PORTUGAL AS AN ICT PLATFORM FOR EUROPE

Transcription

1 PORTUGAL AS AN ICT PLATFORM FOR EUROPE Arthur C. Clarke's Law of Revolutionary Ideas Every revolutionary idea seems to evoke three stages of reaction. They may be summed up by the phrases: (1) "It's completely impossible don't waste my time"; (2) "It's possible, but it's not worth doing"; (3) "I said it was a good idea all along." January 2015 Célia Reis (celia.reis@altran.com)

2 Itens to Discuss A. Outsourcing Technological Services Some Key definitions Main Drivers The Opportunity The European Market Context Why Nearshore vs. Offshore? B. Portugal as an ICT Nearshore Platform Why Portugal? Altran Nearshore Platform in Portugal C. Partnership with Portuguese Government Portugal Direct Incentives to Job Creation D. Altran in a Glimpse

3 Outsourcing Technological Services Some Key definitions Information technology outsourcing or ITO describes the practice of seeking resources -- or subcontracting -- outside of an organizational structure for all or part of an IT (Information Technology) function. An organization would use IT outsourcing for functions ranging from infrastructure to software development, maintenance and support. Nearshore Outsourcing is the practice of getting work done or services performed by people in neighboring countries rather than in your own country. Offshore Outsourcing. Language barriers. Cultural differences. Service breakdowns. Unexpected costs associated with doing business halfway around the world. These are just a few of the problems that have plagued the outsourcing of IT services to offshore entities. 3

4 Outsourcing Technological Services Main Drivers Reduce and control operating costs. Improve company focus Gain access to exceptional capabilities. Free internal resources for other purposes. Resources are not available internally. Maximize restructuring benefits. 4

5 Value accretion Outsourcing Technological Services The Opportunity BPM trends Technology catalyzes the next wave of value accretion in outsourcing initiatives ALTRAN FOCUS Process excellence Technology catalyzed Software R&D (Outsourcing Software Development) ITO Information Technology Outsourcing Scale & labor arbitrage Industry Maturity

6 Outsourcing Technological Services The European Market Context IT investments will be largely driven by rapid diffusion of mobile devices, apps, cloud services and other new delivery models. Significant growth is foreseen for big data applications and services through to Main Forecast scenario imply modest job growth of 100,000 until 2015, with a structural shortage of 509,000 caused by lack of available talent. It also suggests that 509,000 jobs could be created if the skills were available. Bottlenecks are largest in the UK, Germany, and Italy - which together would account 60% of all vacancies in Europe.

7 Outsourcing Technological Services Why Nearshore vs. Offshore? Offshore s main assurance is to cut costs up to 40% whilst delivering quality, but over 50% of companies fail to realise any benefits when offshoring! Realised Cost Savings Main Offshoring Root Failures % Increase in cost 25% No savings 31% 0-20% savings 11% 21-40% savings 4% 41-60% savings 1% 61% savings 28% 21% 9% 15% 3% 14% 10% Miscommunications and culture Other Client team moral and support Wrong answer IT Managers are more satisfied with their outsourcing experiences closer to home than with overseas initiatives*. Offshoring Nearshoring Satisfaction index 0% 20% 40% 60% 80% 100% 7 * Source: The Black Book for Outsourcing, Brown-Wilson Group

8 Portugal as an ICT Nearshore Platform Why Portugal? Cost minimization Improved responsiveness and time-to-market Increased flexibility to meet demand fluctuations Quality of Overall Infrastructure Multilingual capabilities Geographic Proximity Excellent profile of Engineers 8

9 9 Altran Nearshore Centre Fundão, Portugal

10 Portugal as an ICT Nearshore Platform Altran Nearshore Platform in Portugal Global Delivery with Local Know-how and Support through specialized Nearshore Competence and Delivery Centers, providing high technical and functional skills joint with world-class level of operational excellence through process industrialization, methodologies and best-practices. Nearshore Center location Fundão, Portugal 6000 m 2 Workstations secured project rooms 10 Presentation Video

11 Portugal as an ICT Nearshore Platform Altran Nearshore Platform in Portugal Opportunity to convert unemployed young engineers Selection Technical Training Complementary Training Evaluation Integration 11 - Application - RH Interview - Tech Interview - Selection - Intensive Training Program - 8h/day - Java - Java EE -.Net - Tests - PL-SQL - SAP - Others - Intensive Training Program - 8h/day - Langues (FR) - Soft Skills - Creative Thinking - IDI - Innovation - On Job Training with Pilot Project Industrialized Academies are critical to meet GAP between University training and professional World. They also contribute to convert unemployed people with certified training. They are necessary also to guarantee right level of skills available in the Portuguese Market to meet demand - Real Project Integration Cooperation between Companies and Universities for Juniors Cooperation with IEFP for unemployed people Develop Critical Mass of necessary Technical Profiles

12 Partnership with Portuguese Government Portugal Direct Incentives to Job Creation Eligibility criteria Number Employees Growth and Exports Activities Subvention Process Gains Gains Duration Targeted Consultants Profile Trainees Subvention 650 /month/consultant 12 months Junior s 1st JOB Subvention Exoneration social security 23,75% 36 months Junior s + unemployed Unemployment Subvention 419 /month/consultant 6 months unemployed COMPETE Specific Contract According with regime in place Being reviewed All Profiles Training Subvention 20% - 60% of investment Relevant Training Cost, considering it can include Certified Training According with training plan (3-6 months) All Profiles Specific regional subventions Offices renting costs benefits Negotiable ALL Corporate Tax Reduction 23% in 2014 and 21% in 2015 and 19% in 2016

13 An identity Altran is an international group and global leader in innovation consulting and advanced engineering M REVENUE en % ACTIVITY International 500+ CLIENTS worldwide EMPLOYEES Presence in 20 countries Proximity Relation Europe Amériques Asie

14 Altran, partner of key players in key markets. Our services Aerospace, Defense & Railway Energy, Utilities, Industry & Life Sciences Automotive, Infrastructure & Transportation Telecoms & Media Financial Services & Public sector A range of products and services developed by the practices "Industries" and "Solutions both locally and internationally. 27% 22% 20% 18% 11% Our solutions cover 4 major technological areas: Lifecycle Experience Intelligent Systems Information Systems Mechanical Engineering 14 Breakdown of turnover by sector as % of sales

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