This document outlines various IT outsourcing models, highlighting the benefits and methodologies for both project-based outsourcing and building a dedicated team. It emphasizes the advantages of project outsourcing in terms of defined deliverables and cost savings, while also detailing the steps and benefits of creating an offshore development team. Additionally, it introduces Softheme as a service provider with experience in software development, offering flexible engagement terms and a commitment to client needs.

1. Software Outsourcing
Outsource your project or build a team
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2. Table of contents
• IT Outsourcing models
• Outsource your project
 Overview
 Business case
 Advantages
 Pricing models
• Build a team
 Overview
 Structure
 Methodology
 Benefits
• About Softheme

3. IT Outsourcing models
There is no doubt that IT Outsourcing is
the eventual choice for most companies,
as in-house IT staff is expensive, difficult to
motivate and manage, and in many cases
they don’t stay around for very long.

4. IT Outsourcing models
When it comes to IT Outsourcing, there are two main support models:
Traditional IT Outsourcing is a lot like having your own in-house IT staff – except that they
were not on your own payroll. Instead, you pay the IT Outsourcing Company to provide a
certain number of staff for a pre-determined number of hours per week or per month.
Managed Services, on the other hand, is a different model of IT Outsourcing altogether.
Instead of paying for the time of an IT employee, you are paying for your systems to be
properly designed, maintained and supported – regardless of what the service provider
has to do to achieve that.
Ultimately, this is the end objective of any IT department.

5. Outsource your project
Quick overview
Project-based outsourcing is the best fit in case when your
project requirements and deliverables are clearly defined. It
proves to be the ultimate choice for irregular though ongoing
or one-off projects. Project-based outsourcing provides for
greater flexibility and focus, corresponding to changing needs
for resources with pricing being based on the project scope.

6. Outsource your project
Business case
The most typical cases to consider project outsourcing are when:
Cost benefits are to be obtained immediately
Outsourcing for you is rather short/mid-term goal, not a strategy
Long-term investments are not intended
Short-term project could not be handled internally
Missing specific skills/know-how
Project deadlines are constrained

7. Outsource your project
Key advantages
Project-based outsourcing offers a number of advantages, such as:
Project deadline is known before the initialization of project
Fixed costs and fixed budget
Quick realization of cost savings
Access to specific technology expertise and best practices
Avoidance of long-term risk

8. Outsource your project
Typical pricing models
When outsourcing a project, customers usually select one of these three popular pricing models:
Time and Materials
Managed Capacity
Fixed Price
Based on the Based on the pre- A certain quantity
number of hours defined scope of of man-hours or
of work completed work to be man-days at a pre-
per day. completed. negotiated rate.

9. Outsource your project
Typical pricing models: explained
Time and Materials
Typically, the T&M model is preferred when the project scope, specification and
implementation roadmap can’t be decided on the initiation stage of the project and might
vary dynamically during the project implementation. This engagement model helps mitigate
the risks of ambiguity and frequent changes in the project scope.
Fixed Price
This model is best suited for projects with a pre-defined scope and clear specifications and
helps achieve absolutely predictable budget forecasts and fastest time-to-value on your
enterprise systems.
Managed Capacity
This engagement model is most effective when the project outcome is well-defined and
clearly established but the path to the goal is apt to changes.

10. Build a team
Quick overview
When building a team, customers get dedicated resource base that is working
exclusively on their projects and can be managed as if it were their internal
department.
This delivery model is best suitable for software projects with changing requirements,
maintenance and support of large systems, research and development, testing as well
as other types of complex ongoing tasks.

11. Build a team
Core structure
QA Team
Client
Client Project Manager Programming
Co-Coordinator Team
Your In-House
Resources Design and SEO
Team

12. Build a team
Methodology overview
Typical methodology of building an offshore development team looks like the
following six steps:
Step 1. Project Team Creation
Step 2. Onsite-to-Offshore Knowledge Transition
Step 3. Offshore Process Definition
Step 4. Offshore Simulation
Step 5. Offshore Project Execution
Step 6. Review the project deliverables and identify
the weak areas of the implementation.

