The pain and glory of outsourcing Algeron OÜ Dmitri Sädus, CEO March 2009, Tallinn

Outsourcing - customer perspective Why: Short time-to-market demand Lack/shortage of specific skills 70/30 rule Sustain flexibility in complex labour law environment Maintaining / lowering cost, expenses It’s cool! You can compile a preferable team How: Traditional model – outsourcing a team, function, part of project Body leasing – outsourcing a person or persons Subsidiary model – establishing a legal body for hiring resources, mix of first two

Why:

Short time-to-market demand

Lack/shortage of specific skills

70/30 rule

Sustain flexibility in complex labour law environment

Maintaining / lowering cost, expenses

It’s cool!

You can compile a preferable team

How:

Traditional model – outsourcing a team, function, part of project

Body leasing – outsourcing a person or persons

Subsidiary model – establishing a legal body for hiring resources, mix of first two

Outsourcing – supplier perspective What: Fill customer’s needs, gaps, missing areas Establish a firm process – requirements, steering, planning, analyses, QA, development, change request Invest, improve, move on, don’t hesitate, learn, improvise, provide solutions Take care of business rather concentrating on assignments Maintain your partner / outsourcing network, follow 70/30 rule What not: Let customer manage the project Don’t try to achieve more than asked Don’t lose control, driver your strategic goals, be partner with customer Don’t let your profit to be eaten, keep eye on internal costs Don’t stick on major clients, diversify your client and skill base

What:

Fill customer’s needs, gaps, missing areas

Establish a firm process – requirements, steering, planning, analyses, QA, development, change request

Invest, improve, move on, don’t hesitate, learn, improvise, provide solutions

Take care of business rather concentrating on assignments

Maintain your partner / outsourcing network, follow 70/30 rule

What not:

Let customer manage the project

Don’t try to achieve more than asked

Don’t lose control, driver your strategic goals, be partner with customer

Don’t let your profit to be eaten, keep eye on internal costs

Don’t stick on major clients, diversify your client and skill base

Outsourcing driving force Common goal Desire to achieve Clear and communicated goals Clear, strict, flexible and good communication People involved are on same level Channelling efforts on solutions NO as acceptable answer

Common goal

Desire to achieve

Clear and communicated goals

Clear, strict, flexible and good communication

People involved are on same level

Channelling efforts on solutions

NO as acceptable answer

Thank you Questions ….. Dmitri Sädus, Algeron OÜ, CEO Email: dmitri.sadus@mail.ee Mobile: +372 51 68 718

Questions …..

Dmitri Sädus, Algeron OÜ, CEO

Email: dmitri.sadus@mail.ee

Mobile: +372 51 68 718