Offshore development center


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Offshore development center in Ukraine

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Offshore development center

  1. 1. Offshore Development Centers (ODC) +38 (050) 388 49 17 Oct, 2011
  2. 2. Why offshore development center? are good for both startups and existing business can run one or several software projects simultaneously can include one or several development and QA teams with different skills are set up and supported by an outsources service provider usually at their premises and with vendor’s experience and existing infrastructure
  3. 3. ODC Benefits Quick set up and quick cancelation, no longer-term investments Reduced costs as compared to onshore labor costs Reduced costs as compared to offshore full time development team Transparent (“aquarium” vs “black box”) Simplified accounting No problems to visit
  4. 4. ODC Features Servers as a technology and software engineering extension of customer’s main facility Allows the customer to focus on business specific while admin routines are being resolved by the outsourcing services vendor Customer’s 100% ownership Staff replacement within from a week to a month, no special costs
  5. 5. ODC Flip sides and challenge Require an intensive communication due to large geographic distances; poor communication makes ODC use it resources inefficiently and increase overall costs Requires regular assessment of the team to perform necessarily HR adjustments ODC members are not native English speakers in the most cases. May require additional trainings in customer’s business domain Time difference
  6. 6. ODC Flip sides and challenge The customer may need to get familiar with local HR market, their specific, levels of salaries and professionalism to make effective HR decisions if he want to. Startups are often don’t have solid development process the outsourcing vendor has to analyze, recommend and implement… Roles and responsibilities Just enough documentation Agile development, if required Average time to hire talents Middle level engineer: 2 - 4 weeks Senior engineer: 4 - 6 weeks High level leader: 4 - 8 weeks
  7. 7. ODC Creation steps Discuss and create an estimation for the monthly budget. Consider a particular model of building the team: Hiring new ones or based on existing vendor’s employees or mixed model. Figure out requirements for the talent expertise, identify the needs of: Permanent long term employees Contractors for shorter periods of time Plan infrastructure Equipment workstations and servers Office desks and space Network equipment
  8. 8. ODC Creation steps (continued) Budget sign off Build a team: hiring process Set up knowledge transfer, requirements gathering process, training. Set up communication process: Meeting scheduler Reporting Personal communications Set up workflows, management systems Achieve success
  9. 9. Budget components Salaries, bonuses Office space costs Collective taxes Telecommunications costs Bank expenses A fee to the vendor
  10. 10. ODC Service levels What the customer can do: - Review all and any costs, costs analyses, suggestions and negotiations for cost reductions or additional expenses. - HR activities such as: - Conduct interviews - Make hire decisions - Make firing decisions - Motivate - bonuses - Project management: yes, if customer wishes, and may be hidden if the customer wants so - Visit ODC: yes, any time
  11. 11. Thank you Dmitry Bekinin