13. Build a team
Methodology overview
Step 1. Project Team Creation
• Sign off on a Scope Agreement
• Identify key team members for a project
Step 2. Onsite-to-Offshore Knowledge Transition
The main goal for this phase is to understand client’s requirements,
business procedures, company standards, the specific systems’ IT
environment as well as the approach that will be used. It's a huge
learning curve but once you get over it, it is much easier to move
further to the next step.

14. Build a team
Methodology overview
Step 3. Offshore Process Definition
On this stage, performing customization of the methodology for
the client’s specific requirements should be done.
Step 4. Offshore Simulation
• Simulate client’s IT environment at an Offshore Development Center
• Review and confirm the Service Level Agreements (SLAs)
• Build the Offshore Infrastructure (IT, software, and physical)
• Set up the Offshore Team (project management, development, QA)
• Perform metric-defined training of the Offshore Development Team

15. Build a team
Methodology overview
Step 5. Offshore Project Execution
Start executing the project according to the agreed project
plan for the first 6 month period.
Step 6. Review the project deliverables and identify the weak
areas of the implementation
• Implement the feedback
• Have the first year Service Agreement review

16. Build a team
Key benefits
Building an offshore team has a number of benefits that are listed below:
No long-term initial investments, flexible pricing, quick ROI
Full operational control, complete flexibility of operations
Readily available facilities/infrastructure at hand
Consistent but flexible team
Seamless integration into customer's workflow and processes
Accumulation of customer-specific knowledge
Strong service delivery and methodology practices

17. Thank you
Keep the information from this presentation in mind, carefully analyze your business
needs, discuss your preferences with a potential outsourcing partner, and you will
always be successful in selecting the right IT Outsourcing Model for your business.
Learn more about Softheme >

18. About Softheme
Core Services: Company Fast Facts:
• Software development • Founded in 2006, privately owned, UA ownership
• Software re-engineering • More than 1,000 successfully delivered projects
• Enterprise-level application development • 250+ developers and testers in 5 offices in Kiev
• Web development • 80% of clients selected Softheme basing on customer
recommendations
• Mobile development (iOS, Android, Blackberry, etc.)
• 30% certified specialists (Microsoft .NET, Sun Java, etc.)
• Software maintenance & support
• Customers in the USA, UK, Japan, Western/Eastern Europe
• Independent testing & QA range from start-ups to Fortune 500 corporations
• Remote system administration / security audit
• Web marketing, marketing automation
• Dedicated development teams Application Domains:
• ERP / CRM / Document management
• Website / blogs / e-commerce
• Social networks with video
• Data analysis / data security
• Finance
• SaaS, and more
Technologies: C# .NET, Java, C/C++, ASP.NET, PHP, Ruby, Python, Delphi, Oracle, MS SQL, mySQL, JS/Ajax

19. About Softheme
Terms of Engagement: Softheme Mission:
• Cost-free project quote, free pilot project Softheme mission is to create better applications
• Confidentiality / IP rights reserved for a better world.
• Fixed-price, fixed-team, time & materials Softheme does not save on specialists and
contracts equipment but rather optimizes process and
• Rates starting at 15 USD resource/hour operations applying profound industry experience
• Flexible cancellation policy and knowledge.
Testimonials:
“We selected Softheme basing on: (1) Softheme's “Over time we had completed several projects from start
experience in conducting Data Mining projects, their to finish with Softheme. From the initial analysis of the
experience in previous implementations of algorithmic project scope to detailing the required functionality to
components, rule based and real-time expert systems, implementation and on-time delivery, Softheme required
data query optimization, (2) Understanding of our our input mostly on the changes to the initial design and
SOWs, (3) Human resources and infrastructure.” pretty much took care of the rest.”
Mark F. on his experience with Softheme’s C# John S. on his experience with Softheme’s Web/Mobile,
developers C#/C++ and QA units

20. Contact us
USA Phone: (+1) 202-657-5672
UA Phone: (+380) 44-209-4474
skype: softheme
e-mail: info@softheme.com
Contact us now for a FREE quote!