The document discusses Brian Borack's decision making process in choosing Ukraine as the location for a new development center. Key factors considered were criteria from industry research on things like language, costs, infrastructure, and more. Ukraine was chosen over other finalists like China and Russia. Success of the Ukraine center is attributed to maintaining client focus, clear communication, and taking ownership. The main lesson learned was managing expectations at every step.

1. WHY UKRAINE?
Brian Borack
Chief Operating Officer

2. Topics
1. Decision making process
2. Key success factors
3. Lessons learned

4. Lviv
Zhytomyr
Fastov
Great
Grandfather
Grandfather
Father
Great
Grandmother
Grandmother
Father
Grandfather
Mother

6. ** *
**
Issue – Diversification & Talent
Development Centers (2010) – US, UK, Israel
and India

7. Industry Research on Outsourcing
 Gartner
 Forrester
 And more…
Known Vendors
 Top Outsourcing companies
Industry Friends and Family
 Industry Friends and Family
Steps to Build Criteria for Where to Go

8. Top 10 Decision Criteria from Gartner
*Gartner Research Oct. 2010 Offshore Services Analysis
Language
Government Support
Labor Pool
Infrastructure
Educational System
Cost
Political and Economic
Environment
Cultural Compatibility
Global and Legal Maturity
Data and Intellectual Property
Security and Privacy

9. And Then I Added More…
Travel Accessibility (VISA)
Timezone
Market (Sales Opportunity)
Attrition Rates
Salary Inflation
Experience in the Region
References

10. Now Where to Go – Top 4 Finalists
Eastern Europe
Asia
South America
US On-Shore
….

11. Decision Criteria and Rankings
Argentina China Russia Ukraine
Gartner Criteria Ratings Weight Raw Weighted Raw Weighted Raw Weighted Raw Weighted
Language 3 3 9 3 9 3 9 4 12
Government support 1 3 3 7 7 3 3 1 1
Labor pool 5 3 15 5 25 5 25 4 20
Infrastructure 1 3 3 7 7 3 3 1 1
Educational system 3 3 9 5 15 5 15 5 15
Cost 5 5 25 5 25 3 15 5 25
Political and economic environment 1 3 3 7 7 1 1 1 1
Cultural compatibility 3 5 15 5 15 5 15 3 9
Global and legal maturity 3 3 9 3 9 3 9 3 9
Data and intellectual property security and
privacy 3 1 3 1 3 3 9 1 3
Total Gartner Score 32 94 48 122 34 104 28 96
Additional Criteria
Travel Accessability 1 5 5 1 1 3 3 5 5
Timezone 3 7 21 1 3 5 15 5 15
Market (Sales Opportunity) 3 3 9 7 21 3 9 3 9
Attrition Rates 3 5 15 3 9 5 15 7 21
Salary Inflation 3 3 9 3 9 3 9 5 15
Experience in Region 3 3 9 1 3 1 3 10 30
References 3 3 9 3 9 5 15 10 30
Total Score 29 77 19 55 25 69 45 125
Total Score 61 171 67 177 59 173 73 221

12. And the Winner….
China Almost Won!
1. Talent
2. Cost
3. Education System
4. Language
5. References
6. Attrition
7. Timezone
8. Experience
9. Ease of Travel

13. Final Validation
Business Risks (2010) Threat Level Future Indicator
Political Stability High Improving
Economic High Improving
Infrastructure Medium Improving
Business and Regulatory Environment High Improving
Corruption High Continued
Labor Low Continued
Security – Terrorism Low Continued
Security – Crime Medium Continued
Future Environment Medium Improving
References
3rd Party Risk Validation

14. Final Decision – Partnership or Captive?
Risk Mitigation Strategy with Partner Model
 IP Assignment
 Compliance/Ethics Policy
 Information Security Policy
 Code Reviews
10 Criteria for Contract
 Multi-year Contract
 Defined Cost Increases
 Termination Clause
 SLAs with Penalties

15. Key Success Factors
Client Centric Communication Ownership

16. What is Client Centric?
16

17. Before…

18. Now…

19. What is Communication?
19

20. Before…

21. Now…

22. What is Ownership?
22

23. Before…

24. Now…

25. #1 Lesson Learned
All About Expectations

26. Problem: I want to see my coffee
Requirements for Solution:
1. Must hold hot coffee
2. Maximum amount of coffee to be visible
3. Must sit on my desk

27. 27

29. How Did the Story End?
 Hundreds in ~ 3 years
 Driving Strategic Projects
 High Client Satisfaction

31. Thank you
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