Intellect Uk Presentation Final

©2009 Symphony Service, Corp. All Rights Reserved. Symphony Services is a registered trademark of Symphony Service Corp. All other trademarks and service marks used herein are the property of Symphony Service Corp.

or their respective owners and may not be used without written permission.

High Impact Global Product Engineering Solutions

www.symphonysv.com 1

Offshore Product Development TrendsSymphony ServicesIntellect UK 2009

February 24, 2009

©2009 Symphony Services Corp. All Rights Reserved . Proprietary and Confidential www.symphonysv.com 2

Symphony ServicesEngineering Successful Companies

Commercial-Grade Software

(ISVs and e-business)

Complete Product Development Lifecycle

capabilities

Embedded Systems and Software

Complete Product Development Lifecycle

capabilities

Engineering Services

CAD/CAM

Mechanical Design

Fluid Dynamics


1. OPD is not ITO

Trends and Observations


Different Mission – Understanding what drives Product companies is the key– IP Protection

– Time = Release Dates

– Customer Facing v. Internal Applications

Product Development is NOT IT Services

Release Date

BudgetMRD/PRD

Development = ƒ(Release Date, PRD, R&D budget)

IP Protection Principles


Different Mission – Understanding what drives Product companies is the key– IP Protection

– Time = Release Dates

– Customer Facing v. Internal Applications

Different Skills – Product Development Rigor

– Background & Quality of Talent

– Dedicated Development teams Non-transient


QA Leads

Sr Dev Engrs Sr QA Engr

GOC Mgr

QA Manager

EVP Engineering

Dev Engrs

CoEs / QMS / HR & Recruitment / IT / Finance

ConfigSupport

QA Engr

Dev Mgr 1 Dev Mgr 2Software Architect

Sr Dev Engrs

Dev Engrs

GOC dovetails into the Engineering Department

Access to Centers of Excellence/Practice Lines for troubleshooting and/or project-

based needs

Symphony GOC is an extension of our client’s engineering organization

Dev Leads Dev Leads

Head of Dev Head of QA Head of Support


Different Mission – Understanding what drives Product companies is the key– IP Protection– Time = Release Dates– Customer Facing v. Internal Applications

Different Skills – Product Development Rigor– Background & Quality of Talent– Dedicated Development teams

Non-transient

Rise of Specialized Providers– 100% Focus on Product Development– Different Operational Models– Different Contracting Models


If you are looking for Product Development expertise and you

are talking to an ITO providerthen you are both in the wrong

meeting!


1. OPD is not ITO

2. Impact of the Economy on Outsourcing



Impact of the Economy – Well $100B is just worth a little bit more today… Cash is King

Last Year RBS bought ABN-Amro for $100B

Today $100B would buy…

$100B $100B

http://www.group.abnamro.com/

http://www2.goldmansachs.com/

http://www.google.com/imgres?imgurl=http://www.palmbeachpost.com/shared-blogs/palmbeach/fredblog/media/Merril Lynch Logo.jpg&imgrefurl=http://www.palmbeachpost.com/blogs/content/shared-blogs/palmbeach/fredblog/entries/2006/11/19/the_secret_lives_of_logos.html&h=208&w=495&sz=20&tbnid=N8QrqMfZGbnDDM::&tbnh=55&tbnw=130&prev=/images?q=merril+lynch+logo&usg=__OSIPA2L4F1OgmiHVDObjBF7HwjU=&ei=oCqcScLcEuTSjAeGpNG-BQ&sa=X&oi=image_result&resnum=1&ct=image&cd=1

http://upload.wikimedia.org/wikipedia/en/4/48/Deutsche_Bank-Logo.svg

http://www.google.com/imgres?imgurl=http://www.bankjobs.pk/wp-content/uploads/2008/08/logo_barclays.jpg&imgrefurl=http://www.bankjobs.pk/investment/2008/10/05/product-manager-investments-barclays-uae/&h=240&w=710&sz=24&tbnid=oyrN3pD6aQuWBM::&tbnh=47&tbnw=140&prev=/images?q=barclays+logo&hl=en&usg=__pwI3fQmR97F-biAFOfCktN1SSKc=&ei=7iqcSeOvCpSIjAfdrszDBQ&sa=X&oi=image_result&resnum=3&ct=image&cd=1

http://www.google.com/imgres?imgurl=http://blogs.edmunds.com/strategies/GM_logo.jpg&imgrefurl=http://blogs.edmunds.com/strategies/2008/07/gm-claims-major-announcement---ends-up-just-trying-to-calm-investors.html&h=530&w=530&sz=32&tbnid=ByRC8FGaceZkqM::&tbnh=132&tbnw=132&prev=/images?q=gm+logo&hl=en&usg=__B80V0JsBXgD0P-6RTOcGle1AtPA=&ei=XyucSZScLtTIjAfKwKi7BQ&sa=X&oi=image_result&resnum=4&ct=image&cd=1

http://www.google.com/imgres?imgurl=http://www.automarkhistory.com/images/chrysler_logo_01.jpg&imgrefurl=http://www.automarkhistory.com/chrysler2.php&h=433&w=792&sz=29&tbnid=4G-sz2qVAbEmhM::&tbnh=78&tbnw=143&prev=/images?q=Chrysler+logo&usg=__BiDqn81dXT1iT-SRZfTNgNMck6s=&ei=1yucSdOvCuLBjAer5bjfBQ&sa=X&oi=image_result&resnum=3&ct=image&cd=1


