some practical guidelines relating to export development...

Handout supporting Workshop Key success factors for EU Market Entry 11/12/08 (2008) Carl Billson, Freelance IT Expert engaged by WYG International ([email protected])

Цей проект фінансується Європейським союзом

Проект впроваджується Консорціумом на чолі з WYG

Підтримка розвитку ділової спроможності українських малих та середніх підприємств – міжнародний аспект

Some Practical Guidelines Relating to

Export Development

Carl Billson [email protected]

based on a Workshop presented to a group of

Ukrainian IT Companies, Kiev 11 December 2008





CONTENTS 1 Introduction ....................................................................................................................... 3

1.1 Diaspora ................................................................................................................... 3

2 Exercise ............................................................................................................................ 4

3 Main Themes for the Workshop........................................................................................ 5

3.1 ‘Export’ Aspirations of Project participants include: ................................................. 5

3.2 Investment Themes.................................................................................................. 5

4 Some Important things… .................................................................................................. 5

4.1 Customer 1st ............................................................................................................ 6

4.2 Business model - how I make €s ............................................................................. 6

4.3 Win - Win.................................................................................................................. 6

4.4 Do Different Thinking ............................................................................................... 6

4.5 Research, learn & copy from the best!..................................................................... 7

4.6 Work in English (or language of target market) ....................................................... 7

4.7 Good Website Design and Content.......................................................................... 7 4.7.1 Search Engine Optimisation (SEO) .............................................................................8

4.7.2 What to include on your website?................................................................................9

4.8 Help is Available – Examples................................................................................. 12

5 European Software Market ............................................................................................. 13

6 Video: ‘The Machine is Us/ing Us’ .................................................................................. 14

7 Customer Perspective..................................................................................................... 16

7.1 Extra Costs for Buyers who use nearshore* or offshore:....................................... 16

7.2 Buyer Preparing for Offshore ................................................................................. 17

7.3 Customer Assesses Its Own Readiness................................................................ 17

7.4 Learn from the Internet Marketplaces .................................................................... 19

7.5 Some Cultural Differences ..................................................................................... 21

7.6 Tips for overcoming Distance and Time ................................................................ 21

7.7 Managing the Transition to Offshoring ................................................................... 22

8 Examples about Outsourcing.......................................................................................... 24

8.1 Specialist intermediaries ........................................................................................ 24

8.2 Managed Outsourcing Model – a ‘half-way’ position ............................................. 24

9 Sources of Information.................................................................................................... 25

9.1 Journals.................................................................................................................. 26

9.2 Expos, Exhibitions, Conferences ........................................................................... 28

9.3 Open Source .......................................................................................................... 29

9.4 Organisations with interest in Outsourcing based outside Ukraine ....................... 29 9.4.1 Intellect – www.intellect.org...................................................................................... 29

9.4.2 National Outsourcing Association ............................................................................. 31

9.4.3 Centre for Promotion of Imports from Developing countries .................................... 32

9.4.4 International Association of Outsourcing Professionals ............................................ 32

9.5 Organisations Promoting Oursourcing based in Ukraine & Eastern Europe ......... 33

9.5.1 Ukraine Hi-Tech Initiative ......................................................................................... 33

9.5.2 Central & Eastern European Outsourcing Association .............................................. 34

9.5.3 IT Outsourcing News................................................................................................. 35

9.5.4 IT Ukraine.................................................................................................................. 36

9.6 Books ..................................................................................................................... 36

9.6 Offshore ‘Experts’................................................................................................... 37

9.8 British – Ukraine links............................................................................................. 38 9.8.1 British Business Club in Ukraine............................................................................... 38

9.8.2 The British Ukrainian Society.................................................................................... 38

9.8.3 European Business Association in Kyiv, Ukraine ..................................................... 39

9.8.4 The EU Ukrainian Business Council ......................................................................... 39

9.9 Companies using companies from Eastern Europe............................................... 40

9.10 Other Commercial Information Sources................................................................. 42





1 Introduction

This document is based on workshop presentations (from 11 December 2008) that were part of the ‘Support to the Development of Business Capacity of Ukranian SMEs – International Dimension’ project (the “Project”). This Project is implemented by a consortium led by WYG International. The presentations and these handout materials were prepared by Carl Billson, a UK consultant working in the scope of the Project as an “IT Expert” engaged by BYG International. Carl Billson can be contacted at [email protected].

