Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
WORLD TECHNOLOGY HOTSPOTS 
COMPARED
WHAT IS IT? 
This is a marketing study which aims to help US technology companies choose a global location for outsourced ...
HOW WE DID IT? 
500+ COMPANIES WORLD-WIDE HAVE READ 2013's GLOBAL TALENT MAP 
•200+ software development service providers...
1 OUT OF 2 COMPANIES OUTSOURCES 
43% Percent of technology companies in US outsource 
2,637,239Total number of U.S. jobs o...
TOP 30 OUTSOURCING LOCATIONS 
Gartner's list of leading locations to offshore IT services. 
Argentina 
Brazil 
Chile 
Colo...
WHICH ONE IS RIGHT FOR YOU?
REGIONAL LEADERS 
Americas 
Mexicoservers 50.2% of businesses offshoring IT to the region, while Brazil has 46.8% and Arge...
CRITERIA NOT COVERED BY GARTNER 
Cultural Compatibility 
How easy is it to get “on the same page”? 
Communications 
Will y...
COMMUNICATIONS 
EF EPI calculates a country's average adult English skill level using data from two different EF English t...
TIMEZONE 
Source: http://www.worldtimebuddy.com/ 
When EST is 
8 A.M. 
6 P.M. 
Brazil 
9 a.m. 
7 p.m. 
Mexico 
7 a.m. 
5 p...
ATTRITION RATE 
Hiring of wrong employee can cost your business up to $60,000 
Source: Hay Group; Outsourcing Institute; N...
AVERAGE 
JUNIOR 
MIDDLE 
SENIOR 
QA 
ARCHITECT 
Brazil 
$37 
$42 
$47 
$36 
$50 
Mexico 
$30 
$36 
$43 
$35 
$49 
Argentin...
AVERAGE BILLING RATE 
We have obtained rates from more than 120 companiesaround the world 
Source: AgileEngineLLC
DEVELOPERS POOL 
Total developers, 
thousands 
USA 
321 
180 
56 
130 
1,243 
Brazil 
25 
11 
4 
11 
57 
Mexico 
9 
5 
1 
...
CULTURAL COMPATIBILITY 
Cultural Compatibility can be defined as adaptability to multicultural approaches to support an in...
OTHER CRITERIA 
Source: The Global Innovation Index 2014
AND THE WINNERS ARE...
But we can see how countries stack up in 2 common scenarios 
NO ONE SIZE FITS ALL
SCENARIO #1 
Evaluation Criteria 
Weight 
Communications 
3 
Timezone 
1 
Attrition Rate 
3 
BillingRates 
10 
Developers ...
WATERFALL PROCESS AND COST MATTERS MOST 
Winners are Indiaand Vietnam
OVERALL RANKING FOR SCENARIO#1
SCENARIO #2 
AGILE PROCESS AND OUTCOME MATTERS MOST 
You use agile development with daily communications and want a locati...
AGILE PROCESS AND OUTCOME MATTERS MOST 
Winners are Mexico, Poland, Czech Republic and Ukraine.
OVERALL RANKING FOR SCENARIO#2
WANT TO HEAR MORE? 
Check out agileengine.com 
Or connect with Alex directly 
Alex Kalinovsky, CEO 
alex@agileengine.com
REFERENCES 
1. Wall Street Journal http://online.wsj.com/article/SB1000142405297020340550457 6603073952835408.html 
2. Wal...
Upcoming SlideShare
Loading in …5
×

World technology hotspots 2014

2,395 views

Published on

This is a marketing study which aims to help US technology companies choose a global location for outsourced software development.

