The document compares the total cost of engagement for developer contracts, emphasizing nearshore advantages such as reduced trips, cultural similarities, and improved productivity due to time zone alignment. It suggests that productivity improvements and ease of engagement should guide decisions about developer resource transitions, advocating for a gradual approach. Additionally, it highlights Scio Consulting's competitive advantages in SaaS expertise and agile methodologies, promoting their nearshore model for faster, cost-effective development.

1. Total Cost of Engagement ComparisonJanuary 2009

2. AssumptionsLong term, 3+ developer contract consideredAsian and in-house rates are estimatesFewer trips are required in nearshore model as cultural similarities and experience reduce understanding gapsProductivity is higher with Mexican team primarily due to time zone proximities and real time collaborationExtensive SaaS expertise may contribute to productivity gains as well.Scio Consulting International, LLC. All rights reserved.2

3. Total Cost of EngagementScio Consulting International, LLC. All rights reserved.3

4. Rates for DevelopersScio Consulting International, LLC. All rights reserved.4

5. OverheadScio Consulting International, LLC. All rights reserved.5

6. AttritionScio Consulting International, LLC. All rights reserved.6

7. Calls and TripsScio Consulting International, LLC. All rights reserved.7

8. ProductivityScio Consulting International, LLC. All rights reserved.8

9. Decision and Transition ModelsIf rate differences are NOT the primary driver and productivity improvements and ease of engagement ARE the primary motivators then you should consider change.Ask yourself, how great is the pain?Gradual transitions where nearshore resources are increased while offshore resources are decreased generally work best. We have worked with several and proposals will vary with each scenario.Scio Consulting International, LLC. All rights reserved.9

10. Scio Competitive AdvantageSaaS / RIA/ Web 2.0 FocusedMarket and business model understandingTechnical skillsEcosystem knowledgeProduct FocusedUnderstand the product lifecycle and challengesAgile Development MethodologiesClearer communications and expectation management for quicker, better resultsNearshore Model = easier, cheaper, smarterSame time zone > real-time collaboration > increased productivity > faster time to market & lower costSaves time and money on projects through more efficient communicationsPerform your own TCE calculations here.10

11. Clients11Scio Consulting International, LLC. All rights reserved.These are a few of our satisfied customers. We wouldlove the opportunity to work with you.

12. Scio Consulting International, LLC. All rights reserved.12Development Center: MoreliaPopulation: 1 MillionCapital of Michoacan StateGovernment & college town200 mi from Mexico CityTime Zone: CSTAltitude: 5,000 ftFounded 1541Direct FlightsHouston - 2hLos Angeles - 2.5hSan Francisco - 4hChicago - 4hAnywhere in the US within 6-7 hours

13. Scio Consulting International, LLC. All rights reserved.13Mexico vs. India

14. Scio Consulting International, LLC. All rights reserved.14Gartner’s Country SuitabilitySource: Gartner Study of Qualitative Indicators of Country Suitability

15. Scio Consulting International, LLC. All rights reserved.15Full Lifecycle IT ServicesFrom Ideas to Product

16. Scio Consulting International, LLC. All rights reserved.16Project MeetingsNice surroundings close by…

17. Jeremy BeckVP of Business Development 408.404-3897 x301jbeck@sciodev.com http://www.sciodev.com