It follows the presentations, starting with information about the potential value of contacts via the Uklrain diaspora.

1.1 Diaspora Each target country is likely to have a Ukranian Community, a Ukranain Embassy and Trade Mission. Explore these possibilities through internet research. For example the Ukranian Community in the UK is large and widespread but is not focused on Commerce so you cannot expect direct help with your need to export IT. However, it may be useful for indirect help with making the right contacts and better understanding the UK culture.

To avoid the confusion of lots of individual contacts, the Project will make contacts on your behalf with various UK Ukranian organisations and then report back. We hope to gain their help in relation to the Study Tour in April 2009. As an example of the Ukraine diaspora in action, in May 2009, the Ukraine International Football Competition is in Nottingham. In previous years it has been in Australia and it attracts teams from a round the world including the USA. It’s a bit of fun and networking!

Kiev has Edinburgh as its twin town in the UK





http://www.augb.co.uk/index.php On behalf of the Project, Carl Billson is making contact with representatives of the Ukraine diaspora via this Association and will be in contact with other UK-based organisations that deal with UK-Ukraine business and commercial links. “I don’t believe it, they’ve outsourced Santa”

Source:

http://www.vsubhash.com/writeups/santa_outsources2india.asp

2 Exercise You should always listen to the “Voice of the Customer” as she or he is the most important person for you business. It’s vital to do Market Research continuously to ensure that your company is providing what customers want and in the way they like. A ‘Voice of the Customer’ exercise was carried out with the workshop delegates as the ‘customers’: “Write down 3 things you want to learn about doing business with Western European companies “ The results from this exercise will be collected and summarised in a separate document We will try to provide help in the areas you ask about and respond where possible – that is, within the limited resources of the Project.





3 Main Themes for the Workshop � Selling products & services – readiness & channels to market � Investment – ‘Thank You’ to the Project company InnoVinn for their FAQs which

are described in Section 3.2

3.1 ‘Export’ Aspirations of Project participants include: � Selling outsourcing services (nearshore – that is, to Western Europe)* � Finding investors – share or Joint Venture � Finding Agent or representative � Finding specific company with ‘mirror’ needs � Expanding product portfolio – become local implementation expert for a partner

product � Local work for multinational is ‘exported’

Please note: The approach you take will be different for each type * this does not leave out America or other countries if they are strong target markets for your business. However, as the Project is EU funded, our focus has to be on Western European countries as target markets.

3.2 Investment Themes These were the themes that we dealt with in a separate presentation by a specialist in IT investments who works for a Kiev investment company Dragon Capital (ww.dragon-capital.ua). � Due Diligence – what does it mean? - in Western Europe & in Ukraine? � How do Investors Value an IT company? � Different types of investment

� Venture Capitalists � ‘Business Angel’ – Private Investor � Partnership – complimentary skills

� Steps to search for an investor? � +/- signs of business for investors In the course of his presentation, Max from Dragon Capital, explained that his company was more suited to handling larger-scale investments and that other investors would be suited to working with Small to Medium sized companies (SMEs) such as those on the Project.

4 Some Important things… 1. Customer First (No. 1!) 2. Business Model – how I make € 3. Win – Win 4. Different thinking 5. Research, Learn & Copy the Best! 6. Work in English (German, etc.) 7. Good Website Content and Design 8. Help is available





4.1 Customer 1st Why? Because: “No Customers > No Income > No Business”

4.2 Business model - how I make €s Who will buy? Define the target markets What else could they buy? Is it better? What will they pay? Cheaper? - or free? Why will they buy? – Benefits & Features How will they buy? – Downloads? Software as a Service (SaaS)? Etc? Other sales opportunities? - for example: solution configuration, training, support, new versions etc.

4.3 Win - Win � Reputation � Selling repeat business is cheaper � Word-of-mouth recommendation � Good long-term relationships � Trust

4.4 Do Different Thinking … because this is NOT Business As Usual – is a Step Change in your business Example of a tool to encourage thinking differently from Edward DeBono - Six Hats*

Source: De Bono Information on Wikepedia, http://en.wikipedia.org/wiki/Edward_de_Bono





4.5 Research, learn & copy from the best!

You can decide who you think are the best!

