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PORTUGAL AS AN ICT PLATFORM FOR EUROPE
Arthur C. Clarke's Law of Revolutionary Ideas Every revolutionary idea seems to evoke three stages of reaction. They may be summed up by the phrases:
(1) "It's completely impossible — don't waste my time"; (2) "It's possible, but it's not worth doing"; (3) "I said it was a good idea all along."
January 2015
Célia Reis ([email protected])
http://en.wikiquote.org/wiki/Goodhttp://en.wikiquote.org/wiki/Idea
Itens to Discuss
A. Outsourcing Technological Services
Some Key definitions
Main Drivers
The Opportunity
The European Market Context
Why Nearshore vs. Offshore?
B. Portugal as an ICT Nearshore Platform
Why Portugal?
Altran Nearshore Platform in Portugal
C. Partnership with Portuguese Government
Portugal Direct Incentives to Job Creation
D. Altran in a Glimpse
3
Outsourcing Technological Services Some Key definitions
Information technology outsourcing or ITO describes the practice of seeking resources -- or subcontracting -- outside of an organizational structure for all or part of an IT (Information Technology) function. An organization would use IT outsourcing for functions ranging from infrastructure to software development, maintenance and support. Nearshore Outsourcing is the practice of getting work done or services performed by people in neighboring countries rather than in your own country. Offshore Outsourcing. Language barriers. Cultural differences. Service breakdowns. Unexpected costs associated with doing business halfway around the world. These are just a few of the problems that have plagued the outsourcing of IT services to offshore entities.
http://www.webopedia.com/TERM/I/IT.htmlhttp://www.webopedia.com/TERM/I/software.html
Reduce and control operating costs.
Improve company focus
Gain access to exceptional capabilities.
Free internal resources for other
purposes.
Resources are not available internally.
Maximize restructuring benefits.
4
Outsourcing Technological Services Main Drivers
BPM trends
Technology catalyzes the next
wave of value accretion in outsourcing initiatives
Technology
catalyzed
Process
excellence
Scale & labor
arbitrage
Va
lue
ac
cre
tio
n
Industry Maturity
ALTRAN
FOCUS Software R&D
(Outsourcing Software Development)
ITO Information
Technology Outsourcing
Outsourcing Technological Services The Opportunity
IT investments will be largely
driven by rapid diffusion of
mobile devices, apps, cloud
services and other new
delivery models. Significant
growth is foreseen for big
data applications and
services through to 2020.
Main Forecast scenario imply
modest job growth of
100,000 until 2015, with a
structural shortage of
509,000 caused by lack of
available talent. It also
suggests that 509,000 jobs
could be created if the skills
were available.
Bottlenecks are largest in the
UK, Germany, and Italy -
which together would
account 60% of all vacancies
in Europe.
Outsourcing Technological Services The European Market Context
* Source: The Black Book for Outsourcing, Brown-Wilson Group
0% 20% 40% 60% 80% 100%
Nearshoring
Offshoring
Satisfaction index
7
Offshore’s main assurance is to cut costs up to 40% whilst delivering quality, but over 50%
of companies fail to realise any benefits when offshoring!
Realised Cost Savings Main Offshoring Root Failures
IT Managers are more satisfied with their outsourcing experiences closer to home than
with overseas initiatives*.
28% 25%
31%
11%
4% 1%
0
5
10
15
20
25
30
35
Increasein cost
Nosavings
0-20%savings
21-40%savings
41-60%savings
61%savings
9% 3%
10%
14%
15% 21%
28%
Miscommunicationsand culture
Other
Client team moraland support
Wrong answer
Outsourcing Technological Services Why Nearshore vs. Offshore?
8
Cost minimization
Improved responsiveness and
time-to-market
Increased flexibility to meet
demand fluctuations
Quality of Overall Infrastructure
Multilingual capabilities
Geographic Proximity
Excellent profile of Engineers
Portugal as an ICT Nearshore Platform Why Portugal?
9
Altran Nearshore Centre – Fundão, Portugal
10
Nearshore Center location
Fundão, Portugal
30
300
6000 m 2 Workstations
secured project rooms
Global Delivery with Local Know-how and Support
through specialized Nearshore Competence and Delivery Centers,
providing high technical and functional skills joint with world-class level of
operational excellence through process industrialization, methodologies
and best-practices.
Presentation Video
Portugal as an ICT Nearshore Platform Altran Nearshore Platform in Portugal
https://www.youtube.com/watch?v=Nw-2Jb1EokEhttps://www.youtube.com/watch?v=Nw-2Jb1EokEhttps://www.youtube.com/watch?v=Nw-2Jb1EokE
11
Selection Technical Training
Evaluation Integration
Complementary Training
- Application - RH Interview - Tech Interview - Selection
- Intensive Training Program
- 8h/day
- Java - Java EE - .Net - Tests - PL-SQL - SAP - Others
- Intensive Training
Program
- 8h/day
- Langues (FR) - Soft Skills - Creative Thinking - IDI - Innovation
- On Job Training with Pilot Project
- Real Project Integration
Cooperation between Companies and Universities for Juniors
Cooperation with IEFP for unemployed people
Develop Critical Mass of
necessary Technical Profiles
Industrialized Academies are critical to meet GAP between
University training and professional World.
They also contribute to convert unemployed people with certified
training.
They are necessary also to guarantee right level of skills available
in the Portuguese Market to meet demand
Opportunity to convert unemployed young engineers
Portugal as an ICT Nearshore Platform Altran Nearshore Platform in Portugal
Eligibility criteria
Number Employees Growth and Exports Activities
Subvention Process Gains Gains Duration Targeted Consultants
Profile
Trainees Subvention 650€/month/consultant 12 months Junior’s
1st JOB Subvention Exoneration social security 23,75%
36 months Junior’s + unemployed
Unemployment Subvention
419€ /month/consultant 6 months unemployed
COMPETE Specific Contract
According with regime in place
Being reviewed All Profiles
Corporate Tax Reduction 23% in 2014 and 21% in 2015 and 19% in
2016
Training Subvention
20% - 60% of investment Relevant Training Cost,
considering it can include Certified Training
According with training plan (3-6 months)
All Profiles
Specific regional subventions
Offices renting costs benefits
Negotiable ALL
Partnership with Portuguese Government Portugal Direct Incentives to Job Creation
1.633 M€
REVENUE
en 2013
55%
ACTIVITY
International
22 000
EMPLOYEES Proximity Relation
Amériques Europe
Asie
500+
CLIENTS
worldwide
Presence in 20
countries
An identity
Altran is an international group and global leader in
innovation consulting and advanced engineering.
14
Breakdown of turnover by sector as % of sales
Altran, partner of key players in key markets.
Our services
A range of products and services developed by the
practices "Industries" and "Solutions“
both locally and internationally.
Aerospace,
Defense &
Railway
Energy,
Utilities,
Industry & Life
Sciences
Automotive,
Infrastructure &
Transportation
Telecoms
& Media
Financial
Services &
Public sector
27%
22% 20% 18%
11%
Our solutions cover 4 major technological areas:
Intelligent Systems
Mechanical Engineering
Information Systems
Lifecycle Experience
http://www.altran.fr/nos-services/solutions/systemes-intelligents.htmlhttp://www.altran.fr/nos-services/solutions/ingenierie-mecanique.htmlhttp://www.altran.fr/nos-services/solutions/systemes-dinformation.htmlhttp://www.altran.fr/nos-services/solutions/lifecycle-experience.html