it2 Remote Onshore Services

Transcription

1 it2 Remote Onshore Services Excellence in SAP Consulting! Contents Changes in Outsourcing Dynamics Taking a Different Approach it2 Outsourcing Advantages Remote Onshore Service Offerings What Our Customers Say Conclusion

2 Dispelling the Myth of Offshore Outsourcing Claim Reality Cheaper to outsource offshore Companies that factor in the total cost of outsourcing may realize that domestic outsourcing can be less expensive than offshoring The domestic delivery model may offer increased productivity, fewer travel costs and less management overhead. 1 Nike says the costs of using an onshore team are on par with the development costs using an offshore team. The code, though, was better and arrived with fewer defects from the onshore team, said Davis. 2 Cost of wages significantly cheaper Good analysts and product developers are cheaper Offshore Availability of quality employees When assessing the total costs or true cost of the offshore-delivered services versus onshore delivered services, there is often a very different picture: True costs involve hourly labor costs + quality + client experience + outcomes. The 'first time right argument can be compelling proof that onshore can be less expensive than "low-cost Indian labor rates). 7 Wage inflation is 10 to 15 percent in India, while many American cities face wage deflation 3 Many of our clients are already paying higher rates offshore than we are offering onshore. Good analysts and product developers in India and China are few and far between, so pay for such jobs has been rising by up to 30% a year... pay for workers with such skills in India and China can be even higher than in America or Europe, with all the disadvantages of being several time zones away from head office 4 Workers with greater seniority are much more difficult to find. The scarcity of experienced workers plus the financial incentive for rapid promotions managers are not being developed quickly enough to fill all positions, And many managers leave India to work in the U.S. or Europe 5 2

3 Comparison of Onshore and Offshore Outsourcing 6 A recent survey of US IT managers comparing the effectiveness of onshore with offshore resources provided the following results Comparison US Onshore Offshore Workers have good Cultural and Communication Skills 82% 33% Workers understand my business 88% 43% Workers take Initiative 77% 40% Workers are Innovative 77% 45% Satisfied with current performance of Network/server management 74% 56% Satisfied with current performance of IT help desk 71% 54% Satisfied with current performance of Applications development 77% 61% Satisfied with current performance of Applications maintenance 76% 64% 3

4 Companies Moving Back Onshore When offshoring pioneers like GE and others start to make public statements about moving or keeping jobs onshore, one can be sure that it s not down to altruism. They are seeing real value in delivering business services close to the business, at an acceptable price point. 10 Cost Disparity of Offshore Outsourcing Eroding with Time Offshore Nike Sprints From Offshore to Onshore Developers 8 New Onshore IT Outsourcing Centers Outnumber New Offshore Locations 9 Cost Time U.S. Onshore 4

5 A Different Approach At it2, we have taken a different approach to providing value to our customers utilizing an onshore outsourcing model Great small towns are one of America s best kept secrets for tapping underemployed, highly-skilled resources at affordable costs Small towns offer great employees A safe, wholesome environment to raise children A great quality of life Low cost of living Strong community with shared core values it2 Remote Services is located where high-skilled workers are available at a low cost 5

6 it2 Remote Location: Winfield, KS Location Time Zone Education Opportunities Rich cultural traditions in architecture, art, theater, and music Major Airport Key Industries People who live here also commute to Central United States Central U.S. Southwestern College (4 yr. college located in Winfield) 2 major universities and 12 colleges within 100 mile radius Oldest orchestral music program in American public schools Annual host to one of the top 10 music festivals in the US according to USA Today (Walnut Valley Festival) 40 minutes away Newell-Rubbermaid, Mead Westvaco Calmar, Winfield Consumer Products/Husky Liners, GE Engine Services Koch Industries, Cessna, Spirit Aerosystems, Beechcraft, Bombardier Learjet, Boeing, Johnson Controls, Coleman Winfield has twice been rated as one of The 100 Best Small Towns in America 6

