Software Offshoring as an Ecosystem. April 5, 2006 Leo Brunnick SVP Engineering and IT, Vignette

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1 Software Offshoring as an Ecosystem April 5, 2006 Leo Brunnick SVP Engineering and IT, Vignette

2 Agenda Vignette Overview Vignette Engineering Timeline of Outsourcing What We re Outsourcing Vignette s Offshore Model Results and Lessons Learned

Vignette ECM Platform Analyst Definition of ECM: Web Content Management Collaboration Imaging and Capture Document Management Records Management Process Management / Workflow Vignette Integration

3 Vignette ECM Platform Analyst Definition of ECM: Web Content Management Collaboration Imaging and Capture Document Management Records Management Process Management / Workflow Vignette Integration Vignette Content Management Vignette Image Capture Vignette IDM Service-Oriented Architecture Vignette Collaboration Vignette Records & Documents Data Storage RDBMS J2EE Services Developer Services Directory Services LDAP

4 Vignette ECM Platform Vignette exceeds those requirements: Supports transformation of information in context of the user Provides unified access through the Vignette Portal Accelerates business growth initiatives Completes the value chain Vignette Integration Vignette Portal Vignette Builder Vignette Dialog Vignette Content Management Vignette Image Capture Vignette IDM Service-Oriented Architecture Vignette Collaboration Vignette Records & Documents Vignette Analysis Data Storage RDBMS J2EE Services Developer Services Directory Services LDAP

5 Vignette s Customers Retail/ Gov t/public Media/ Financial Manufacturing Distribution/ Technology Telcom Sector Publishing Other Travel/ Transportation Pharma/ Healthcare

6 Worldwide Engineering Team San Fran 10 App Builder Austin 80 WCM Dynamic Portal V6 Portal Dialog Analytics Integration Ahmedabad 15 Hyderabad 140 Austin/SF Partner Sydney Partner Sydney 65 Records Mgmt Doc Mgmt Image Mgmt High-Speed Capture Collaboration

7 Offshoring Timeline Vignette Offshoring Timeline Started with 5 person on-site Virtusa QA Team Brief attempt at wholly-owned India Center 20 to 40 person Virtusa Team 15 person India Team with US MNC 10 person India Team with India MNC Acquired 15 person QA Team with small India firm 60 person Virtusa Team 140 person Virtusa Team, started PS work Hosted by Virtusa model Began IT and PM work

8 Products in the Offshore Model Vignette Integration Vignette Portal Vignette Builder Vignette Dialog Vignette Content Management Vignette Image Capture Vignette IDM Service-Oriented Architecture Vignette Collaboration Vignette Records & Documents Vignette Analysis Data Storage RDBMS J2EE Services Developer Services Directory Services LDAP

9 Products in the Offshore Model In the Vignette-Virtusa Center of Excellence : Blue Full Software Ecosystem (Business Analysis, Software Development Lifecycle, Professional Services Support, IT Internal Use Projects) Red Professional Services Support, IT Internal Use Projects Only Vignette Integration Vignette Portal Vignette Builder Vignette Dialog Vignette Content Management Vignette Image Capture Vignette IDM Service-Oriented Architecture Vignette Collaboration Vignette Records & Documents Vignette Analysis Data Storage RDBMS J2EE Services Developer Services Directory Services LDAP

10 Offshoring Models Fully Owned S a v i n g s Joint Venture Dedicated Center BOT / SOT Committed Sourcing Sub Contract Control

11 Offshoring Models S a v i n g s Fully Owned Increased need for in-country expertise Lack of focus on core competency BOT / SOT Joint Venture Dedicated Center Committed Sourcing Sub Contract Control

12 Offshoring Models Fully Owned S a v i n g s BOT / SOT Joint Venture Unique Hosted Model Dedicated Center Committed Sourcing Sub Contract Control

13 Engineering Throughput Productivity (Throughput) Time ( ) Onshore Offshore

14 Results Offshoring now part of Vignette s Corporate Strategy Offshore Engineering seen as a Strategic Differentiator Synergies between Engineering, IT-Apps, and Professional Services highest in Hyderabad Productivity is at or above pre-offshoring levels, with Engineering Costs 30% less overall Onshore teams no longer fear Offshoring model Achieved true 24-hour dev and testing cycles in the latest core WCM release Other business units are asking to leverage the Center of Excellence as a proven model U.S., Australia and India Development Centers all track to about the same Attrition Levels

15 Biggest Lessons If shifting from onshore- to offshore-model, let everyone know the final end state as early as possible Not every offshore partner can provide Product Development services Full Lifecycle of Product Development in the Offshore Center is a prerequisite to attract the real talent Architect/Design in US and Build/Test in India meets with limited success Cost Savings matters only to a point Quality and Productivity must be proven first Virtuous Cycle of innovation is then possible

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