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...
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Webinar - Global It Shifts To Spain

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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 />

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