The webinar discussed outsourcing risks and mitigation strategies. It featured presentations from Tony Mataya on outsourcing risks, Ben Blakewood providing a case study on AgFirst Farm Credit Bank's experience with outsourcing, Prakash Grama on relationship management for outsourcing success, and Naganand Doraswamy on SPAN Systems Corporation. The webinar addressed common outsourcing risks such as alignment with business strategy, return on investment, scalability, and knowledge retention. Success factors included selecting the right vendor, building support from stakeholders, and establishing comprehensive governance.

1. Outsourcing Risk in the New Paradigm and Success Factors
June 4, 2013 12:00 PM- 1:00 PM EDT
Sponsored by: SPAN Systems Corporation
Produced and Presented by: The Outsourcing Institute

2. The Outsourcing Institute
• Located at outsourcing.com – Over 70,000 Executive Members Globally
• Trends, Best Practices, Case Studies
• Training Through OI University
• Specialize in Low Cost Alternatives for Outsourcing Buyers Needing Assistance with RFP
Development and/or Vendor Selection:
– Outsourcing RFP Builder Software
– Matchmaker Service
• Qualified Demand Generation Programs
• Outsourcing Jobs Opportunities and Recruiting Services Through CMS Inc.
• Local, Intimate and Interactive Outsourcing Road Show
• Sponsorship and New Business Development Opportunities & Programs
For more information contact us at:
info@outsourcing.com or 516-279-6850 ext. 712

3. Today’s Speakers
www.spansystems.com 3Copyright: SPAN Systems Corporation
Tony Mataya
Managing Partner
ThinkSolutions
Ben Blakewood
Senior Vice President and Chief Information Officer
AgFirst Farm Credit Bank
Prakash Grama
Co-founder and CEO
SPAN Systems Corporation
Naganand Doraswamy
Co-founder and EVP Engineering
SPAN Infotech (India) Pvt. Ltd.

4. Agenda
Outsourcing Risks and Mitigation Steps
Customer/Buyer Perspectives with
Case Study
Relationship Management
www.spansystems.com 4Copyright: SPAN Systems Corporation
Q&A

5. Outsourcing Risks and Mitigation…
Associated Risk in
Outsourcing
Mitigation Steps
www.spansystems.com 5Copyright: SPAN Systems Corporation
Relationship Management Most critical success factor. Avoid Order Takers.
Vendor should need your business.
Outsourcing objective not aligned with
Business Strategy
Do it for the right reasons. Get Buy-ins from
all stakeholders.
ROI
Set right expectations with costs and returns.
Establish all costs related to vendor management and
governance. What is the cost of failure? What is the
cost of innovation? What is the skin in
the game for the vendor? Is the onsite/offsite ratio
right in blended rates.

6. Outsourcing Risks and Mitigation…
Associated Risk in
Outsourcing
Scalability
Vendors Legal Terms
Right size Vendor, Flexible Ramp - Up/Down keeping
core team in place. Grow at the speed of your market.
U.S. Incorporated Vendor, IPR, Confidentiality,
Limitation of Liability.
Mitigation Steps
Ability to work as Strategic Partners Multi source capability, Proof of capability,
Attrition rate, Cultural alignment, Value creation.
www.spansystems.com 6Copyright: SPAN Systems Corporation

7. Outsourcing Risks and Mitigation
Associated Risk in
Outsourcing
IP Protection
Is Vendor in IP Business along with services; How do
they work with your Competitors.
Mitigation Steps
www.spansystems.com 7Copyright: SPAN Systems Corporation
Governance Models/ Contracts - SLA/OLA,
Vendor dependence Security, Privacy,
Exit Mechanism
Review and Set Governance Models and OLA in
contract in addition to SLA.
Quality Certifications, Process Maturity, Practice.
Value Creation
Understand your business, your customer, and your
market and be proactive in giving suggestions
for improvements.

8. Outsourcing Risks and Mitigation
Associated Risk in
Outsourcing
Mitigation Steps
Service Transition, Delivery & Post
Transition Management
Establish the right KT. Invest heavily in
communication initially. Use Shadowing
and Benchmarking.
www.spansystems.com 8Copyright: SPAN Systems Corporation
Visibility of status Reporting Mechanisms. Tools, Transparency.
Knowledge retention and Management
Employee retention and Tools for knowledge
management. Cross Pollination.