7 Advantages of it2 Remote Services 7 Time zone Increase productivity by avoiding late-night conference calls and 72 hour communication cycles Language and communication Reliable communication results in getting it done right the first time Avoid the multiplicative costs of rework Flexible staffing models utilizing fractional FTEs Paying for only what you need results in significant cost savings Mixed skill-set model Save costs by paying one retainer for multiple skill-sets that you utilize on an ad hoc basis

8 Advantages of it2 Remote Services, Cont. Superior talent pool India s talent pool has been stretched and diluted due to sustained year-over-year exponential growth We have a highly stable workforce in rural KS with a low level of competition for SAP resources Pricing parity Many of our clients are already paying higher hourly rates for offshore resources than we are offering for onshore resources A low-cost business environment combined with a low-cost professional labor market results in very competitive pricing Our rates start at $65/hr with an average blended rate of $80/hr 8

9 Advantages of it2 Remote Services, Cont. Customized outsourcing approach There is no one-size-fits-all model for our customers We are committed to defining a model that works best for you and your business needs We can provide dedicated resources or fractional FTEs Dedicated development/support center or ad hoc staffing Remote COE or targeted expertise Functional outsourcing or supplemental staffing Mixed skill-set resource pooling Ad hoc utilization 9

10 Remote Onshore Service Offerings At it2 we provide remote services around all areas of SAP SAP Areas ECC All Modules/ Functional Areas Basis ABAP/XI/PI BI/BW/BOBJ/ Dashboards EPM/BPC HANA NetWeaver Services System Administration and Maintenance Production Support Help Desk Testing Configuration Development Implementations Upgrades Training 10

11 What Our Customers Say 11 I have been using it Services 2 for remote SAP BusinessObjects Web Intelligence development and Super User training. This has been an excellent experience. Our consultant was very responsive and got the work done right the first time. We utilized the fractional FTE pricing option and only paid for what we needed when we needed it. What a concept! I highly recommend it2 to anyone looking for remote development, support, or training. Karen Lane Director of HS&E Baker-Hughes, Inc.

12 Conclusion Are you ready to discuss your outsourcing goals and objectives with it2 to see how we can tailor a plan to your specific needs? For more information or to schedule a meeting, contact: David Bromlow Director of Professional Services dbromlow@itservices2.com Phone:

13 References 1 Betts, Mitch. Strategic Guide: Surprising Trends in IT Outsourcing CIO 31 Oct. 2012: 7. CIO.com. Web. 25 Oct Thibodeau, Patrick. Nike Sprints From Offshore to Onshore Developers Computerworld 9 Oct. 2013: 1. CIO.com. Web. 25 Oct Betts, Mitch. Strategic Guide: Surprising Trends in IT Outsourcing CIO 31 Oct. 2012: 6. CIO.com. Web. 25 Oct On the turn Special Report: Outsourcing and offshoring, India s outsourcing business. The Economist from the print edition 19 Jan Web. 25 Oct Niccolls, Chris. Onshore and Offshore Compensation Trends Outsourcing.About.com. Web. 25 Oct Around the world and back again: Sourcing services in the USA. HFS Research June 2013: 6-8 Horsesforsources.com. Web. 25 Oct Young, Allie, Huntley, Helen, and Karamouzis, Frances. Market Trends: Providers Expand U.S. Onshore Delivery, Invigorate Investments in Low-Cost Domestic and Rural Sourcing Options Gartner, Inc. 23 May Thibodeau, Patrick. Nike Sprints From Offshore to Onshore Developers Computerworld 9 Oct CIO.com. Web. 25 Oct Overby, Stephanie. New Onshore IT Outsourcing Centers Outnumber New Offshore Locations CIO. 26 Jul CIO.com. Web. 25 Oct Around the world and back again: Sourcing services in the USA. HFS Research June 2013: 2. Horsesforsources.com. Web. 25 Oct