… creating solutions for a complex world kaleidotek Going Global: creating successful IT outsourcing partnerships FINmedia presents: e-Business Romania Conference World Trade Center Bucharest, Romania 26 March 2002 Presentation by: Joni Roberts, President

… creating solutions for a complex world kaleidotek kaleido + tek Greek root for “beautiful shape” + “technology” Specialists in IT outsourcing and international staffing Outsourcing value proposition: Starting with the client’s IT/software development needs kaleidotek creates customized outsourcing centers Selecting IT specialists from our diverse portfolio several hundred experts And ensuring that the client’s quality and cost reduction objectives are met

… creating solutions for a complex world kaleidotek Why IT outsourcing at an e-business conference? Teams of IT specialists in multiple international locations, usually involved in software application development Bulk of communications and product delivery is done over the Internet

… creating solutions for a complex world kaleidotek Benefits of Successful Outsourcing Partnerships Reduce IT costs Client improves company focus & frees up internal resources Risks are shared between companies Diverse teams lead to more creative solutions Shorter product development cycles & quicker time to market

… creating solutions for a complex world kaleidotek Baseline Parameters for Successful Outsourcing Partnerships Success is dependent on flexible, clearly understood & mutually beneficial service level agreements Both companies must have shared goals & be fully committed to the success of the partnership Both locations must enlist project managers to monitor & coordinate the development process

… creating solutions for a complex world kaleidotek Challenges facing Outsourcing Partnerships Selling & preparing contracts for outsourcing services is just the beginning. The real challenge is making it work and making it last. The plus about IT field is that there are usually more similarities than differences between companies However, if not understood, the differences can become the triggers for dissatisfaction Solution is to have recognition of the potential problems & strategies to overcome them

… creating solutions for a complex world kaleidotek COMMON GROUND -IT cultures are similar; technology & programming languages are universal -Mutual desire to develop quality products & achieve project goals -Mutual desire to develop a successful relationship between companies Country Culture Company Culture Individual Culture Communication Styles Distance Between Locations Incongruent Goals CHALLENGES

… creating solutions for a complex world kaleidotek “I buy in my culture, I sell in yours” Differences in a person’s values, beliefs & assumptions show up in behavior Understanding of the country, company & individual cultures of both organizations is necessary for success Cross cultural relationships require “out of your cultural box” thinking! + assumptions + beliefs + values = behavior

… creating solutions for a complex world kaleidotek Communication Styles Assume “good intentions” in communications & behavior even though the approach taken may be unlike your own Indirect (high context) vs. direct (low context) communication styles Direct communicators, like Americans need to be aware of underlying meanings of indirect communicators, like Romanians. And Romanians need to adjust to the direct management & communication style of Americans. In hierarchical societies, which most developing countries are, giving staff deliverables reduces concern about offending management & increases the willingness of employees to take action & communicate ideas.

… creating solutions for a complex world kaleidotek Distance between Locations Close the gap with regular communications using video conferencing, , telephone, and on-site visits from both parties Build trust by regularly reporting the status of project Create a team spirit by gaining the participation of all members & providing incentives based on the achievement of objectives

… creating solutions for a complex world kaleidotek Incongruent Goals Potential Conflict: Over time, the client’s objective is to continue to reduce costs while the outsourcer is interested in demonstrating growth. Solution: Create “win-win” service level agreements that are mutually beneficial in the beginning and as the relationship evolves

When done well, outsourcing can be highly effective. The goal is not to think alike but to think together. kaleidotek … creating solutions for a complex world

Thank you for your attention! For more information contact: Joni Roberts, President Blvd. Unirii 55, Bl E4a, Fl. 5, Apt. 9 Sector 3, Bucharest kaleidotek … creating solutions for a complex world