WHY UKRAINE?

Brian Borack Chief Operating Officer

Topics

1. Decision making process

2. Key success factors

3. Lessons learned

LvivZhytomyr

Fastov

Great Grandfather

Grandfather

Father

Great Grandmother

Grandmother

Father

Grandfather

Mother

** ***

Issue – Diversification & Talent

Development Centers (2010) – US, UK, Israel and India

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

Top 10 Decision Criteria from Gartner

*Gartner Research Oct. 2010 Offshore Services Analysis

LanguageGovernment SupportLabor PoolInfrastructureEducational SystemCost

Political and Economic Environment

Cultural CompatibilityGlobal and Legal MaturityData and Intellectual Property Security and Privacy

And Then I Added More…

Travel Accessibility (VISA)TimezoneMarket (Sales Opportunity)Attrition RatesSalary InflationExperience in the RegionReferences

Now Where to Go – Top 4 Finalists

Eastern EuropeAsiaSouth AmericaUS On-Shore….

Decision Criteria and RankingsArgentina China Russia Ukraine

Gartner Criteria Ratings Weight Raw Weighted Raw Weighted Raw Weighted Raw WeightedLanguage 3 3 9 3 9 3 9 4 12Government support 1 3 3 7 7 3 3 1 1Labor pool 5 3 15 5 25 5 25 4 20Infrastructure 1 3 3 7 7 3 3 1 1Educational system 3 3 9 5 15 5 15 5 15Cost 5 5 25 5 25 3 15 5 25Political and economic environment 1 3 3 7 7 1 1 1 1Cultural compatibility 3 5 15 5 15 5 15 3 9Global and legal maturity 3 3 9 3 9 3 9 3 9Data and intellectual property security and privacy 3 1 3 1 3 3 9 1 3Total Gartner Score 32 94 48 122 34 104 28 96

Additional Criteria Travel Accessability 1 5 5 1 1 3 3 5 5Timezone 3 7 21 1 3 5 15 5 15Market (Sales Opportunity) 3 3 9 7 21 3 9 3 9Attrition Rates 3 5 15 3 9 5 15 7 21Salary Inflation 3 3 9 3 9 3 9 5 15Experience in Region 3 3 9 1 3 1 3 10 30References 3 3 9 3 9 5 15 10 30Total Score 29 77 19 55 25 69 45 125

Total Score 61 171 67 177 59 173 73 221

Rankings 3 3 2 2 4 4 1 1

And the Winner….

China Almost Won!

1. Talent2. Cost3. Education System4. Language5. References6. Attrition7. Timezone8. Experience9. Ease of Travel

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

References3rd Party Risk Validation

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

Key Success Factors

Client Centric Communication Ownership

What is Client Centric?

16

Before…

Now…

What is Communication?

19

Before…

Now…

What is Ownership?

22

Before…

Now…

#1 Lesson Learned

All About Expectations

Problem: I want to see my coffee

Requirements for Solution:

1. Must hold hot coffee2. Maximum amount of coffee to be visible3. Must sit on my desk

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How Did the Story End?

Hundreds in ~ 3 years

Driving Strategic Projects

High Client Satisfaction

Thank you

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