Blockchain network for IT workforce and servicesCompany overview / December 2018
Enterprise Future of Workpowered by www.it-suppliers.com
Workforce externalization is a sustainable trend
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Source: combined PwC (“Workforce of the Future” 2018), SAP (2017) and industry media
… and IT functions are leading this trend
Share of funds allocated and work done by(in large corporates in developed countries, aggregate average)
Internal workforce (employees)
External workforce (contractors, temps, etc.)
PerformanceExternal workforce has often higherproductivity due competitive natureand flexible work environment.
FlexibilityHeadcount and budget flexibility is key for large corporates and SMEs in today’s volatile market.
Cost savingsFaster access to specialized top talent at better cost than in-houseteams.
80%
2000 2020
20%
60%
40%
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External workforce get 70% of all IT services budgetsIT budget of just one large global company* indicative, USD bln peryear
— hundreds of niche IT projects— faster contractdecisions— project budget 0.1-10.0 mln USD— duration 3-36 months
* indicative example, applicable to most FTSE 500 or DAX 30 company
— dozen bigger IT projects— years in decision making— budget 10+ mln USD— duration 3-5 years
Total IT services External
1.5(100%)
1.0(70%)
Internal
~0.5(30%)
Outsourcing
0.5(35%)
0.5(35%)
StaffingOur existing business with proven market fit (www.it-suppliers.com)
Potential growth area
200just in EuropeEvery large company is a separate market for thousands of small and mid-sized IT suppliers
x
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1.6 trln USDglobal market(Gartner)
Who we are?Servicebit is a blockchain-evolution of www.it-suppliers.com. Founded in 2014 in Zurich (Switzerland), it is a leading supply-chain management SaaS focusing on external IT used by 6‘000+ suppliers and 200+ large and SME clients.
1+ mlnverified IT experts employedat over 6k suppliers globally on it-suppliers.com
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ASIA, CIS, MIDDLE EAST 3000 +Suppliers
SOUTH AMERICA 130 +Suppliers
AUSTRALIA30 +Suppliers
AFRICA100 +Suppliers
USA, CANADA, MEXICO400 +Suppliers
EUROPE2’900 +Suppliers
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Focus on bigger IT projects for enterprises and SME
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1 day 3 months 24 months Project duration
ou
tso
urc
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pro
ject
bu
dg
et
EU
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0
500k
50k
5k
500
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IT staffing and outsourcing (IT-Suppliers, Toptal, etc.)
Servicebit focus: • Enterprise/SME client focus • Highly-desired stable business
for suppliers and experts• Back-office automation is key
Freelance(Upwork, etc.)
Gigs(Fiverr)
Freelancing and gig platforms:B2C nature of business no barriers to entry (reason for so many freelancing platforms)
Blockchain solves key painsof IT service project stakeholders
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Sourcing relevant external talent with proven skills through social networks and HR agencies is slow and expensive
High-cost administration of numerous external workforce and supplier relationships (incl. back office, reconciliation, purchase orders, timesheets, invoicing, payments)
Unable to hire best talent due to limitedreach of existing preferred suppliers and
risk-management limitations
Purpose-built blockchain network with direct access to verified and available workforce
Smart contracts provide unprecedented efficiency and scalable automation of back-office — 90% efficiency gain!
Any smaller workforce or supplier may belegally represented by blockchain network itself, andcan be engaged in projects and contracts with large enterprise clients
Business (client) perspectiveKey pains of Businesses/Clients: Blockchain solution:
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Blockchain solves key painsof IT service project stakeholders
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Lower income due to 15%-25% averagecommisions of internediaries and agencies
Poor payment terms, complicated (long) work approval process – up to 60 days and more
to wait for funds
Non-transferrable reputation and project history — on existing centralized platforms reputation stars and history are not controlled by workforce, and cannot be transferred
Efficient blockchain network with low fees (2-3%) and no intermediaries
Smart contracts provide possibility for the immediate work approval action that
is simultaneously a payment to workforce!
