1) Common challenges for IT business development include lack of qualified specialists, high salaries, and administrative burdens like taxes and insurance. Outsourcing is often seen as a solution but may fail if the true issues are misdiagnosed. 2) Large outsourcing firms can experience bureaucracy, lack of adaptation, inflated costs, and low engagement. The fixed quote model for outsourcing also has drawbacks like inflexibility, inconsistencies from changing developers, and misaligned incentives between clients and contractors. 3) After experiencing problems with the fixed quote model, the author's company transitioned to a dedicated development team model with carefully selected candidates, training, engagement practices, agile methodology, communication processes,

1. WHAT INTERFERES WITH
IT-BUSINESS DEVELOPMENT?

2. #1 Lack of qualified specialists
in the area
#2 High salaries of local
employees
#3 Taxes, medical insurance,
administrative and recruitment
challenges

3. Outsourcing is a logical solution
to these challenges

4. However, if the issue
has been misdiagnosed,
outsourcing may fail
to achieve the desired
outcome

5. “GIANTS” of IT-outsourcing

6. Bureaucracy and
lack of adaptation
to the processes
Inflated costs due
to company’s brand
and sizable staff
Low emotional
engagement

7. IT-outsources with
a FIXED QUOTE model

8. 404
#1
Switching developers mid-
stream, possibly resulting
in inconsistencies
#2
No flexibility.
Any request results
in terms and cost changes
#3
The Client wants to get
more and pay less. The
Contractor is willing to do
less and get more

9. OUR
PERSONAL
EXPERIENCE

10. When we used the Fixed Quote
model in 2008, we:
Were overloaded, working on
40 projects simultaneously;
Performed poorly, land had little
job satisfaction.

11. It was the
RIGHT TIMETO
something!CHANGE

12. We worked
on ourselves for
7 years!

13. Came to a dedicated
development team model

14. The only efficient method
for long-term projects

15. Learned to manage
the work of dedicated
development teams,
superior in efficiency
to the local ones
NEW TASK
Task 1
Task 2
Task ..
Task N

16. How?

17. Efficient process
of searching and
selecting candidates
for specific tasks

18. • Experienced recruitment department
• Kharkov is an IT-specialist hotbed
• Best technical universities in Ukraine

19. Improve skills

20. • Individual development programs
for employees
• Seminars, practicums, trainings
• Corporate English courses
• Library

21. Engaging
the teamLOGOLOGO
LOGOLOGO

22. • Transferring elements of the Customer’s
corporate culture to the team. Eliminating
the distinction between outsourced and
internal departments
•Arranging business trips to the customer’s
location for better insight into the client’s
business
LOGOLOGO

23. Using Agile
development
methodology

24. • Cooperation with the Customer
and satisfying individual requirements
are our main priorities
• Readiness to changes
• Looking for ways to improve efficiency

25. Ensuring
effective
communication

26. • Supervisor is responsible for the project.
In case the Customer does not dedicate
a project manager, we assign one of our staff.
• Account-manager. Not a single team member
is involved into solving business issues.
• Arranging regular calls and providing reports.

27. Amicable
atmosphere

28. • Comfortable offices;
• Corporate celebrations and events;
• Sports reimbursement.

29. Our employee
TURNOVER
RATE
is less than

30. Our work teams are
Highly
qualified
Сommitted
to projects
Flexible
in their
approach
Motivated

31. DISTRIBUTED DEVELOPMENT
TEAMS professionalism, smartly-
arranged processes and constant
enhancement CAN RESULT
IN EFFICIENCY superior
to the local teams

32. And certainly much more
efficient than teams
using Fixed Quote
models
Fixed Quote models
Distributed
development
teams

33. Nevertheless outsourcing
financial appeal holds true!

34. We develop and refine
IT-business success!