© Copyright 2009 Avanade Inc. All Rights Reserved.The Avanade name and logo are registered trademarks in the US and other countries.

Four Areas to Reduce IT Project Spend By Up to 50%

Chris HamiltonBusiness Development ExecutiveCalgary, Alberta403-476-1473

© Copyright 2009 Avanade Inc. All Rights Reserved.

The Four Areas for Cost Savings

•Global Delivery Network: Offshore up to 100% of IT projects – 50% or greater savings

•Hardware/Software Savings: Accenture’s Proquire Service – Savings up to 20% on brand names

•Reusable IP: 10% + savings•Scientific Research Experimental Development (SRED) Credit: 30% to 42% tax credit on eligible items

© Copyright 2009 Avanade Inc. All Rights Reserved.

Typical IT Project:

• Budget: $2 M• $400K for Hardware and Software• $1.6M Labor• All work done by local

workforce/contractors• Combination of hardware and software

required

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Scenario 1

• Original Budget: $2M• 50% onshore / 50% offshore - $400K savings• 10% hardware/software - $40K savings• 10% Reusable IP total project - $200K savings• Microsoft Financing for 3 years at 8%

New Project Costs: $1.36MSavings: $640K

32% project savingsMonthly costs: $42,618

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Scenario 2

• Original Budget: $2M• 50% onshore w/ SRED - 50% offshore - $640K savings• 10% hardware/software - $40K savings• 10% Reusable IP total project - $200K savings• Microsoft Financing for 3 years at 8%

New Project Costs: $1.12MSavings: $880K

44% project savingsMonthly costs: $35,097

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Scenario 3

• Original Budget: $2M• 10% onshore w/ SRED / 90% offshore - $768K savings• 10% hardware/software - $40K savings• 10% Reusable IP total project - $200K savings• Microsoft Financing for 3 years at 8%

New Project Costs: $992KSavings: $1.008M

50% project savingsMonthly costs: $31,086

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Other Areas to Drive Savings:

• Hosted Services: – BPOS

• Virtualization:– Servers– Desktop– Applications

• Application Rationalization – up to $500 in hard cost savings

• CRM: 5% increase in client retention can increase profitability by up to 95% - Revenue increases up to 41%

• IRAP Program from the Government of Canada – Up to $250K in funding depending on your project

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Benefits to Using Avanade

•Access to a Global Delivery Network to reduce IT Project Costs

•Access to bulk discounts, regardless of size, on hardware and software through Accenture’s Proquire Division

•Readily available reusable IP to help drive project costs lower

•Global work force with offices in a multitude of different countries

•Access to our parent companies, Microsoft and Accenture, to bring know-how to IT Projects

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Contact

Please feel free to reach Chris Hamilton @:

Chris.hamilton@avanade.com

Or via Linked In @:

http://ca.linkedin.com/in/chrishamiltonca