Luxsoft – a large company but also one example of websites to research and copy good ideas. There is no need for you to re-invent the wheel !

4.6 Work in English (or language of target market) Do your research in the language and website Search engine of your target market – for example, English, German, Netherlands etc., .co.uk, .de, .nl … Also. remember that many companies may use .com also Choose the Search Engine that is most popular in that country – In the UK this is Google

4.7 Good Website Design and Content

Your Web is your ‘Shop Window’

MAKE GREAT EFFORTS TO HAVE A REALLY GOOD WEBSITE

First impressions of users count. Potential customers will judge your business by the quality of what the see there! Remember, your website is visible from anywhere in the world using a web browser!

How does is compare with the web sites of similar companies and your competitors for your target markets?





Do market research to find web sites for comparison. Study their design and content. Copy the best ideas for use on your website!

Think about the English version of your website. It should be different from your Ukraine version. It can have less content for example. However, have more focus on the needs of buyers from the UK and other Western European markets.

Remember the joke from the cartoon that says, “On the Internet, nobody knows you’re a dog”. Your website can be as impressive as a company that is much larger and better financed.

For source information, see:http://en.wikipedia.org/wiki/On_the_Internet,_nobody_knows_you%27re_a_dog

4.7.1 Search Engine Optimisation (SEO)

You need to do extra work to get your website noticed so it appears near the top of Search Engines like Google. Are you doing anything about Search Engine Optimisation to increase your rankings on the Search Engines that your customers will be using? For more information about SEO, type ‘Search Engine Optimization Guide Google’ into Google and follow some of the links. One example document you should find is at the link: www.google.com/webmasters/docs/search-engine-optimization-starter-

guide.pdf Some of the companies in the Project are VERY active in this because the Google Search Engine it is the main channel for customers finding them. You decide how much effort you want to put into SEO. There are other ways of getting your website in front of potential customers – such as belonging to an Alliance of similar ompanies such as Hi-Tech Initiative. They promote their website in the Search Engines and potential customers can find your site listed on theirs.





Customer names & logos change at random

Features and benefits – what is most interesting for customers

News items – make sure they are not old News!

10 reasons why your organisation needs the product – a kind of FAQ

Why you – the customer – will save money! A Return on Investment Calculator helps calculate savings

You can repeat some of the links to information. Here are links to: - How it works - Case Studies - Testimonials - Features & Benefits

Testimonials – good words from customers

4.7.2 What to include on your website?

Study websites from similar companies to your own. How are they trying to win the same target markets as you? - Source: http://www.orchidsoft.com Not everyone likes the same design. At the workshop, someone said this look too ‘busy’ for his liking. That’s a fair comment because design is very personal.





Suggestions for content sections on your Website: � What Services (and / or Products) your provide � Benefits of the Product or Service � Features � Case Studies & Testimonials � Frequently Asked Questions (FAQs)* � About your company and the capabilities of your staff and their experience � …and others… so Research websites that sell similar products and services to

your own to learn from the content they present and the method * A note about Frequently Asked Questions (FAQs). You can use FAQs to your advantage and really hep the visitor to your website. To help you write them, think about all the questions that a visitor might ask, especially the ‘difficult’ questions. Then write down the answers that your best sales person would give. You have ‘controlled’ the dialogue by doing this and potential customers have already got a better impression of your business by reading the FAQs. Buyers have little NO patience Buyers will quickly look at the next website if it’s not easy for them to get information Make sure you have the right content, the right amount of content and a design that you think will appeal to your customers. It needs to be a ‘sticky’ website with useful information that is attractive to look at, so that visitors stay as long as possible learning about you from your virtual brochure. The longer they stay, the more likely they are to take the next step of contacting you. Many Project companies invest significantly in the ‘look and feel’ of their websites and measure how well they are performing using tools – see Google Analytics which is available in Russian as well as other languages.





Source: http://www.google.com/analytics/ru-RU/

There are Google videos that explain how to use the SEO tools.





