Build Operate Transfer BOT and Other Outsourcing Models

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Build Operate Transfer (BOT)and Other
Outsourcing Models

• Leveraging India Offshore Models for Competitive
  Advantages

Rahul Chitko Executive Director IMC Global
Technology Services Pvt. Ltd
August 27, 2007
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About IMC Global Services

• IMC Global Services (IGS) was founded in 1994 and
  is a wholly owned subsidiary of U.S. based IMC,
  Inc.
• IGS is located in Pune, India, which has a large
  number of engineers and IT specialists
• IGS specializes in providing high quality IT and
  Legal Outsourcing Services at highly competitive
  rates
• Custom Software Development
• Software Maintenance
• Product Customization
• Test Outsourcing
• Technology Consulting
• Helpdesk Services
• Website Development
• Support Maintenance
• Legal Outsourcing

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Outsourcing Model Considerations
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India IT and Legal Outsourcing Models

• Time Material
• The project cost is a function of the total
  project time relative to the resources deployed
• Milestone Based Billing
• For clients wanting to mitigate risk, payment
  schedules are established to correspond with
  certain milestones being reached
• Fixed Bid (or Project-Based Billing)
• Only offered in core-competency areas when the
  scope and project specifications are clear, this
  option eliminates most client risk
• Build-Operate-Transfer (BOT) Model
• IGS establishes a dedicated facility which
  operates as an extension of the clients own
  facility
• Client then has various options to have IGS
  continue running the facility or to ultimately
  assume direct control of the facility

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Build-Operate-Transfer (BOT) Model

• Build
• IGS sets up the facility and infrastructure,
  staffs the development center, establishes
  operating guidelines and knowledge transfer
  procedures
• Operate
• IGS manages the offshore organization including
  Program Management (PM), development, QA,
  maintenance, enhancements and ongoing project
  support
• Transfer
• IGS registers a new India subsidiary for the
  client, transfers all assets and relinquishes all
  direct control of operations to the client

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IGS BOT Solution is a Strategic Decision

• A short-term decision to lower costs or to
  temporarily fill jobs is a tactical one
• A longer-term commitment to decrease delivery
  costs, improve capabilities and to reduce overall
  project risk is a strategic one

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Benefits from BOT Model

• Faster Time to Market
• Lower Establishment Costs
• Risk Reduction
• Flexibility
• Process Expertise
• Future Option to Own Facility
• Quality Assurance
• Knowledge Retention
• Rapid Scaling of Operations
• Wider Service Offerings
• Ability to Retain Intellectual Property Rights

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Steps to Begin BOT Model

• Once a client has typically given a 3 month
  commitment, the following steps will take place
• Assemble a dedicated team of professionals
• Provide all facilities and infrastructure
• Manage the entire set-up process
• Absorb all risks
• Provide a devoted team for a determined period
• The set-up process to establish the
  infrastructure and build a qualified, team of
  individuals takes 10-12 weeks

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Standard Rate Structure

• IMC Global Services Rates
• Project Manager - 25-35/Hr
• Developer - 22-32/Hr
• Network Administrator - 25-35/Hr
• QA - 20-30/Hr
• Tech Writer - 17-27/Hr
• IMC Global Services Overseas Travel Rates
• Per Diem - 40-50/Day
• Air Fare - At Actual
• Hotel - At Actual
• Local Transport - At Actual
• Immigration Cost - At Actual
• Note IGS imposed charges for any India-based
  team member required to travel outside of India.

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IGS Outsourcing Models

• Compared with onsite teams and traditional
  outsourcing, 30-50 savings are common
• Deciding the right delivery model for your
  company is the 1 challenge
• With proper controls and communication, a
  powerful and mutually beneficial partnership can
  be forged

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Tips for Successful Global Delivery
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Thank You

• Rahul Chitko
• Executive Director
• IMC Global Technology Services Pvt. Ltd
• rchitko_at_imc.com
• 1-571-297-5475
• 91-20-30619700