Blockchain allows workforce to own and monetize their profile, reputation, past project history, and allows to move between platforms
Workforce perspectiveKey pains of Workforce/Suppliers: Blockchain solution:
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Servicebit Network key features
Network does it all
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Direct matching: live network purpose-built for IT suppliers and workforce connecting with large corporate and SMEs
Active community: token powering active community interactions and governance
No small-supplier problems: network’s own legal entity acting as counterparty to larger businesses
Reputation, profiles and projects history
Verifiable profiles: trust in reputation and track record - audited by actual clients and community. Reputationmetrics based on AI + human feedback
Back office automation
Digital automated paperwork: smart-contracts driven approval of work, reconciliation, invoicing and payments in crypto or fiat
Revolutionary efficiency: up to 90% efficiency gain for back office via smart contracts
Custom admin dApps: flexible workflows for all stakeholders
Confirmed projects history: Community verified projects history –audited by project owners
Transferrable reputation and data: 100% ownership and unrestrictedtransfer of own reputation and history
FINMA compliant solution
Summary of benefits to stakeholders
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Business
Less expensive and moreefficient sourcing of workforce
Improved trust in profiles and better traceability
Smart contracts reduce back-office cost by 90%
Workforce
Earlier payments with no fees
Better project fit — no irrelevant requests
Monetize own profile
Better contracting experience through back-office automation
Increase in volume/revenue partly due to decrease in fees
Enterprise customers and SMEs increase share of external workforce
#1 position to drive furtherAI adoption for IT
Network
Token logic to foster positive community interaction
Principal network architecture
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Servicebit Network core dApp
WorkforceBusiness
Servicebit network is planned to run on a public blockchain (e.g. Plasma), but we also envisage integrations with private blockchains of large corporate clients
Databasecloud and distributed(IPFS, BigchainDB)
Existing and future blockchain networks(Ethereum and private blockchains
of larger enterprise customers)
Internal web-app and internal APIs
Project matching Team management
Community interactions Back office and payments
External apps APIJIRA, Asana, YouTrack,etc.
Project management (only project phases and progress data)
Technical audit by Blocksmithblockchain advisory and
development studio
Development roadmap
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2014 2017 Feb 2018 Aug 2018 4Q 2018 1Q 2019 3Q 2019
IT-Suppliers founded in IT-Suppliers products and Servicebit concept born Network architecture and Working on first version MVP on Ethereum Launch of initial publicZurich, Switzerland community grows to 200+ following requests from key features designed and of MVP on Ethereum with pilot users version of Servicebit
large clients, 6’000+ IT both workforce and verified with key Networksuppliers and 1+ mln businesses stakeholdersqualified workforce. Annualrevenue growth x6.
2H 2019- Initial public version on Ethereum mainnet (focus on workforce matching)
- Active support for network development (incl. through token airdrops and increased micro-bonuses)
1H 2019- Servicebit commercial prototype on testnet
- Pilot projects with few existing Clients of IT Suppliers
1H 2020Development of reputation and profile verification back-end
Payments in tokensimplemented as part of publicServicebit
Initial back-office features automated via smart contracts
2H 2020First version of hybrid reputation system(AI + human feedback)
workflows for larger clients thatwill further increase businessvolume for Workforce
smart contracts (engagement,approvals, reconciliation,payments)
Further development of smartcontract automation
product features (external andinternal workforce managedthrough one dApp)
1H 2021Major community development, incl. with large enterprise and smaller SME
In-depth integration withleading project managementtools
Further development of smartcontract automation
2H 2021Major community development, incl. with large enterprise and smaller SME
Development of custom
Most back-office is run via
Joint team management
Token economics
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Servicebit ecosystem
Contracts management and purchase orders
Financial reconciliation and payments
Work approval
Smart Contract back-office automation
in SRVB token
Pay for Workforceservices
in fiat (+XX% fee)
ServicebitSRVB fiat
“native” exchangeSRVB airdrops to Workforce
to support network growth
Receive bonuses for sign-up and consistently high reputation
Earn/spend SRVB- other profiles review
- history verification
- high reputation
- dispute resolution
- etc.
Receive bonuses for projects volume and quality
Pay Servicebit fee 2-3% in SRVBPay for premium services
Pay for premium services
Workforce Business
CommunityWorkforce and Business
SRVB token is…
only used as efficient means of payment within closed ecosystem. Prices and rates fixed in fiat currency
eventually bought / sold on spot market right on Servicebit front-end (through deep integration with a third-party crypto-fiat exchange)
Token use cases
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Pay for Information Pay for Servicebit Pay for Work
Rewarded for using platform, projects volume and quality (less cancelled projects — lower fees)
Incentivised for IT integration with Servicebit
Rewarded for project verification and references
Workforce
Business
Sign-up bonus for joining the network
Micro-bonuses for consistently high reputationPay/earn for providing feedback, reputation, etc.
