Outsourcing IT

Nearshore - IT Vendors Selection.

Expanding IT Operations from Ukraine to Poland

Overview

The US-based company had a stable outsourcing outlet on European continent - Greece. As part of the expansion process, and for the purpose of further improvement of operations and costs, a decision was made to set up an additional nearshore center in Ukraine. Unfortunately for them, a war started and the whole effort had to be discontinued. However, the top management realized that similar opportunity existed in the nearby country, Poland: very knowledgeable workforce, availability of highly qualified IT experts. Thanks to that, a decision was made to set up a nearshore team in Poland.

Our Customer chose nearshore outsourcing as a preferable model of cooperation and decision was to locate the new office in Warsaw, Poland. The intent was to increase the team size to 40 FTE local team members to reinforce the existing teams located in Athens, Greece. The range of position included: Full Stack SW Developers, Mobile Developers, DevOps Engineers, Manual and Automation Test Engineers and Scrum Masters.

Client:  USA Company

Services:  Nearshore/Staff Augmentation
Industry: Retail
Contracting authority: Andrzej Orzełowski

Challenge

The US Company had to react following the political turbulence in Europe (the sudden war in Eastern Europe). The principal task was to select a few European vendors from the group of 4-5 candidates, the ones that would best meet their business needs.

The goals were as follows:

  • to define clear criteria for the acceptance of potential IT companies as future business partners (vendors) in order to provide IT services in the staff augmentation model;
  • to specify the form in which the candidate IT companies should provide their references related to experience in product line delivery and maintenance as well as other business details;
  • to confirm the acceptance of the potential vendors by e-mail and set the dates of meetings with representatives (technical leaders and stakeholders) of the parties;
  • to provide feedback to facilitate further analysis and project meetings.

The Company faced a few additional important challenges: unknown business conditions in foreign countries, unpredictable political situation, communication and cultural issues and logistics of setting up an expert teams in a chosen location.

Solution

The project encompassed the following steps:

  • STAGE 0 - Defining clear criteria for the acceptance of potential companies based on provided references and experience in the product development services.
  • STAGE 1 - Selection of companies meeting the Customer criteria and conducting preliminary talks regarding the expected scope of work. Obtaining the meeting schedule and reference materials to become acquainted with the potential product development provider.
  • STAGE 2 - Organizing teleconference(s) as needed between Customer and a potential vendor(s) with the participation of technical representatives and decision makers from both sides.

Results

Identifying the two best companies that meet the criteria and moving on to the third phase of the project, i.e. negotiations of the MSA agreement between Customer and selected vendors. The choice of the final partner and the decision to start building technical teams in Warsaw was an independent decision of the ordering party.

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