Software Outsourcing. Realities and Perspectives: Brief Overview

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Slide 1 : Software Outsourcing Realities and Perspectives: Brief Overview www.softheme.com

Slide 2 : www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives Table of Contents Facts About Outsourcing Benefits of Outsourcing Reasons Companies Outsource Future Trends in Outsourcing Outsource Solution

Slide 3 : 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 www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 4 : Benefits of Outsourcing Cost savings Operational expertise Scalability Access to talent Improve quality Cost restructuring Creating leisure time Tax Benefit Enhance capacity for innovation www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 5 : Benefits of Outsourcing 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. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 6 : Benefits of Outsourcing Tax Benefit Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 7 : Benefits of Outsourcing Access to Talent Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 8 : Benefits of Outsourcing Time Work day: 9 a.m. – 6 p.m. Work day: 9 a.m. – 6 p.m. Total: 16 hours a day www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 9 : Reasons Companies Outsource 55% 54% 38% 36% 25% 20% 18% 12% 12% 10% Improve company focus Reduce and control operating costs Free resources Gain access to world-class capabilities Resources not available internally Accelerate reengineering benefits Reduce time to market Take advantage of offshore capabilities Share risks Function difficult to manage or out of control www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 10 : 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. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 11 : Future Trends in Outsourcing 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. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 12 : Future Trends in Outsourcing The globalization of the workforce will continue to emerge and there will be a push to increase the quality of outsourcing skills set. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 13 : 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. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 14 : Outsource Solution www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

Slide 15 : Thank you! 2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions www.softheme.com » Outsourcing to Softheme™ Questions??? → info@softheme.com

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