Total Cost of Engagement Comparison<br />January 2009<br />
Assumptions<br />Long term, 3+ developer contract considered<br />Asian and in-house rates are estimates<br />Fewer trips ...
Total Cost of Engagement<br />Scio Consulting International, LLC. All rights reserved.<br />3<br />
Rates for Developers<br />Scio Consulting International, LLC. All rights reserved.<br />4<br />
Overhead<br />Scio Consulting International, LLC. All rights reserved.<br />5<br />
Attrition<br />Scio Consulting International, LLC. All rights reserved.<br />6<br />
Calls and Trips<br />Scio Consulting International, LLC. All rights reserved.<br />7<br />
Productivity<br />Scio Consulting International, LLC. All rights reserved.<br />8<br />
Decision and Transition Models<br />If rate differences are NOT the primary driver and productivity improvements and ease ...
Scio Competitive Advantage<br />SaaS / RIA/ Web 2.0 Focused<br />Market and business model understanding<br />Technical sk...
Clients<br />11<br />Scio Consulting International, LLC. All rights reserved.<br />These are a few of our satisfied custom...
Scio Consulting International, LLC. All rights reserved.<br />12<br />Development Center: Morelia<br />Population: 1 Milli...
Scio Consulting International, LLC. All rights reserved.<br />13<br />Mexico vs. India<br />
Scio Consulting International, LLC. All rights reserved.<br />14<br />Gartner’s Country Suitability<br />Source:  Gartner ...
Scio Consulting International, LLC. All rights reserved.<br />15<br />Full Lifecycle IT Services<br />From Ideas to Produc...
Scio Consulting International, LLC. All rights reserved.<br />16<br />Project Meetings<br />Nice surroundings close by…<br />
Jeremy BeckVP of Business Development 408.404-3897 x301jbeck@sciodev.com <br />http://www.sciodev.com<br />
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Software Development Outsourcing - Total Cost Of Engagement Tce

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A comparison of 3 different resource types for building a software product: internal, offshore, and nearshore

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Software Development Outsourcing - Total Cost Of Engagement Tce

  1. 1. Total Cost of Engagement Comparison<br />January 2009<br />
  2. 2. Assumptions<br />Long term, 3+ developer contract considered<br />Asian and in-house rates are estimates<br />Fewer trips are required in nearshore model as cultural similarities and experience reduce understanding gaps<br />Productivity is higher with Mexican team primarily due to time zone proximities and real time collaboration<br />Extensive SaaS expertise may contribute to productivity gains as well.<br />Scio Consulting International, LLC. All rights reserved.<br />2<br />
  3. 3. Total Cost of Engagement<br />Scio Consulting International, LLC. All rights reserved.<br />3<br />
  4. 4. Rates for Developers<br />Scio Consulting International, LLC. All rights reserved.<br />4<br />
  5. 5. Overhead<br />Scio Consulting International, LLC. All rights reserved.<br />5<br />
  6. 6. Attrition<br />Scio Consulting International, LLC. All rights reserved.<br />6<br />
  7. 7. Calls and Trips<br />Scio Consulting International, LLC. All rights reserved.<br />7<br />
  8. 8. Productivity<br />Scio Consulting International, LLC. All rights reserved.<br />8<br />
  9. 9. Decision and Transition Models<br />If rate differences are NOT the primary driver and productivity improvements and ease of engagement ARE the primary motivators then you should consider change.<br />Ask yourself, how great is the pain?<br />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.<br />Scio Consulting International, LLC. All rights reserved.<br />9<br />
  10. 10. Scio Competitive Advantage<br />SaaS / RIA/ Web 2.0 Focused<br />Market and business model understanding<br />Technical skills<br />Ecosystem knowledge<br />Product Focused<br />Understand the product lifecycle and challenges<br />Agile Development Methodologies<br />Clearer communications and expectation management for quicker, better results<br />Nearshore Model = easier, cheaper, smarter<br />Same time zone &gt; real-time collaboration &gt; increased productivity &gt; faster time to market & lower cost<br />Saves time and money on projects through more efficient communications<br />Perform your own TCE calculations here.<br />10<br />
  11. 11. Clients<br />11<br />Scio Consulting International, LLC. All rights reserved.<br />These are a few of our satisfied customers. We wouldlove the opportunity to work with you.<br />
  12. 12. Scio Consulting International, LLC. All rights reserved.<br />12<br />Development Center: Morelia<br />Population: 1 Million<br />Capital of Michoacan State<br />Government & college town<br />200 mi from Mexico City<br />Time Zone: CST<br />Altitude: 5,000 ft<br />Founded 1541<br />Direct Flights<br />Houston - 2h<br />Los Angeles - 2.5h<br />San Francisco - 4h<br />Chicago - 4h<br />Anywhere in the US within 6-7 hours<br />
  13. 13. Scio Consulting International, LLC. All rights reserved.<br />13<br />Mexico vs. India<br />
  14. 14. Scio Consulting International, LLC. All rights reserved.<br />14<br />Gartner’s Country Suitability<br />Source: Gartner Study of Qualitative Indicators of Country Suitability<br />
  15. 15. Scio Consulting International, LLC. All rights reserved.<br />15<br />Full Lifecycle IT Services<br />From Ideas to Product<br />
  16. 16. Scio Consulting International, LLC. All rights reserved.<br />16<br />Project Meetings<br />Nice surroundings close by…<br />
  17. 17. Jeremy BeckVP of Business Development 408.404-3897 x301jbeck@sciodev.com <br />http://www.sciodev.com<br />

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