Global IT ShiftstoSpain<br />
Founded in 2008 by the AEC (the Spanish association of consulting firms)<br />AEC members represent over 80% of the total ...
Source: Vanson Bourne, OmniBoss Report February 2010<br />
Talking points<br />Recessionary pressure continues to dominate IT spending<br />New ways of contracting emerge linked to ...
Agenda<br />Why executives need global delivery strategies<br />Firms move nearshore to solve offshore issues<br />Spain e...
Europeans vote with their wallets<br />Desire to increase applications and infrastructure outsourcing<br />Watch for a sur...
Understanding Global Delivery <br /><ul><li>Integrating rich domain expertise, broad technical skills, and project managem...
Agenda<br />Why executives need global delivery strategies<br />Firms move nearshore to solve offshore issues<br />Spain e...
The changing offshore location dynamics<br />Many countries are jumping on the offshore bandwagon as an economic developme...
Governance<br />Distance to<br />vendor<br />Aggressive blends exacerbate internal risks<br />External risks compound inte...
Lack of management
Weak IT processes/outsourcing process maturity (requirements gathering, change management, specification writing, testing/...
Internal customers unprepared for the rigidity of the outsourcing relationship
Improper project selection
Unrealistic expectations
No recognition that vendors lack business knowledge </li></ul>Vendor stability<br />Time zone<br />differences<br />Cultur...
European firms seek nearshore skills<br />Some countries are more mature than others<br />Mature nearshore delivery hubs i...
Agenda<br />Why executives need global delivery strategies<br />Firms move nearshore to solve offshore issues<br />Spain e...
Skills, scale and location underpin Spain’s appeal<br />Large skilled IT labour pool<br />Check out the ratios<br />Indust...
IT salaries feed lower rates<br />
Graduates feed a large local IT labour Pool <br />
Which firms should consider a move to Spain<br />Spain as an alternative to India<br />Make an inventory of current applic...
Spain as an alternative to India? Decision steps<br />February 2009 “Complementing India With Nearshore Strategies: Spotli...
Spain as a source of complementary skills?<br />Do your internal preparation<br />Make sure you have a transformation road...
Upcoming SlideShare
Loading in …5
×

Webinar - Global It Shifts To Spain

551 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
551
On SlideShare
0
From Embeds
0
Number of Embeds
18
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Some countries are more mature than others and offer service delivery locations that underpin global deliveryPoland and the Czech republic were in the first wave of new entrants into Europe and are mature nearshore delivery hubs Romania and Bulgaria—cost structures and currency have a role to play in their location attractivenessRussia rich in software development expertise; Spain features industry expertiseMany European service providers focused on Poland; the pure plays have gone further East Vendors begin by checking country stability; infrastructure quality, cultural affinity and the quality of local labour
  • Webinar - Global It Shifts To Spain