Impact of the Economy

Deer-in-the-Headlights phase has passed

– Non-Decision Phase conserved cash

But the Economy has created a Call-to-Action

– McKinsey & Duke Offshoring Research Network recommend to Invest in R&D in a Downturn

– Speed and costs limit new captive options

However, European ISV’s are slow to Adopt Global R&D Strategies

– 60% not leveraging offshore

– 10% have captives

60%10%

22%

8%

Offshore R&D Strategy Followed by Top 100 European Companies in India

No Offshore R&D Captive OnlyProvider Only Captive/Provider

What Are You Doing Today?What Will You Do?

Source: Zinnov Management Consulting Pvt. Ltd.


1. OPD is not ITO


3. The Productivity Challenge


©2009 Symphony Services Corp. All Rights Reserved . Proprietary and Confidential www.symphonysv.com

Clients should not experience short term job losses and a less effective workforce

11

Effectiveness

• Move from task orientation to goal orientation

• Innovation Teams

• Introduction of Agile Development

• Six Sigma and CMMi process focus for continuous improvement

• Total Quality Management programs

Productivity

• Best practices from 2000+ releases

• Increased effectiveness from 11 Centers of Excellence

• Leverage advanced technology across the PDLC

• Collaboration Infrastructure

• Social and Information network capture, optimization and management

Measurement

• SLA’s

• P&L approach to efficiency and effectiveness

• Measurement and reward systems aligned with client goals

• Strong governance process to assure constant alignment of goals

Good Partners ensure Effectiveness and Productivity through a Metrics driven approach


1. OPD is not ITO



4. Rise of Performance-based Contracting


12


Recent Events Change the Way People Look at Outsourcing Contracts– Economic Crisis is launching a new wave of competitive pressures for

providers

– Satyam scandal fuels the flames for more contract control

Outcome-based Contracting– Moves dialogue away from rates (lowest-common-denominator) to

business alignment discussion

– SLA based contracts and output based pricing

– Can be a win-win for both provider and customer if structured correctly

Expect Greater Flexibility of Contracting Vehicles

Balance “great terms” versus profitability and sustainability for your engagement

The Rise of Performance-based Contracts

13


1. OPD is not ITO



4. Rise of Performance-based Contracting

5. Captives Beware


14


Captives are falling short of the mark –especially SME launched captives

Scale is critical to financial effectiveness. Sub-scale captives encounter– 30% - 50% Lower Productivity versus

onshore teams– 35% Higher Cost than working with a

provider– Difficulty with Recruiting and

Retention

While many analysts peg the magic number at 500 or more, even at 200, almost ¾ of captives don’t pass muster

Market Correction: 70% reduction of new captive launches over past 4 years

Source: Zinnov Management Consulting Pvt. Ltd.

60% of Captives are failing according

to Forrester Research 0

10

20

30

2008 2012

Bill

ion

s U

SD

Providers Share of R&D Growing 3x of Captives

ProviderCaptives

0

10

20

30

40

50

60

70

80

2004 2005 2006 2007

Nu

mb

er o

f C

apti

ves

Introduction of R&D Captives in Steep Decline


About Symphony - Markets Served and Sample Clients

Enterprise

Software

Web/E-

Commerce

Telecom &

Mobile

High Tech

Mfg

Service

Providers

Storage &

ILM

http://www.netiq.com/default.asp

http://www.oracle.com/index.html

http://www.concur.com/default.asp

http://www.misys.com/

http://www.avaya.com/

http://www.lawson.com/wcw.nsf/pub/GlobalStartPage

http://www.casero.com/homepage.html

http://www.kazeon.com/index.html


Symphony Services at a Glance

Exceptional Delivery Record

Commercial Software Engineering DNA & Focus

More than 150 clients

More than 300 products under management

1,000+ product releases delivered in both 2007 & 2008

1:1 Onshore/Offshore productivity

Top-notch Staff and Quality Standards

World-class talent with over 3,500 employees

Process maturity rated at CMMI Level 4

6 Sigma process proficiency

Strong IP Protection: ISO 27001 certified

ITIL Compliant (ISO 20000) and SAS70 Certified infrastructure

Certified Agile Development personnel

Approximately 600,000 sq ft across 6 delivery centers

Industry Leadership Largest Pure-Play Product Engineering Firm

Named to Global Service 100 three consecutive years

Ranked #1 Engineering Outsourcing Provider two years in a row and “Top 50 Best Managed” in 2007 by Black Book of Outsourcing

3000 Cathedral HillGuildford, Surrey GU2 7YBUK Phone: +44 (0)1483 245 457Fax: +44 (0)1483 243 [email protected]

www.symphonysv.com 18

Thank You For Your Time

David J. CarpiniManaging Director – International Business UnitSymphony ServicesO: +44 (0) 1483 245 457M: +44 (0) 7825 970 800

mailto:[email protected]

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