labor Pool
2. Cost
3. Education System
4. Language
5. References
6. Attrition
7. Timezone
8. Experience
12. Final Validation
Business Risks (2010) Threat Level Future Indicator
Political Stability High Improving
Economic High Improving
Infrastructure Medium Improving
Business and Regulatory Environment High Improving
Corruption High Continued
Labor Low Continued
Security – Terrorism Low Continued
Security – Crime Medium Continued
Future Environment Medium Improving
References
3rd Party Risk Validation
13. Final Decision – Partnership or Captive?
Risk Mitigation Strategy with Partner Model
IP Assignment
Compliance/Ethics Policy
Information Security Policy
Oversight
Code Reviews
10 Criteria for Contract
Multi-year Contract
Build, Operate and Transfer
Defined Cost Increases
Termination Clause
SLAs with Penalties