Offshore Outsourcing Alternative Solution

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The Homeland Onshore Model is an alternative to Information Technology Offshore Outsourcing. We can demonstrate how U.S. based resources can directly compete with offshore companies. Contact me at Mark@synergroup.com for more information.

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Offshore Outsourcing Alternative Solution

  1. 1. The Homeland Onshore Model Benefits of Domestic Remote Flexible Staffing © 2011 Synergroup Systems Inc
  2. 2. Over-Promised, Under-Delivered <ul><li>&quot;The offshoring model will move around, there are certain parts of the US that are now cheaper than India from an IT perspective. Companies are not going to be looking at the same countries as before…&quot;  </li></ul><ul><ul><li>BusinessWeek April 29 2009 </li></ul></ul><ul><li>“ Mixed results have shown that offshore IT outsourcing -- all the rage for the past decade -- has over-promised and under-delivered. As our ability to calculate total cost of ownership of offshore outsourcing has advanced, CIO's are beginning to evaluate alternatives, many of which may be better bargains than previously thought.” </li></ul><ul><ul><li>ComputerWorld July 25 2011 </li></ul></ul>
  3. 3. Failure Offshore? <ul><ul><ul><ul><ul><li>&quot;Numerous surveys indicate that anywhere from 17 percent to 53 percent of customers have not realized business value/return on investment from offshore outsourcing.&quot; CIO Magazine 11/08 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>&quot;When compared to their beliefs two years ago, 58% of companies said they were less of a believer in the idea that working with Indian IT outsourcers delivers value for their company and its shareholders “ Information Week 1/09 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>&quot;Three surveys conducted across [India] between January 2007 and March 2008 have shown that three in every ten job seekers make false claims on their Resumes while applying for jobs.&quot; Hindustan Times 7/08 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>According to the National Association of Software and Service Companies attrition rates climb as high as 35 percent in India for some offshore vendors </li></ul></ul></ul></ul></ul>© 2011 Synergroup Systems Inc
  4. 4. Failure Offshore? <ul><ul><li>&quot;...20% of  InformationWeek  500 companies say they've taken back offshored work in the past year.&quot; Information Week 11/07 </li></ul></ul><ul><ul><li>&quot;Data from law outfit Addleshaw Goddard has found that 60 percent of companies had changed or renegotiated their IT outsourcing contract while a third had opted to return the running of their IT infrastructures to internal employees.&quot; iHotDesk 03/07 </li></ul></ul><ul><ul><li>&quot;The number of outsourcing contracts worth more than $25 million signed by global financial services firms declined by 19 percent last year compared to 2007 and their total value decreased by more than 25 percent.&quot; CFO Magazine 01/09 </li></ul></ul><ul><ul><li>“ While staff costs may be 40 percent lower in offshore locations, Compass research found these savings were undermined by a 60 percent drop in productivity in operations where the full lifecycle of application development has been outsourced.” PC World 4/09 </li></ul></ul>© 2011 Synergroup Systems Inc
  5. 5. Hidden Offshore Costs/Challenges <ul><li>Hidden Costs Render Offshore Outsourcing More Expensive Than Advertised </li></ul><ul><ul><li>Additional Staff Overhead – Both Management & Staff Must Spend More Time With Offshore Staff </li></ul></ul><ul><ul><li>More Extensive Specification Creation (Bullet Proofing Specs) </li></ul></ul><ul><ul><li>Rework - Often Provides Less Experienced Resources Who Are Gaining Their Experience OTJ </li></ul></ul><ul><ul><li>Additional Managerial Time (Late Night Conference Calls) </li></ul></ul><ul><ul><li>Loss Of Business Knowledge/Cost Of Transition </li></ul></ul><ul><ul><li>Dollar Instability </li></ul></ul>© 2011 Synergroup Systems Inc
  6. 6. More Offshore Costs/Challenges <ul><ul><ul><li>Blended Rates – Onshore Staff Required To Communicate With Offshore Contractors </li></ul></ul></ul><ul><ul><ul><li>Productivity/Efficiency Issues (Offshore vs. Onshore Ratios) </li></ul></ul></ul><ul><ul><ul><li>Cultural Differences (Limited Input) </li></ul></ul></ul><ul><ul><ul><li>Communications Issues (Quick Understanding of Issues) </li></ul></ul></ul><ul><ul><ul><li>Inability To Conduct Background Checks </li></ul></ul></ul><ul><ul><ul><li>Oversight/Compliance Costs </li></ul></ul></ul><ul><ul><ul><li>High Turnover </li></ul></ul></ul><ul><ul><ul><li>Travel </li></ul></ul></ul>© 2011 Synergroup Systems Inc
