Software Development Outsourcing - Total Cost Of Engagement Tce

Total Cost of Engagement Comparison
January 2009

Assumptions
Long term, 3+ developer contract considered
Asian and in-house rates are estimates
Fewer trips are required in nearshore model as cultural similarities and experience reduce understanding gaps
Productivity is higher with Mexican team primarily due to time zone proximities and real time collaboration
Extensive SaaS expertise may contribute to productivity gains as well.
Scio Consulting International, LLC. All rights reserved.
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Total Cost of Engagement
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Rates for Developers
4

Overhead
5

Attrition
6

Calls and Trips
7

Productivity
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Decision and Transition Models
If rate differences are NOT the primary driver and productivity improvements and ease of engagement ARE the primary motivators then you should consider change.
Ask yourself, how great is the pain?
Gradual transitions where nearshore resources are increased while offshore resources are decreased generally work best. We have worked with several and proposals will vary with each scenario.
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Scio Competitive Advantage
SaaS / RIA/ Web 2.0 Focused
Market and business model understanding
Technical skills
Ecosystem knowledge
Product Focused
Understand the product lifecycle and challenges
Agile Development Methodologies
Clearer communications and expectation management for quicker, better results
Nearshore Model = easier, cheaper, smarter
Same time zone > real-time collaboration > increased productivity > faster time to market & lower cost
Saves time and money on projects through more efficient communications
Perform your own TCE calculations here.
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Clients
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These are a few of our satisfied customers. We wouldlove the opportunity to work with you.

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Development Center: Morelia
Population: 1 Million
Capital of Michoacan State
Government & college town
200 mi from Mexico City
Time Zone: CST
Altitude: 5,000 ft
Founded 1541
Direct Flights
Houston - 2h
Los Angeles - 2.5h
San Francisco - 4h
Chicago - 4h
Anywhere in the US within 6-7 hours

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Mexico vs. India

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Gartner’s Country Suitability
Source: Gartner Study of Qualitative Indicators of Country Suitability

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Full Lifecycle IT Services
From Ideas to Product

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Project Meetings
Nice surroundings close by…

Jeremy BeckVP of Business Development 408.404-3897 x301jbeck@sciodev.com
http://www.sciodev.com