4.8 Help is Available – Examples � In-company – colleague know-how � Cross-company � This Project � Associations & Member Groups � Paid Experts – Intermediaries & Consultants � Diaspora contacts All are on a Journey – Evolution Both for Buyers & Sellers

“Good News!” Recent research suggests that Eastern Europe will be a location where West European companies will look to for Nearshore software services Support in a ‘Position Paper Towards a European Software Strategy’

A paper developed by the following organisations in collaboration:

http://www.life.uiuc.edu/mcb/419/images/GeoTimeSpiral.jpg





5 European Software Market � Global software market estimate by EITO for 2008 = 238,5 billion euro

� U.S.A.: 105,6 billion euro � Europe: 85,9 billion euro � Japan: 24,5 billion euro � Rest of the world: 22,5 billion euro

� European software market =36% of world � Europe is Net Importer but some countries net exporters – e.g. Germany &

Netherlands ICT Skills Shortage in EU Source: European Software Strategy Position paper Oct 2008 � “…skills shortage is no longer an issue or a potential threat but a reality.” Why?

poor job image & lack of interest in school � Effects? Limits growth & provides a strong incentive to outsource offshore

software development – ideally nearshore � Identified a lack of: software developers & engineers; marketing & sales skills;

managerial talents Trade-off of Challenges Source: European Software Strategy Position paper Oct 2008 1. Variability: offer customers different software product variants 2. Flexible development: respond quickly to new market needs & customer

requests 3. Risk management of failure: fully exploit software in products without

compromising safety, security, or robustness of mission-critical applications Investment Capital Source: European Software Strategy Position paper Oct 2008 � European venture capital investment in early stage firms has stagnated at around

€2 billion. The 10-year return on overall venture capital investments was 6.3% in Europe compared with 26% in the US.





� Business angels investments in Europe are estimated to be less than 10% of those in the United States.

� Again, some countries do well (UK, Sweden, Denmark) but the average performance is very low & Banks are not compensating

Gaining Investment Source: European Software Strategy Position paper Oct 2008 � EASIER: Application software as less exposed to global competition, seen as in

line with stable vertical markets & is integrated in a clear value chain. � HARDER: Technical software products (Infrastructure and tools software) have

high global competition as soon as on the market Recommendation Source: European Software Strategy Position paper Oct 2008

• Item 1.2. Better leverage of high potential pool of talents where attractiveness for software development is much higher in younger people

• Item 1.3. Prepare Students with combined IT & Business skills

• Item 1.4. Improve quality & efficiency of existing workforce in an increasingly global environment

Opportunities for Ukraine IT Sector � Ukraine has a reputation for having very capable technical IT students � Also need to ensure they gain the necessary skills in business management,

project management, marketing & sales Ukraine has a First in computing! The first computer in continental Europe was built in Ukraine under the supervision of the scholar Sergey Lebedev and well-known scientist V.Hlushkov. Why not mention this interesting fact somewhere on your website, for example to support the fact that Ukraine has a long tradition in computing and software skills, one that continues and customers can benefit from.

6 Video: ‘The Machine is Us/ing Us’ Created by Michael Wesch who is Assistant Professor of Cultural Anthropology, and his students. Over 7m downloads of different versions of this video – an example of ‘Viral Marketing’ where word-of-mouth over the internet spreads news very quickly about something that is interesting. “Web 2.0 is linking people… …people sharing, trading and collaborating…”





The video is on YouTube

at:http://www.youtube.com/watch?v=NLlGopyXT_g

The work of Michael Wesch is at http://www.ksu.edu/sasw/anthro/wesch.htm





7 Customer Perspective

Outsourcing – both the Seller and the Buyer are on a similar Journey

7.1 Extra Costs for Buyers who use nearshore* or offshore: The Buyer’s Initial set-up costs may be significantly high

� Search and Contract � Restructuring of organisation – new roles and responsibilities of staff � Infrastructure; technology & connectivity � Knowledge transfer � Travel � Overhead allocation (accounting term) � Governance � Mitigating risks (e.g. disaster recovery)

*’Nearshore’ refers to buying outsourcing services from companies in countries that are not far away in terms of distance, time zone and culture. ‘Offshore’ tends to be the opposites





7.2 Buyer Preparing for Offshore

7.3 Customer Assesses Its Own Readiness Source for examples of measures used by buyers as shown in graphs below: "Offshoring Information Technology - Sourcing and Outsourcing to a Global Workforce" By Erran Carmel (American University, Washington) and Paul Tjia (GPI Consultancy, Rotterdam). Published by Cambridge University Press in 2005 and reprinted in 2006 and 2007 - ISBN 0521843553. Also, see review of this book at: http://www.gpic.nl/book.htm





Which Project is Most Suited to Offshoring?