9. Competency Pyramid
• The Playing Field of Offshore
Companies narrows as you go
up the Pyramid.
• Domain specialization ensures
value addition and productivity.
• Internal Process should be
matured and consistent
• Technology Expertise is a
minimum Qualification.
www.spansystems.com 9Copyright: SPAN Systems Corporation

10. AgFirst Farm Credit

11. AgFirst Farm Credit Bank
• $28 Billion
• 19 Cooperatives
AgFirst Farm Credit - June 2013 11

12. Offshore Proof of Concept
• June 2006 with SPAN
• Business Case:
– Mission critical, mature in-house written loan origination
with large VB6 code footprint.
– Due to other strategic priorities, difficulty keeping up with
small changes, maintenance requests from business users.
– Needed a cost effective way to maintain systems and be
agile in meeting customer needs.
AgFirst Farm Credit - June 2013 12

13. Due Diligence for POC
• Reviewed POC proposal with all key internal
stakeholders: Business Users, Internal Audit, and
Executive Committee.
• Utilized Gartner Group Research.
• Vendor reference calls.
AgFirst Farm Credit - June 2013 13

14. Results of POC
• SPAN was able to quickly get up to speed learning
the legacy system.
• Eliminated the technical resource bottleneck to
getting work done.
• Had strong business user support for offshoring
after POC.
AgFirst Farm Credit - June 2013 14

15. How we use offshoring today
• Balance of offsite and onsite resources
- 20% onsite,
- 80% offsite
• Assigned to:
– SQL report development.
– Application maintenance.
– Patch/verification testing.
– Security consulting.
– Mobile development.
AgFirst Farm Credit - June 2013 15

16. Benefits
• Deep bench for technical resources. The ability to
quickly scale up and scale down adds tremendously to
enterprise agility and flexibility.
• Follow-the-sun development. Passing work offshore at
the end of day and having it ready the next morning
speeds development cycles.
• Value added services. Testing, security, and mobile
development.
• Managing key developer risk. Offshore companies are
very adept at documenting systems so they can be
handed off/supported by others.
AgFirst Farm Credit - June 2013 16

17. Keys to Success
• Select a vendor that:
– Matches your size. You don’t want to be a very small fish
in a large pond.
– Has ISO security certifications.
• Build business user support. Business users should
experience direct benefits and be your strongest
advocates.
• Manage staff fears.
• Incent technical managers to use offshoring services.
• Ensure comprehensive governance is in place with
internal security teams and the project management
office.
AgFirst Farm Credit - June 2013 17

18. Keys to Success (Continued)
• Knowledge transfer. Require resources to
come onsite for knowledge transfer.
• Established, long-term engagement. Have
permanent onsite resources from the vendor
to help with the coordination of offsite
resources.
AgFirst Farm Credit - June 2013 18

19. Relationship Management
www.spansystems.com 19Copyright: SPAN Systems Corporation

20. SPAN Systems Corporation
www.spansystems.com 20
U.S. ‘C’ Corporation 1993 incorporated
Wholly owned by EVRY (www.evry.com), a $2.3 Billion Nordic company
Ranked #7 Best IT Places to Work For in India; Historically low attrition
CMMI5, ISO 9001 and ISO 27001 certifications
Strong Relationship Management
Customers range from Fortune 5 to SMEs
Copyright: SPAN Systems Corporation

21. www.spansystems.com
SPAN Overview
Processes
Client
Engagement
Stability
Domain
Technology
SPAN
An EVRY Company
• Almost Two decades in IT solution
providing
• Part of US $2.3 Billion Norwegian
company & 10,000+ employees
• #7 in Best Employer in India
• Insurance &
Healthcare
• Banking & Finance
• Retail
• Independent
Software Vendors
• Microsoft – Silver web development
partner
• Oracle – Platinum Partner
• DW/BI
• Java & other open source
• ERP
• Enterprise Mobility
• Relationship Model
– Management
focus
– Governance team
• Innovative Pricing
• Tailored Business
Models
• Offshore Centers
Certified
– CMMI 5
– ISO 9001:2008
– ISO 27001: 2005
21Copyright: SPAN Systems Corporation

22. www.spansystems.com 22Copyright: SPAN Systems Corporation
Tony Mataya
Managing Partner
ThinkSolutions
tony.mataya@thinksolutions.net
Ben Blakewood
Senior Vice President and Chief Information Officer
AgFirst Farm Credit Bank
bblakewood@agfirst.com
Prakash Grama
Co-founder and CEO
SPAN Systems Corporation
prakash@spansystems.com
Naganand Doraswamy
Co-founder and EVP Engineering
SPAN Infotech (India) Pvt. Ltd.
naganand@spanservices.com
Questions

23. Thank you for joining
Outsourcing Risk in the New Paradigm and
Success Factors
This webinar was sponsored by SPAN Systems Corporation in conjunction with
The Outsourcing Institute.
Tony Mataya
Managing Partner
ThinkSolutions
Ben Blakewood
Senior Vice President and Chief
Information Officer
AgFirst Farm Credit Bank
Prakash Grama
Co-founder and CEO
SPAN Systems Corporation
Naganand Doraswamy
Co-founder and EVP Engineering
SPAN Infotech (India) Pvt. Ltd.