Pay project fee 2-3% and for premium services
No project feesPay for premium services(coaching, conferences)
Pay for services in tokensor fiat (with discount provided certain token balance)
Receive payments in fiator tokens (faster, no bank fees)
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Workforce: search workflow
Client’s request for Workforce
Automatic push to relevant Suppliers
Preferred Suppliers6K+ Marketplace Suppliers 1Mio+Workforce
Supplier’s own manual search, screening, interviewing
Today
Step1 Step2 Step3 Step4 Step5
Verified Workforce SHORTLISTdelivered to Client
Client’s manual screening, reference checks, interviews
Step6
Contract Drafting & Management
Step7
Work Approval, Financial Reconcilliation, Payment processes
Tomorrow
Step1 Step2
Client’s request for Workforce
Automatic push to relevant Workforce / Supplier
Step3 Step4
Verified Workforce SHORTLISTdelivered to Client
Interviews
Step5
Enter Smart Contract
+ BLOCKCHAIN:
PreferredSuppliers / Workforce
20K+ Marketplace Suppliers
10Mio+Workforce
+ BLOCKCHAIN:
Verified profiles, screening is done
Confirmed projects history
Verified reputation
Rates and availability
+ BLOCKCHAIN:
Terms & Business Rules
Simultaneous:
- Work Approval
- Financial Reconciliation
- Payment
Blockchain-level trust in workforce profile makes screening and reference checks obsolete. Instead focus on in-person
interviews and project planning.
90% more efficient
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Workforce: backoffice workflow
Today
Step1 Step2
Budget release– issue Purchase Order
Draft Contract
3-4 intermediaries and banks
Heavy and expensive international transactions
Step3
Contract signing process, incl. scanning andpaper work
Step4 Step5
Workforce’s Submission of Timesheet
Client’s Timesheet scanning
Step6
Client’s Timesheet approval (Work Approval)
Step7
Client’s Invoice processing
Tomorrow
Step1 Step2
Budget release:Issue Purchase Order
Enter
SMARTCONTRACT
Including:Terms & Rules
Work approval
Financial reconciliation
Payment done
Step8
Invoice scanning & matching
Step9
Payment process with multiple intermediaries
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Team
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Marc Carletti / Business Development Enterprise segment
Ex-CEO of BT and SIX, focus on digital transformation, growth strategies, banking cyber-security and online strategies. MBA in Information Technology.
Valérie de Montmollin / Workforce legal and administration
Entrepreneur and renowned expert with over 25 years of experience in outstaffing, payrolling, recruiting process outsourcing. Secures the legal and financial aspects for all workforce and clients.
Igor Putrenko / Founder, Business Development and Operations
Successful serial entrepreneur, focusing on IT, Supply Chain and Professional Services. Over 20+ years of the relevant industry experience. MSc in Computer Science.
Pavel Volichenko / Product and Business Development
Tech entrepreneur with VC/PE investment management background. Since 2014 invested in and developed two Swiss startups in online travel and computer graphics. MSc in Applied Mathematics.
Dmitry Volokh / IT development
Software development lead with over 20 years of experience. Managed 100+ people external development teams, which is crucial for building Servicebit.
One of key PwC partners in Switzerland for over 30 years. Currently counsel at Wenger &Vieli law firm. President of the HSG Alumni Association, one of the largest and most active alumni networks in Europe.
Urs Landolf / Advisory Board MemberHSG Alumni president, PwC for 30+ years
Former Chief Procurement Officer of Avaloq and Adecco — leading worldwide staffing company. Vast experience in Supply Chain area focusing on IT and Workforce / Professional Services.
Paolo Volpicelli / Advisory Board MemberSourcing, Procurement and Staffing Expert
Rafael Jegundo / Technical lead, blockchain
Senior blockchain and machine learning software architect with years of hands-on development and global team management expertise.
Contacts
www.servicebit.io Igor PutrenkoFounder, CEO of IT-Suppliers AG
Feldeggstrasse 4 [email protected] ZurichSwitzerland
+44 20 3290 7003 (UK)+1 415 800 4533 (USA)+41 44 586 34 00 (Switzerland)+852 8170 0201 (Hong Kong)