‘Attractiveness’ of providers

Need Good Internal Benchmarks The buyer has to know the current costs of doing the same work ‘inside’ the company that is planned to be outsourced. He calculates where the company can make most savings by outsourcing. After the work has been outsourced, he can check against these measures to see how well the predictions have been correct.





Contract will have:

� KPIs – Key Performance Indicators (for example, measurements to show how

well the contact is working) � SLAs – Service Level Agreements (says what should be done by the outsourcing

company as part of the contact, the level of performance) � OLAs – Operational Level Agreements (says what the buyer should do to meet

his part of the agreement and allow the outsourcing company to perform) Sophisticated Management is Used by Many Buyers A Framework for Change Management See example diagram at: Source: http://www.alsbridge.eu/knowledge/practitioners_guides.html

7.4 Learn from the Internet Marketplaces Examples include: � Elance - http://www.elance.com/ � RentACoder - http://www.rentacoder.com � GetAFreelancer - http://www.getafreelancer.com/ � Scriptlance - http://www.scriptlance.com/ Please Note: we are NOT recommending this as a business opportunity for your companies. It is a suggestion for a way to learn from your research on their websites of how they manage projects. These sites do work in a global market so the ideas are useful to take from them. Overview of Internet Marketplaces for Software Development � Like eBay – brings together buyers & sellers in software development (&

translation etc.) � Global, well-organised, based on ratings for buyers & sellers � Elance are the ‘brokers’ � Once a deal is reached the buyer places money with Elance � As each milestone is completed Elance releases payment for that stage � Code of Conduct & Elance sorts out disputes � Mostly lower value but good to learn from Learn what you can from their websites and maybe participate under an assumed name to get a feel. NB: we are not recommending this as a business opportunity for your companies, only to learn from the research on their websites of how they manage projects, guidelines for doing business effectively (often provided by the community of users themselves).





Concept of Ratings – Reputation and Trust for Buyers and Sellers

High Rating for Buyers suggests:

• They specify the work and their requirements very clearly

• Pay promptly

• Have fair expectations of the time it will take

• Are very good at communication

• Are flexible and realistic if there need to be any changes mid-way High Rating for Providers (Sellers) suggests:

• Efficient

• Fair price charged/agreed

• Good quality

• Good at communication

• Are flexible and realistic …etc The opposites of the above qualities will lead to low ratings. Compatible – right size of jobs, right levels of experience etc to make it work





Type Elance University into the YouTube search engine to see examples of video guides on how to work using Elance. Elance and similar companies are ‘brokers’ or intermediaries who earn money by bringing together buyers and sellers of services. It is a global business – recognise how they have made things as simple as possible for both parties. Learn from concepts and principles Elance Tips for Managing Remote Work – by the Elance Community themselves! � Practice clear communication � Set appropriate deadlines � Use business terms effectively � Keep track of project hours � Provide regular status reports � Understand billable hours and hours per week � Be aware of time zone differences & holidays Source: Elance website

7.5 Some Cultural Differences � Power & Decisions – autocratic vs consultative � Relationships - individuals vs groups � At ease with Uncertainty? � Orientation towards Time - mañana � Communication – direct or indirect? � Flexibility in Styles of Thinking What the English really mean! It can often mean the opposite of what it appears to say! Example:

English Natives Say… What non-English understand

What English Natives mean

Oh, by the way or Incidentally

What I am about to say is not very important

This is the primary purpose of our discussion

Not bad Poor or average Good or very good Quite good Quite good A bit disappointing I hear what you say He or she accepts my

point of view I disagree or do not wish to discuss it any further

Two areas that are difficult to translate are Idioms and Humour

7.6 Tips for overcoming Distance and Time Formalise what is often informal � Weekly meetings in real-time – “rhythm of interaction” � Iterate with frequent deliverables





