KEY CRITERIA TO SELECT AN IT SERVICES PROVIDER IN ASIA

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1 KEY CRITERIA TO SELECT AN IT SERVICES PROVIDER IN ASIA (a step-by-step methodology anyone can use) Eurosia IT Insight #6

2 FIRST QUESTION: WHAT ARE THE FEATURES OF AN APPROPRIATE ASIA-BASED PARTNER? There are numerous examples of failed relationships and disappointed companies and vendors because companies have been too eager to quickly choose a vendor and start the outsourcing process. Booz & Company, Baker & McKenzie Engineering Design Services Outsourcing"

3 #1: FAIR EMPLOYEE COMPENSATION & TREATMENT Comparative Wages in Asia Legal Minimum Daily Wage Country Daily Wage ($USD) Cambodia 2.03 to 2.05 China (Shanghai) 4.00 to 7.90 Hong Kong Indonesia (Jakarta) 2.95 to 5.38 Malaysia (Kuala Lumpur) 9.81 Philippines (Manila) 9.72 to Singapore to Thailand 9.45 to Vietnam 3.20 Source: R&A

4 #2: STRONG EXPERTISE offshoring isn t just about companies moving across geographical boundaries; it s also about companies redrawing organizational boundaries to achieve collaborative supply chains of information, expertise, and knowledge. Getting Offshoring Right (HBR, 2005)

5 There are estimates of at least 300,000 and 200,000 engineers graduating each year from China and India respectively. Alarm over skills shortage in Europe (Financial Times, May 2013) #3: SELECTED FROM A LARGE TALENT POOL

6 #4: LANGUAGE AND CULTURE MATCH

7 SECOND QUESTION: WHAT ARE THE STEPS TO TAKE TO SELECT THE RIGHT PARTNER? Visit Test Evaluate Select Estimate

8 STEP #1: EVALUATE & SHORT LIST Evaluate vendor capabilities and short-list potential candidates that have relevant industry experience

9 STEP #2: TEST & REFINE Evaluate performance of short listed vendors by giving them a pilot or test problem close to what they would work on during your collaboration

10 STEP #3: VISIT & MEET Depending on the project s size and scale, it may be advisable to visit and review the operations centers and facilities where activities will be executed

11 STEP #4: ESTIMATE COSTS Worldwide relative mapping of monthly cost per worker (fully loaded, EU/US = 100) France, USA, Singapore, Hong- Kong Slovenia, Taiwan, South Korea Poland, Czech- Republic, Hungary, Mexico Morocco, Tunisia Russia, Romania, Thailand India Central China, Bangladesh, Vietnam Source: C. Horvat, Eurosia s Seminar (Out)sourcing in Asia (March 28, 2014) Systematically send RFQ s for the activities to be subcontracted from the short-listed providers in order to evaluate and compare your cost (and non-cost) options

12 STEP #5: MAKE YOUR SELECTION Based on your assessment in the previous steps, you are ready to select the best performer for your company

13 now, do you remember who the only person who likes change is?

14 a wet baby

15 Even with the right partner, resistance to change from your team members is a great challenge you may face

16 THIS TOPIC WILL BE ADDRESSED IN OUR NEXT Eurosia IT Insight HOW TO MOTIVATE MY TEAM TO WORK WITH AN IT SERVICE PROVIDER IN ASIA? Get it FREE, subscribe here: eepurl.com/raibn

17 ABOUT EUROSIA You wonder how we have expertise in several fields? See on next page Eurosia S.A. (www.eurosia.eu) is a European IT services provider based in Luxembourg and Singapore with a presence in six European and eight Asian countries. Our team of IT experts and Engineers enables the European technology, industrial and digital companies to be more competitive and innovate. TECHNOLOGIES SUPPORTED: by our people in India and Vietnam Coding & Testing: We deliver bottom-line results to our clients in: Coding (web, mobile) Testing (software) Migration & support (EAS, ERP) Eurosia S.A. has a capacity of 80+ IT experts and engineers. Support & Migration: Our tenured European managers deliver local coordination and client relations in Dutch, English, French, German, and Italian.

18 WHY WORKING WITH EUROSIA Several teams and locations ensuring expertise in different technologies European supervisors based in Asia European standards Local client relations across Europe Ethical employment practices Fixed price or leased staff model Competitive rates THEY TRUST EUROSIA : DIGITAL AGENCY Would you like a budget estimate? Contact Dominique:

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