Outsourcing - is a Dead End. Strategic steps on how to evolve your business model.

by Railsware

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Outsourcing - is a dead end ITEM 2018 Strategic steps to change your business

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Sergey Korolev Managing Director

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Outsourcing Issues & Risks Foreign Product Companies in Ukraine They don’t need intermediate layer

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Outsourcing Issues & Risks Foreign Product Companies in Ukraine Foreign Product Companies relocate top talent They don’t need intermediate layer Most popular articles on DOU about relocation

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Outsourcing Issues & Risks Foreign Product Companies in Ukraine Foreign Product Companies relocate top talent Salaries VS Rates They don’t need intermediate layer Most popular articles on DOU about relocation Salaries are growing while rates are not. Margins are low

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Outsourcing Issues & Risks Foreign Product Companies in Ukraine Foreign Product Companies relocate top talent Salaries VS Rates Competition on pricing They don’t need intermediate layer Most popular articles on DOU about relocation Salaries are growing while rates are not. Margins are low With each other   and local engineers

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Does anyone think that crisis is knocking on the door?

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Ukranian GDP/capita $2,639

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German GDP/capita $44,469

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Ukraine VS Germany $44,469 $2,639 16X

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Resource-based economics

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<= we sell we buy => Resource-based economics

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Is Outsourcing a resource-based type of business?

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HR KPIs hire more people! Sales KPIs sell more people!

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Ermm… what about building great products?!

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Can we even categorise those companies as IT-business?

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Can a Service Company be different?

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“Outsourcing VS Software Consulting: как поднять рейты до 75 USD/час” https://dou.ua/lenta/columns/software-consultancy/

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Engineering Design Project M anagem ent Outsourcing VS Software Consulting Product management Business Advisory Engineering Design

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Competitive Value Proposition

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Values deﬁne Goals!

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Values must be different!

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Building great products is Value #1

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Can Service business be even more exciting?

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Let’s build own products!

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“Product X” real case

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Railsware Consulting Product X Diff X - RWC Diff X / RWC Revenue $1,300,000 $10,000,000 $8,700,000 7.69 Losts - $1,040,000 - $1,500,000 - $460,000 1.44 Proﬁts $260,000 $8,500,000 $8,240,000 32,69 RW Service VS “Product X”

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Outsourcing Software Consulting Product Studio

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Build great products Deliver them to the market Ensure their steady growth Multiply success Product Studio Produc t Idea Product Studio Successful Product

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Production Design Engineering Marketing Sales HR Support Operations Accounting Production Design Engineering Marketing Sales HR Support Operations Accounting Software Consulting VS Product Studio

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Smart Checklist 1.2K+ ﬁrms 100K+ users

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Happy Clients

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220K+ users

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Happy Clients

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Client’s Idea Product Studio Our vision to avoid the dead end! Own Idea Successful Product Successful Product

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Q&A