Published in: Technology

World technology hotspots 2014

  1. 1. WORLD TECHNOLOGY HOTSPOTS COMPARED
  2. 2. WHAT IS IT? This is a marketing study which aims to help US technology companies choose a global location for outsourced software development.
  3. 3. HOW WE DID IT? 500+ COMPANIES WORLD-WIDE HAVE READ 2013's GLOBAL TALENT MAP •200+ software development service providers worldwide evaluated •300+ developers interviewed worldwide •20+ Gartner reports researched •1000sof web pages googled and read •10+ gallons of coffee consumed to get and present valid data
  4. 4. 1 OUT OF 2 COMPANIES OUTSOURCES 43% Percent of technology companies in US outsource 2,637,239Total number of U.S. jobs outsourced Source: Statistic Brain. TOP 4 reasons why companies outsource
  5. 5. TOP 30 OUTSOURCING LOCATIONS Gartner's list of leading locations to offshore IT services. Argentina Brazil Chile Colombia Costa Rica Mexico Peru Uruguay Source: Gartner, Inc. Bangladesh China India Indonesia Malaysia Philippines Sri Lanka Thailand Vietnam Belarus Bulgaria Czech Republic Hungary Poland Romania Russia Slovakia Ukraine Mauritius Morocco South Africa Turkey Americas Asia/Pacific Central & Eastern Europe Africa & Middle East
  6. 6. WHICH ONE IS RIGHT FOR YOU?
  7. 7. REGIONAL LEADERS Americas Mexicoservers 50.2% of businesses offshoring IT to the region, while Brazil has 46.8% and Argentina22.1% and Colombiagoes 4th. In Asia/Pacific 48.5% of IT services buyers get services from Indiawith Chinaclose behind with 45.9% and Malaysia(13.9%) with Philippines and Vietnam. The CEE's biggest offshore service providers are Ukraine, Russia, Poland, Czech Republic and Romania. Asia Central and Eastern Europe Source: Gartner, Inc.
  8. 8. CRITERIA NOT COVERED BY GARTNER Cultural Compatibility How easy is it to get “on the same page”? Communications Will you face a lot of “Sorry, can you repeat please”? Timezone Will you be able to interact enough? Attrition rate How likely are your developers to defect? Billing Rates What shall one expect to pay? Developers Pool Do you have enough to choose from? Other Political Environment Business Environment Education Quality Infrastructure
  9. 9. COMMUNICATIONS EF EPI calculates a country's average adult English skill level using data from two different EF English tests completed by hundreds of thousands of adults every year. Source: EF English Proficiency Index EF English Proficiency Index
  10. 10. TIMEZONE Source: http://www.worldtimebuddy.com/ When EST is 8 A.M. 6 P.M. Brazil 9 a.m. 7 p.m. Mexico 7 a.m. 5 p.m. Argentina 9 a.m. 7 p.m. Colombia 7 a.m. 5 p.m. China 8 p.m. 6 a.m. Philippines 8 p.m. 6 a.m. India 5.30 p.m. 3.30 a.m. Malaysia 8 p.m. 6 a.m. Vietnam 7 p.m. 5 a.m. Poland 2 p.m. 12 p.m. Romania 3 p.m. 1 a.m. Ukraine 3 p.m. 1 a.m. Russia 4 p.m. 2 a.m. Czech Republic 2 p.m. 12 p.m. Hours to Cooperate
  11. 11. ATTRITION RATE Hiring of wrong employee can cost your business up to $60,000 Source: Hay Group; Outsourcing Institute; NearshoreAmericas; Global Outsourcing Information Inc; The Malaysian Employers Federation (MEF), etc.
  12. 12. AVERAGE JUNIOR MIDDLE SENIOR QA ARCHITECT Brazil $37 $42 $47 $36 $50 Mexico $30 $36 $43 $35 $49 Argentina $31 $37 $44 $35 $48 Colombia $37 $41 $48 $36 $52 China $18 $22 $26 $22 $26 Philippines $19 $25 $31 $27 $39 India $15 $19 $22 $18 $25 Malaysia $24 $31 $38 $30 $42 Vietnam $13 $15 $17 $15 $18 Poland $27 $34 $42 $30 $48 Romania $30 $38 $48 $35 $49 Ukraine $27 $36 $41 $30 $43 Russia $23 $29 $35 $29 $37 Czech $32 $37 $45 $35 $47 BILLING RATES Billing rates is an average of quotes from a minimum of 5 companies for each country Source: AgileEngineLLC