� Standardise communication protocols � Build ‘situational awareness’ � Differentiate communication protocols – e.g. urgent vs acknowledge; escalation Put more effort into creating ‘informalisms’ � Create cohesive Team Culture – build relationships and trust � Encourage real-time interaction � E-touch – putting warmth into normally ‘cold’ emails Over time, as you get used to working with a customer its possible you’re your relationship moves from Transactional (straight buying and selling) to Collaborative (greater involvement in understanding requirements for software) to Strategic (helping the customer with plannings). In general, benefits increase as you become closer to customers and the relationship is mutual

7.7 Managing the Transition to Offshoring � Knowledge Transfer : sharing what it is that providers need to know to be

effective � Change Management: overcome inertia and resistance � Governance: structures, roles & responsibilities � Smarter management or you just have the ‘Same mess - for less’ Analogy with playing football – increase the standard and quality of your game by working with and learning from buyers who have good processes and expectations Avoid buyers who are learning – they are costly to work with! A company called Outsourcing Ukraine have a page on their website that has Ten Factors for Successful Vendor Selection.

Source: http://www.outsourcing-ukraine.com/AboutOutsourcing.aspx





This is useful information for some potential buyers and is helping establish the credibility of the company. There is no reason why you should not have similar useful information on your website that demonstrates your professionalism and experience in working with customers. However, the standard of the English must be very high!

7.8 Customer is Number 1 What makes your business special? Luxsoft mentioned the following, again emphasising that their stated ‘Client-centric culture’ in saying “Clients Speak”:

Stages of Excellence in Outsourcing





Source: CAPS Research – Oursourcing Strategically for Sustainable Competitive Advantage The above table illustrates that there are different levels or degrees of involvement in outsourcing and companies can identify their current ‘position’ and see where they plan to move to with future development and investment.

8 Examples about Outsourcing

8.1 Specialist intermediaries Research what they say about themselves and the value of their services to customers. Examples include: Ventura (www.ventura.co.uk) – use companies Pune, India Endava (www.endava.com) – use companies in Romania and Moldovia

8.2 Managed Outsourcing Model – a ‘half-way’ position Customer-facing work happens in the ‘customer’s county Example: www.cloudstreetcomputing.co.uk Model of a local (UK based) company with a very close association with its long-term off-shore partner. Cloud Street remain customer-facing in the UK and they say that their customers get the “Best of both worlds” – local contact for specification and discussions on project management plus a cheaper job overall because the coding work is performed at a nearshore location (in this case Poland).





Research their website to read about ‘How we work’ and ‘An agile approach’ which describes the benefits of them using the agile methodology (they use Scrum).

9 Sources of Information These include:

• Online Computer Press (e.g. Computer Weekly www.computerweekly .co.uk)

• Expos, Trade Shows, Conferences and Exhibitions

• IT related organisations who have a section about Outsourcing – e.g. Intellect

• Websites of companies who already do similar work to what you do or intend to do as export work

• Websites of intermediaries – specialists that UK companies go to for guidance in finding the right kind of partner for nearshore work or a long-term relationship, that could grow into investment

• Blogs





• Newsletters from Outsource specialist Organisations (Intermediaries)

9.1 Journals

Computer Weekly www.computerweekly .co.uk – has a section on Outsourcing – example article from: http://www.computing.co.uk/vnunet/analysis/2233097/2008-review-offshoring

“2008 year in review: Offshoring

A look at the highs and lows of outsourcing in a difficult year Written by Rosalie Marshall

24 Dec 2008

…A recent report from analyst firm Gartner looked at the credentials of 72 countries as

offshore locations, and listed the top 30 destinations in 2008.

Gartner reported that Ukraine was the only country in EMEA to achieve a rating below 'good'

in terms of cultural compatibility. But this may soon be challenged, according to a new

industry group launched this year to promote outsourcing providers in Eastern Europe.

The Central and Eastern European Outsourcing Association (CEEOA) intends to pool

resources from associated bodies based in the Baltics, Ukraine, Hungary, Bulgaria and

Romania, in an effort to increase the volume and quality of service delivery in particular

states.

The CEEOA claimed that it will work within the region to improve factors such as

"international trade practice" and "modern business management competencies" .





http://www.outsourcemagazine.co.uk/...”





