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

3f6aae8f63c8d3510c341b5cadec9a68?s=47 Railsware
October 31, 2018

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

Why outsourcing model won't work in the long run? How the company’s values define its goals? How a service company can be different? The alternative ways of generating revenue and delivering the real value: building great products, from solutions for customers to own releases.
Sharing Railsware's experience of evolving from Outsourcing to Software Consultancy and to Product Studio.

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Railsware

October 31, 2018
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  1. Outsourcing - is a dead end ITEM 2018 Strategic steps

    to change your business
  2. Sergey Korolev Managing Director

  3. Outsourcing Issues & Risks Foreign Product Companies in Ukraine They

    don’t need intermediate layer
  4. 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
  5. 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
  6. 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
  7. Does anyone think that crisis is knocking on the door?

  8. Ukranian GDP/capita $2,639

  9. German GDP/capita $44,469

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

  11. Resource-based economics

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

  13. Is Outsourcing a resource-based type of business?

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

  15. Ermm… what about building great products?!

  16. Can we even categorise those companies as IT-business?

  17. Can a Service Company be different?

  18. “Outsourcing VS Software Consulting: как поднять рейты до 75 USD/час”

    https://dou.ua/lenta/columns/software-consultancy/
  19. Engineering Design Project M anagem ent Outsourcing VS Software Consulting

    Product management Business Advisory Engineering Design
  20. Competitive Value Proposition

  21. Values define Goals!

  22. Values must be different!

  23. Building great products is Value #1

  24. Can Service business be even more exciting?

  25. Let’s build own products!

  26. “Product X” real case

  27. 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”
  28. Outsourcing Software Consulting Product Studio

  29. Build great products Deliver them to the market Ensure their

    steady growth Multiply success Product Studio Produc t Idea Product Studio Successful Product
  30. Production Design Engineering Marketing Sales HR Support Operations Accounting Production

    Design Engineering Marketing Sales HR Support Operations Accounting Software Consulting VS Product Studio
  31. Smart Checklist 1.2K+ firms 100K+ users

  32. Happy Clients

  33. 220K+ users

  34. Happy Clients

  35. Client’s Idea Product Studio Our vision to avoid the dead

    end! Own Idea Successful Product Successful Product
  36. Q&A