Date: 15.05.2004 :: Page: 4 of 5

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Maturity of offshore (IT) service providers

In order to determine and compare the offshore outsourcing readiness of individual businesses (operating in low cost countries) various, but very specific, characteristics should be taken into consideration. In our practice, we recommend to systematically collect and analyze key information to determine offshore outsourcing maturity;

The company at large

Basic information about the business and business model

Legal form

Shareholder structure

Company size (annual turnover, number of employees, geographic coverage)

Availability of a business plan

Management

Focus, motivation and commitment

background, experience, capabilities and education

leadership and team process

awareness of industry trends

cultural fit

Experience and capabilities

Overall reputation and market position of the company

Services and products offered

Breadth and depth of domain knowledge

Client base and partners

Customer and partner satisfaction

Disaster recovery planning

Data privacy, security and confidentiality

Project and program management skills (geography, project size, project type)

Transition process management

Experience with various pricing models and service level agreements

Flexibility

Clear value proposition

Availability and reliability of information (web presence for instance)

Intellectual property protection

Human resources

Number of personnel and capacity

Experience levels, education background and certifications

Cultural fit

Attrition rates

Initiatives for improving staff retention

Training opportunities offered by the company (in-house and external)

Employment benefit package (salaries, bonuses, secondary benefits)

Staff selection and evaluation process

Language skills

Work conditions and common facilities

Infrastructure and technologies

Communication and IT infrastructure

Technology portfolio and compatibility

Key processes and quality certification

IT infrastructure and security

The above information is the foundation of our “Benchmarking Report”. This report is a snapshot of the company, as an entity, at a certain moment in time. The process consists of on-site interviews and site visits, self-assessment as well as desk research.

The “Benchmarking Report” and the “Country Risk Assessment” are the two key information repositories to support the Buyers’ decision making process. These are also vital for service providers in order to collect and present the right (up-to-date) information to potential buyers.

It is utmost important that Suppliers present themselves as mature and professional organizations. This is one key step towards success but it also amplifies the country’s reputation, capabilities and visibility as a viable offshore IT outsourcing destination.

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