9.2 Expos, Exhibitions, Conferences Examples where you can research names of companies and individuals for possible contacts and networking include: Internet World - http://www.internetworld.co.uk/

Channel Expos 2009 - http://www.channelexpo.co.uk/

Positives of Attending an Expo:

• ‘Neutral ground’ – can see lots of companies in one visit

• No obligation to follow-up – unlike inviting a salesperson to your offices

• By being there, demonstrates to all in the marketplace that you are a serious player

Negatives of Attending an Expo:

• It’s quite expensive to exhibit – stand design, stand space rental, transport, staff hotel costs, staff time, preparation of special demonstration software etc.

• Lot’s of hard work – before, at the event, follow-up afterwards





Contact your existing clients to invite them to your stand. Hope to learn more about what they are currently doing, plans they have for the business and IT requirements to help you to understand how you might help them.

9.3 Open Source Many companies already use and adapt open source. Example of open source for CRM – Plone opensource software - http://plone.org/ Example of UK company using Plone - http://www.netsight.co.uk/

Notice the company ‘Tag line’ – “understand, develop, deliver”

9.4 Organisations with interest in Outsourcing based outside Ukraine

9.4.1 Intellect – www.intellect.org

Example of UK organisation representing hi-tech companies that has a group who are concerned with Outsourcing matters - Intellect See http://www.intellectuk.org/content/view/431/47/





Example of conference being held on outsourcing by Intellect:

http://www.intellectuk.org/component/option,com_events/task,view_detail/agid,783/year,2008/month,09/day,18/Itemid,166/

Example of a publication by Intellect, Steria and Alsbridge. To download a copy, go to:

http://www.alsbridge.eu/knowledge/offshore_futures_project.html





http://www.alsbridge.eu/knowledge/offshore_futures_project.html

9.4.2 National Outsourcing Association

http://www.noa.co.uk/

National Outsourcing Association – a UK-based organisation with more information at http://www.noa.co.uk/

They run conferences. Also, they often have useful information in the News section. Here is information about a new qualification in outsourcing:





9.4.3 Centre for Promotion of Imports from Developing countries

http://www.cbi.eu/

The Centre for Promotion of Imports from Developing counties is based on Holland with their website at http://www.cbi.eu/

They have very useful information on their website. For example, they have a booklet you can download that gives western buyers advice on outsourcing – see example page:

9.4.4 International Association of Outsourcing Professionals

http://www.outsourcingprofessional.org/

American based but with groups or chapters around the world, including London (but not in Ukraine)





9.5 Organisations Promoting Oursourcing based in Ukraine & Eastern Europe

9.5.1 Ukraine Hi-Tech Initiative

www.hi-tech.org.ua

Become a member of the HI-Tech Initiative – it is free to join. It gets your company’s name and details in front of prospective customers who are researching the Ukraine market. The organisation also belongs to CEEOA (see 9.5.2) and both organisatinos are working to gain publicity in the Western European press.

There is much useful information on this website, for example to help visitors understand why Ukraine is a good country from which to choose an outsourcing partner company. It organises an annual survey - can download the latest version for free from the Ukraine Hi-Tech Initiative website at www.hi-tech.org.ua





9.5.2 Central & Eastern European Outsourcing Association

http://www.ceeoa.org/

Ukraine Hi-Tech Initiative belongs to the Central & Eastern European Outsourcing Association. The CEEOA website is at http://www.ceeoa.org/

Publicity about CEEOA in the UK computing press on 30 October 2008 is at http://www.computing.co.uk/computing/news/2229409/eastern-european-vendors-target-4316307 under the headline

“Eastern European vendors target UK - Outsourcers club together to improve quality of services

Outsourcing providers in Eastern Europe are launching a drive to target companies in the UK.

A new body called the Central and Eastern European Outsourcing Association (CEEOA) has been set up to pool resources from associated groups in the Baltics, Ukraine, Hungary, Bulgaria and Romania to increase the volume and quality of the region’s service delivery.

“Lack of international trade practice and modern business management competencies by central and east European vendors are among the factors keeping the region from realising the considerable opportunities created by globalisation,” said CEEOA.

While India, China, and the Philippines are the UK’s first-choice locations to offshore IT services, Eastern Europe is further down the list, according to the National Outsourcing Association (NOA).





