Outsourcing is contracting with another company or person to do a particular function. Almost every organization outsources in some way. Typically, the function being outsourced is considered non-core to the business. An insurance company, for example, might outsource its janitorial and landscaping operations to firms that specialize in those types of work since they are not related to insurance or strategic to the business. This presentation is about the future of software outsourcing. It contains some new facts about outsourcing development progress.

1. Software Outsourcing Realities and Perspectives: Brief Overview www.softheme.com

3. Benefits of Outsourcing

4. Reasons Companies Outsource

5. Future Trends in Outsourcing

6. Outsource Solutionwww.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

8. One in 5 UK workers at risk from outsourcing have difficulties reading and writing. The UK struggles to turn out just 8,000 IT graduates a year

9. Future economic growth depends on new generations of creative, dynamic entrepreneurs, with good access to venture capital, who will drive national economies through transitionwww.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

10. Benefits of Outsourcing Operational expertise Access to talent Cost restructuring Cost savings Scalability Improve quality Creating leisure time Tax Benefit Enhance capacity for innovation www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

11. Benefits of Outsourcing Cost savings The lowering of the overall cost of the service to the business. This will involve reducing the scope, defining quality levels, re-pricing, re-negotiation, cost re-structuring. Access to lower cost economies through offshoring called "labor arbitrage" generated by the wage gap between industrialized and developing nations. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

12. Benefits of Outsourcing Tax Benefit Countries offer tax incentives to move manufacturing operations to counter high corporate taxes within another country. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

13. Benefits of Outsourcing Access to Talent Access to a larger talent pool and a sustainable source of skills, in particular in science and engineering. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

14. Benefits of Outsourcing Time Work day: 9 a.m. – 6 p.m. Work day: 9 a.m. – 6 p.m. Total: 16 hours a day www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

15. Reasons Companies Outsource 55% Improve company focus 54% Reduce and control operating costs 38% Free resources Gain access to world-class capabilities 36% 25% Resources not available internally 20% Accelerate reengineering benefits 18% Reduce time to market 12% Share risks 12% Take advantage of offshore capabilities Function difficult to manage or out of control 10% www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

16. Future Trends in Outsourcing India and China resort to more skill-oriented outsourcing, the questions that the United States would increasingly need to ask is: why should a software guy with the same qualifications be paid more in the US, when there is a similar guy in India willing to do the same job at one-fourth the cost. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

17. Future Trends in Outsourcing Outsourcing is continuously expanding when it comes to vertical industry reach as well as geographic scope. Best-shoring is now considered the best emerging strategy for outsourcing business. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

18. Future Trends in Outsourcing The globalization of the workforce will continue to emerge and there will be a push to increase the quality of outsourcing skills set. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

19. Future Trends In Outsourcing Management challenges will become more pressing as the increase in global salaries dissipate the easy cost gains from offshore outsourcing. Furthermore, the successful companies in the future will be those that take advantage of global talent to help transform the company and their industry while still providing jobs for everyone. www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

20. Outsource Solution www.softheme.com Outsourcing to Softheme™ Softheme: Software Outsourcing Realities and Perspectives

21. Thank you! Questions???->info@softheme.com 2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions www.softheme.com»Outsourcing to Softheme™