  7. 7. Too Much Risk? <ul><li>Offshore Outsourcing Is Getting Riskier: Oversight/Compliance Becoming More Important And Even Mandatory, Adding To Costs </li></ul><ul><li>Risk Factors </li></ul><ul><ul><ul><li>Political Instability </li></ul></ul></ul><ul><ul><ul><li>Currency Devaluation </li></ul></ul></ul><ul><ul><ul><li>Copyright Infringement/IP </li></ul></ul></ul><ul><ul><ul><li>Data Security </li></ul></ul></ul><ul><ul><ul><li>Geo Political Tensions </li></ul></ul></ul><ul><ul><ul><li>U.S. Policy Changes </li></ul></ul></ul><ul><ul><ul><li>Financial Viability Of Offshore Partner </li></ul></ul></ul><ul><ul><ul><li>Unfavorable Corporate Perception </li></ul></ul></ul><ul><ul><ul><li>Do You Have A Contingency Plan? </li></ul></ul></ul>
  8. 8. Time For A Change? Why Not Stay Home? © 2011 Synergroup Systems Inc
  9. 9. HOM Unlocks U.S. Based Value <ul><li>Leverages Compelling Rate Differentials of Lower Cost Areas in The U.S. </li></ul><ul><li>I.T. Professionals Value The Option to Work Remotely and Will Work for Less (Via Your VPN) </li></ul><ul><li>Real Estate, Infrastructure, Burden, Health Care & Overhead Costs Eliminated </li></ul><ul><li>Significant Savings vs. Onsite Consultants or FTE’s </li></ul><ul><li>Captures Domestic I.T. Supply Side Favorability </li></ul>© 20011Synergroup Systems Inc
  10. 10. HOM Unlocks U.S. Productivity <ul><li>Mitigates Communication Issues </li></ul><ul><li>Closer Proximity (No Time Zone Challenges) </li></ul><ul><li>Most Technologies In Play (Java, .NET, SAP, Data Warehouse, Mainframe, etc.) </li></ul><ul><li>Not Restricted to Local Talent Pools </li></ul><ul><li>Rural Sourcing = Significant Cost Savings </li></ul><ul><li>Easier On-Boarding Process/Options </li></ul>© 2011 Synergroup Systems Inc
  11. 11. The Flexible Staffing Benefits of HOM <ul><ul><ul><li>Scalability (Easily Add Or Subtract) </li></ul></ul></ul><ul><ul><ul><li>Leverage Current Wage Levels </li></ul></ul></ul><ul><ul><ul><li>Part Time Resources Now More Available & Easily Assimilated (J.I.T. Resourcing) </li></ul></ul></ul><ul><ul><ul><li>New Skills Easily Acquired </li></ul></ul></ul><ul><ul><ul><li>Subject To U.S. Privacy & Copyright Law </li></ul></ul></ul><ul><ul><ul><li>Background Checks Possible </li></ul></ul></ul>© 2011 Synergroup Systems Inc
  12. 12. HOM Delivers Bottom Line Results © 2011 Synergroup Systems Inc $60,000.00 Websphere Admin. $50,000.00 Mainframe Developers $48,000.00 Consultant Swap (ABAP) $80,000.00 Senior Systems Programmer $45,000.00 Web Developers $60,000.00 Senior ETL EDW Savings Per Resource Skill Set
  13. 13. Welcome Back HOM <ul><li>Onshore Resources Require Less Overhead (How Much Time Do You Spend On Overseas Conference Calls?) </li></ul><ul><li>Hidden Costs Can Cripple Anticipated Offshore Outsourcing Benefits </li></ul><ul><li>HOM ROI Can Be Immediate </li></ul><ul><li>Modern Tools Make Remote Staffing Easier </li></ul>© 2011 Synergroup Systems Inc
  14. 14. How HOM Works <ul><li>On-Boarding </li></ul><ul><li>Skill Sets Determined </li></ul><ul><li>Candidates Screened </li></ul><ul><li>Best Candidates Presented </li></ul><ul><li>Client Interview(s) </li></ul><ul><li>Determine Start Date </li></ul><ul><li>P.O. Approved </li></ul><ul><li>Candidate Starts Remote or In-Person </li></ul><ul><li>Post Boarding </li></ul><ul><li>Timesheet Process Determined </li></ul><ul><li>Invoices Sent per Contract Arrangement </li></ul><ul><li>Resource Directed By Client </li></ul><ul><li>Performance Evaluations Ongoing </li></ul><ul><li>Normal Two Weeks Notice </li></ul>© 2011 Synergroup Systems Inc
  15. 15. How Will HOM Help Your Organization? <ul><li>Exchange High Priced Consultants </li></ul><ul><li>Effective Alternative To Offshoring </li></ul><ul><li>Increase Efficiency/Capacity (Do More With Less) </li></ul><ul><li>Flexible Staffing (Scale Up & Down Quickly) </li></ul><ul><li>How Can We Help Reduce Your Costs? </li></ul>© 2011 Synergroup Systems Inc
  16. 16. HOM In The News <ul><li>E-Commerce Times </li></ul><ul><li>Business Week </li></ul><ul><li>ComputerWorld </li></ul><ul><li>Dallas Morning News </li></ul><ul><li>India Press </li></ul><ul><li>Television: CBS Sunday with Charles Kuralt Interview </li></ul>© 2011 Synergroup Systems Inc
  17. 17. Synergroup Systems Aliso Viejo, CA Contact: Mark Jennings (909) 980-7171 [email_address] www.ITOnshore.com © 2011 Synergroup Systems Inc

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