Introducing s/w offshore outsourcing concepts to executive management

1. Introducing Offshore Concepts Executive Briefing. Nick Krym, 02-07-2006

2. Good Reasons for Going Offshore

3. ‘ 06 Application and Service Expansion Feature Set 11 Feature Set 10 Feature Set 9 Feature Set 1 Feature Set 2 Feature Set 3 Feature Set 4 Feature Set 5 Feature Set 6 Feature Set 7 Feature Set 8 Q1 - Q2 Q2 - Q3 Q3 - Q4

13. Top IT offshore resource producers: capacity $14,000.00 $19,000.00 $35,000.00 $11,000.00 $17,000.00 $9,500.00 $13,000.00 Salary “rumors” for IT professionals in ($US) 2005 N/A $7,200 78,000 $1,900 Ukraine 450,00 43,200 137,000 380,000 950,000 2,100,000 Total Number of college graduates in 2001 $7,500 $29,000 $7,400 $6,565 $8,952 $5,880 Average Cost of IT resources a year in 2001 N/A $2,000 Russia 23,000 $19,500 Ireland N/A $1,400 Mexico 290,000 $2,900 Philippines 200,000 $2,000 China 415,000 $2,400 India Estimated number of IT employees in 2001 Average Salary of college graduate ($US) in 2001 Country

14. Top IT offshore resource producers: risks Low Low Fair Fair Fair Challenging Poor to good Ukraine Moderate Low Fair Fair Moderate Challenging Poor to good Russia Poor to good Good Good Poor to good Poor to good Infrastructure Poor Poor Good Moderate Challenging Operating Environment Moderate Poor Moderate High Moderate Skills Availability Fair Good Good Good Poor Cultural Compatibility Good Good Good Good Poor English Skills Moderate Moderate Philippines High High Mexico High Moderate Ireland Moderate Moderate India Low Moderate China Cost Political Climate Country

15. Top IT offshore resource producers: outlook Med – High Med Med Med Low Low – Med Ukraine Med – High Med – High Med Low – Med Low – Med Low – High Russia Low – Med Med Med Med – High Low – Med Resource Turn Around Low Low Low High Med Local Presence Low – Med Low – Med Med Med – High Low – Med Account Management Med Low – Med Med – High Med – High Low – High Project Management Med – High Low Med Med – High Low – Med Access to Relevant Development Skills Med Philippines Low Mexico Low Ireland Med – High India Med – High China General Fit as a Partner Country

16. Example of Salary rumors – Neusoft, Inc.