  13. 13. AVERAGE BILLING RATE We have obtained rates from more than 120 companiesaround the world Source: AgileEngineLLC
  14. 14. DEVELOPERS POOL Total developers, thousands USA 321 180 56 130 1,243 Brazil 25 11 4 11 57 Mexico 9 5 1 5 26 Argentina 11 6 2 4 24 Colombia 3 2 1 2 8 China 10 3 2 6 34 Philippines 8 4 1 4 30 India 178 78 7 42 548 Malaysia 4 2 1 2 13 Vietnam 4 3 1 3 16 Poland 16 7 2 3 37 Romania 9 5 1 4 26 Ukraine 12 8 3 8 37 Russia 11 6 2 6 39 Czech Republic 7 4 1 3 19 Source: LinkedIn
  15. 15. CULTURAL COMPATIBILITY Cultural Compatibility can be defined as adaptability to multicultural approaches to support an international business environment. Source: Gartner, Inc.
  16. 16. OTHER CRITERIA Source: The Global Innovation Index 2014
  17. 17. AND THE WINNERS ARE...
  18. 18. But we can see how countries stack up in 2 common scenarios NO ONE SIZE FITS ALL
  19. 19. SCENARIO #1 Evaluation Criteria Weight Communications 3 Timezone 1 Attrition Rate 3 BillingRates 10 Developers Pool 6 Cultural Compatibility 3 Political Environment 1 Business Enviroment 4 Education Quality 3 Infrastructure 3 You have clear requirements and use waterfall or RUP process. You are budget conscious and the development is not very complex. WATERFALL PROCESS AND COSTS MATTER MOST Waterfall Method
  20. 20. WATERFALL PROCESS AND COST MATTERS MOST Winners are Indiaand Vietnam
  21. 21. OVERALL RANKING FOR SCENARIO#1
  22. 22. SCENARIO #2 AGILE PROCESS AND OUTCOME MATTERS MOST You use agile development with daily communications and want a location with highly educated engineers who stick around. Evaluation Criteria Weight Communications 10 Timezone 6 Attrition Rate 9 BillingRates 3 Developers Pool 3 Cultural Compatibility 8 Political Environment 1 Business Enviroment 4 Education Quality 8 Infrastructure 6
  23. 23. AGILE PROCESS AND OUTCOME MATTERS MOST Winners are Mexico, Poland, Czech Republic and Ukraine.
  24. 24. OVERALL RANKING FOR SCENARIO#2
  25. 25. WANT TO HEAR MORE? Check out agileengine.com Or connect with Alex directly Alex Kalinovsky, CEO alex@agileengine.com
  26. 26. REFERENCES 1. Wall Street Journal http://online.wsj.com/article/SB1000142405297020340550457 6603073952835408.html 2. Wall Street Journal http://online.wsj.com/article/SB1000142405274870351550457 6142092863219826.html?mod=WSJ_hp_MIDDLENexttoWhatsNewsTop 3. Sourcing Line Computer Economics http://www.statisticbrain.com/outsourcing-statistics-by-country/ 4. Deloitte's 2012 Global Outsourcing and Insourcing Surveyhttp://deloitte.wsj.com/cfo/2012/09/18/outsourcing- becoming-standard-business-strategy-for-many-companies/ 5. Gartner Reports http://www.gartner.com/newsroom/id/1500514 6. Gartner Says Alternative Offshore Locations for IT Services Are Emerging as Global Delivery Models Evolvehttp://www.gartner.com/newsroom/id/2177915 7. Computer Weekly http://www.computerweekly.com/blogs/outsourcing/2012/09/in dias-dominance-as-offshore-it- location-being-diluted.html 8. The Global Innovation Index 2014 –https://www.globalinnovationindex.org/content.aspx?page=GII-Home 9. English Proficiency Index http://www.ef.com/epi/ 10. CBS Interactive http://www.techrepublic.com/blog/cio-insights/indian-outsourcing-why-skills-shortages-persist- despite-the-graduate-glut/ 11. Outsourcing Institute 12. NearshoreAmericas 13. ABS-CBN Interactive http://www.abs-cbnnews.com/business/04/02/12/bpo-workers-opt-jobs-overseas 14. Hay Group -http://www.haygroup.com/in/press/Details.aspx?ID=37383 15. Human Resources Online -http://www.humanresourcesonline.net/news/31092 16. Malaysian Employers Federation. -http://www.mef.org.my/library/MC_MEFinthenews/SunStar120 219a.pdf

×