1. marketing strategies to succeed in the global community Steve Mezak, CEO Accelerance, Inc. author of Software without Borders: A Step-By-Step Guide to Outsourcing Your Software Development

2. © 2006 Accelerance, Inc. March 2006 | 2 Kelly’s VC Pitch

3. © 2006 Accelerance, Inc. March 2006 | 3 Today you are expected to develop your software outside of the United States… Where? –In which country or continent? Who? –Which vendor? What? –What must you do to get good results? How? –How will you track their progress?

4. © 2006 Accelerance, Inc. March 2006 | 4 Where to Outsource? Language & culture IPR protection Time zone issues 80% goes to India How about you? ArgentinaBelarusBulgariaChinaCosta RicaCzech Rep.EgyptHungaryIndia PakistanNepalPhilippinesPoland Romania RussiaTurkey Vietnam USA Mexico Ukraine

5. © 2006 Accelerance, Inc. March 2006 | 5 How to Select Your Outsourcing Vendor Technical skills –Java,.NET, C++, PHP –Embedded / Mobile –Database, Web Positive happy references Beware of “body shops” Only services, no products Careful evaluation can takes months The danger of choosing the wrong vendor

6. © 2006 Accelerance, Inc. March 2006 | 6 Source, Screen & Select Your Vendor Source –from a large list of choices Screen –Using 15 criteria –Make a short list Select based on the 3 R’s –References –Rates –Resumes Enter Your Requireme nts Weight (1=lo to 5=hi) 1Technical Expertise I.NET5 2Technical Expertise IISQL Server5 3Technical Expertise IIIC#5 4 Software Develop MethodAny1 5Size of Team Needed101 6Core Team Ed. ReqsAny1 7Certified & AwardsNone1 8Target CountryAny1 9Target RegionAny1 10Workday OverlapAll Day1 11US-Based StaffYes1 12English SkillsExcellent1 13Relative CostLow1 14BOT CapabilityNo1 15Subsidiary CreationNo1

7. © 2006 Accelerance, Inc. March 2006 | 7 The Accelerance Outsourcing Jumpstart Matrix

8. © 2006 Accelerance, Inc. March 2006 | 8 Accelerance Outsourcing Jumpstart By Country or Technology or Industry By Country and Technology

9. © 2006 Accelerance, Inc. March 2006 | 9 Creating Your Own Offshore Subsidiary Only for > 50 engineers Lower costs – 1/3 rule Build, Operate & Transfer Fixed vs. variable cost Beach head in new market IP > Subsidiary Your new offshore operation

10. © 2006 Accelerance, Inc. March 2006 | 10 Designing Your Software for Outsourcing Requirements but no long specs Use cases or user stories –The who & the how –Use screen shots of existing app Screen mock-ups in HTML –Link to demo for prospects Extracting use cases from an Accelerance client

11. © 2006 Accelerance, Inc. March 2006 | 11 Controlling Your Outsourcing Keeping in touch with your team –Email, IM & VOIP Agile & test-driven development –Frequent iterations –Users as part of development process –Test first, then write code On-line system for tracking outsourcing Travel

12. © 2006 Accelerance, Inc. March 2006 | 12 Protecting Your Intellectual Property 5 levels of IP risk –Very low - standard / old tech widely available and understood –Low - some IP exposed but practical use by others is limited –Neutral - some IP exposed, partition software to limit danger –Moderate - consider using multiple teams to limit access to all IP –Serious - risk may overwhelm the benefits of outsourcing 3 kinds of protection –Technical, Legal & Physical Open source licensing dangers

13. © 2006 Accelerance, Inc. March 2006 | 13 The Future of Outsourcing Globalization 3.0 –A flat world of freelancers –And smaller, agile vendors –Not just multinationals anymore New countries & regions –South America –Middle East –Africa Vendor selection by industry & domain experience

14. © 2006 Accelerance, Inc. March 2006 | 14 Outsourcing Info & Services from Accelerance Free Report: The Seven Deadly Dangers of Outsourcing Free Bi-weekly Runtime eZine –Do’s and Don’ts of outsourcing –Latest trends Software without Borders book – May publication New low-cost Outsourcing Jumpstart service - $497 –Contacts with 5 pre-qualified vendors –By country and/or technology –Fourteen-page vendor selection guide –Hour of expert consulting to help make final selection

15. © 2006 Accelerance, Inc. March 2006 | 15 What ever happened to Kelly? 3062 Woodside Road Woodside, CA 94062 (650) 851-8010 www.buckswoodside.com Noted Silicon Valley VC breakfast hangout