NOA director Mark Kobayashi-Hillary said the new body is exactly the type of umbrella organisation the region needs.

“A single company only ever wants to achieve sales and growth,” he said. “The trade body can take a look at the bigger picture of education, training, and how the industry can improve the environment in which it operates.”

CEEOA is in discussions with the NOA to promote its vendors in the UK, according to Ukrainian Hi-Tech Initiative spokeswoman Iryna Dubenyuk. She said Poland might also join the group, which would give the organisation more weight considering the scope of Poland’s outsourcing market.

NOA chairman Martyn Hart said Eastern European firms should focus marketing efforts on specialist areas where the region can differentiate itself, such as complex financial software modelling, to overcome other potential limitations…”

9.5.3 IT Outsourcing News

http://itonews.eu/

News from Central and Eastern Europe. If you have some news – send it to them!





9.5.4 IT Ukraine

http://www.itukraine.org.ua/

The website is in different languages

Example of IT Ukraine working with BITKOM at CeBIT 2007

9.6 Books Research the kinds of books that UK-based customers may be reading to understand more about outsourcing. Go to www.amazon.co.uk and type in ‘outsourcing’ in the Search area. (Remember not all outsourcing is offshore or nearshore.) Example feedback from a search:





9.6 Offshore ‘Experts’

http://www.offshorexperts.com/

See the various country listings – including Ukraine

Ukraine Outsourcing Directory – check who is listed. Decide if you wish to be listed as well.





9.8 British – Ukraine links

9.8.1 British Business Club in Ukraine

http://www.bbcu.com.ua/

9.8.2 The British Ukrainian Society

www.britishukrainiansociety.org





Chair of the British Ukraine Society is Richard Spring MP who has his own website that makes reference to his work in relation to Ukraine:

Source: http://richardspring.mpblogs.com/category/ukraine/

9.8.3 European Business Association in Kyiv, Ukraine

www.eba.com.ua/

Activities include lobbying of government about business matters. Currently no active ‘committee’ representing IT although there are IT companies who are members.

9.8.4 The EU Ukrainian Business Council

http://www.euubc.com/





9.9 Companies using companies from Eastern Europe One example is The IBA Group - http://www.iba-it-group.com/

From their website: “IBA Group is the largest IT service provider in Eastern Europe performing onshore, near-shore and offshore projects with more than 2,500 professionals. Headquartered in Prague, Czech Republic, IBA Group has offices in the United States, Germany, Bulgaria, Cyprus and Russia, and software development centers in Belarus and Czech Republic.” Compare how IBA Group presents Belarus as a destination for Outsourcing at: http://www.development.by/publications/a0029807a5ee2572.html





Another example is http://www.epam.com/

Website quotation: “EPAM Systems is the # 1 software engineering outsourcing services provider in Central and Eastern Europe. Founded in 1993, EPAM maintains North American headquarters in Lawrenceville, NJ, and European headquarters in Budapest, Hungary, as well as support and delivery operations in UK and Germany. EPAM software development centers are located in Russia, Hungary, Belarus, and Ukraine.

As the Offshore/Nearshore software development services provider in Central and Eastern Europe with the most geo-diverse delivery network in the region, EPAM has access to the best regional talent to successfully deliver large, complex, and challenging projects.”





9.10 Other Commercial Information Sources Example of a ‘boutique’ outsourcing advisor showing articles they have in their News section:

http://www.paceharmon.com/about_us/news_coverage.html Example of article from an American based outsourcing information portal sponsored by the Everest Group. Their website says, “OutsourcingCenter is the publishing and

marketing channel of Everest Group, one of the world’s most prominent consulting

firms, assisting organizations worldwide in moving from their business challenges

and goals to capturing maximum value in their business solutions.”





http://www.outsourcing-europe.com/easterneurope.html

http://www.theblackbookofoutsourcing.com/advisors-ito-2008.htm This USA-based organisation publishes annual survey information about all forms of outsourcing, not just IT outsourcing. In their Report ‘State of the Outsourcing Industry’ 2008 available for download from http://www.theblackbookofoutsourcing.com (Please note: this tends to be a USA-based perspective). Example survey results:

Example of the survey results, most Important or Desirable Supplier Features in 2009

some practical guidelines relating to export development...

Documents