    1. 1. Global IT ShiftstoSpain<br />
    2. 2. Founded in 2008 by the AEC (the Spanish association of consulting firms)<br />AEC members represent over 80% of the total ITC turnover. <br />Employ over 60% of the professionals in the sector.<br />The organisation is backed by the Spanish government <br />Value Shore aims to promote and simplify sourcing to Spain.<br />We ensure companies have the information to shortlist prospective partners<br />organising and funding site visits<br />access to lawyers and contract specialists<br />advising on the potential tax breaks <br />independent quality control<br />
    3. 3. Source: Vanson Bourne, OmniBoss Report February 2010<br />
    4. 4.
    5. 5. Talking points<br />Recessionary pressure continues to dominate IT spending<br />New ways of contracting emerge linked to sourcing maturity<br />Firms seek common service essentials from globally configured sourcing deals<br />Offshoring no longer just equals “India” but many European minds fixate on the Indian pure-plays<br />Clients seek to reduce risk and investigate near-shore options closer to home<br />
    6. 6. Agenda<br />Why executives need global delivery strategies<br />Firms move nearshore to solve offshore issues<br />Spain emerges as a credible offshore destination<br />
    7. 7. Europeans vote with their wallets<br />Desire to increase applications and infrastructure outsourcing<br />Watch for a surge in leveraging global service delivery<br />
    8. 8. Understanding Global Delivery <br /><ul><li>Integrating rich domain expertise, broad technical skills, and project management discipline across a network of low-cost locations through consistent and robust processes, tools, and infrastructure to maximize the timely delivery of superior IT and BPO solutions</li></li></ul><li>Service scope sticks on application work<br />August 2009 “How Europeans Tune Global IT Service Delivery Models”<br />
    9. 9. Agenda<br />Why executives need global delivery strategies<br />Firms move nearshore to solve offshore issues<br />Spain emerges as a credible offshore destination<br />
    10. 10. The changing offshore location dynamics<br />Many countries are jumping on the offshore bandwagon as an economic development strategy<br />But just because the Economics Minister says it’s an offshore location does not make it so<br />Country assessments focus on government stability and infrastructure quality<br />But not important issues like cultural affinity for offshore work and the scale and health of indigenous vendors<br />
    11. 11. Governance<br />Distance to<br />vendor<br />Aggressive blends exacerbate internal risks<br />External risks compound internal risks<br />External risks<br />External risks<br /><ul><li>Lack of governance
    12. 12. Lack of management
    13. 13. Weak IT processes/outsourcing process maturity (requirements gathering, change management, specification writing, testing/QA, SLAs, documentation)
    14. 14. Internal customers unprepared for the rigidity of the outsourcing relationship
    15. 15. Improper project selection
    16. 16. Unrealistic expectations
    17. 17. No recognition that vendors lack business knowledge </li></ul>Vendor stability<br />Time zone<br />differences<br />Cultural and language<br />differences<br />Country<br />infrastructure<br />Management<br />challenges<br />Security<br />Source: Forrester Research<br />
    18. 18. European firms seek nearshore skills<br />Some countries are more mature than others<br />Mature nearshore delivery hubs in Eastern Europe <br />Russia rich in software development expertise<br />Spanish industry expertise<br />Many European service providers focused on Poland<br />Pure plays have gone further East<br />What counts in deciding a nearshore location<br />Country stability; infrastructure quality, cultural affinity and the quality of local labour count<br />What about Spain?<br />
    19. 19. Agenda<br />Why executives need global delivery strategies<br />Firms move nearshore to solve offshore issues<br />Spain emerges as a credible offshore destination<br />
    20. 20. Skills, scale and location underpin Spain’s appeal<br />Large skilled IT labour pool<br />Check out the ratios<br />Industrialized software factories<br />Check out how the rates compare<br />Domain expertise<br />Check out the large firms punching above their weight<br />Potential to scale with Latin America<br />Spain/Latin American delivery model offering skilled pool<br />
    21. 21. IT salaries feed lower rates<br />
    22. 22. Graduates feed a large local IT labour Pool <br />
    23. 23. Which firms should consider a move to Spain<br />Spain as an alternative to India<br />Make an inventory of current applications<br />Document current best practices<br />Pilot applications with the right critical mass<br />Invest in the business analyst function<br />Spain as a source of complementary skills<br />Specific functional process expertise <br />Investigate the industry and IT service capabilities<br />How can the model scale through Latin America<br />
    24. 24. Spain as an alternative to India? Decision steps<br />February 2009 “Complementing India With Nearshore Strategies: Spotlight On Spain”<br />
    25. 25. Spain as a source of complementary skills?<br />Do your internal preparation<br />Make sure you have a transformation roadmap—how you will move<br />Make sure you have sufficient sourcing deal governance<br />Operational control of the nearshore service delivery model<br />
    26. 26. Focus on the site visit and locality for success<br />Site visits are an essential part of the sourcing process<br />Meet them on Spanish soil<br />Leverage the regional autonomy <br />Offers negotiation levers on business tax rates<br />Drive discounts on a deal with location rebates<br />Seek out local support organizations <br />For advice and back up<br />Value shore team; Invest in Spain<br />
    27. 27. If you remember nothing else<br />Global delivery is used in most large outsourcing deals<br />1<br />European firms need nearshore options<br />2<br />Spain offers a credible nearshore destination<br />3<br />
    28. 28. Check out the Valueshore Bulletin:<br /><ul><li>Quarterly bulletin targeted at IT and sourcing decision makers
    29. 29. Includes
    30. 30. Executive Q&A
    31. 31. Regular features
    32. 32. Contract news
    33. 33. Spanish IT news</li></li></ul><li>Thank you<br />Euan Davis<br />eudavis@forrester.com<br />Complementing India With Nearshore Strategies: Spotlight On Spain: http://www.forrester.com/Research/Document/0,7211,46904,00.html<br />
    34. 34. Final Questions, Comments, Discussion?<br />

    ×