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For its 10th anniversary the software company presents its key to success Ivan Ivanov, CEO of Scalefocus Founded in 2012 with a single office in Sofia, Bulgaria and with a team of just a few people, today Scalefocus is recognized by renowned Forbes, Deloitte and Financial Times as one of the fastest-growing companies in Europe and as the most innovative organization in Bulgaria, making an impact with over 500 successful projects for more than 300 clients worldwide. For 10 years the Scalefocus team has grown to close to 800 people, spread across 4 countries. The company has 7 delivery locations in Bulgaria, North Macedonia and Turkey, and a sales office in the US. The purpose of Scalefocus is to drive people’s success through technology and innovation: for its clients, for its team, and for the society. Since the very beginning, the focus of the company has been on providing tailored software solutions and high added-value services that empower its clients to grow and have a successful business transformation. Deriving from a strong technology expertise built over the course of the years, today Scalefocus specializes in key industry verticals such as ICT, financial services and insurance, healthcare & life sciences, and energy and utilities. These sectors have laid the foundation for the success of the company and remain a focus going forward. One of the highest priorities for Scalefocus is the development of its team and the creation of various opportunities for professional and personal growth. Leaders at Scalefocus are born naturally and grown from within the organization: this is unique for the culture and identity of the company. A major motivator for the Scalefocus team is the opportunity to be involved in complex and innovative projects for leading international businesses. The company also actively fosters knowledge-sharing and exchange of best practices across the organization through diverse initiatives – from mentorship programs, through technology and soft skill trainings, to sessions in various formats in which people discuss hot trends and best practices. Driven by a give-back mentality, Scalefocus has also been dedicated to developing the local communities in the countries in which it operates. In partnership with leading universities and schools, as well as through its own free-of-charge Scalefocus Academy, it has been actively training future software engineers, thus helping to retain talent in Bulgaria and the region and supporting the growth of the entire local IT ecosystem. Equally important is the continuous involvement of the company throughout the years in pro-bono projects and socially impactful donation initiatives and causes. “The vision of Scalefocus has always been for a leading, truly global organization which provides best-in-class software solutions and services for industry leaders around the world to help them grow, innovate and meet the challenges of tomorrow. We are actively working to create opportunities for professional development and growth for our colleagues who have been the key driver of the success of the company. We also aim to be the positive catalyst for the development of the entire IT ecosystem in Bulgaria and the countries in which we operate”, shares Ivan Ivanov, the CEO of Scalefocus.

Table of contents Applications and Examples of Big Data in Healthcare New Vaccines and Medications Identify Trends and Anomalies Strategic Planning Telemedicine Cybersecurity and Fraud Prevention Big Data Challenges and How to Overcome Them Quality of Data Complicated Virtual Experience Legacy Systems Cloud Transformation Outsourcing Big Data Services in Healthcare Conclusions Examples of Big Data in Healthcare Applications Healthcare analysts utilize data analytics devices and methods to improve health prevention, intervention and management. Thus, they increase healthcare efficiency, reduce costs, and improve the patient experience. Big data allows getting a centralized view of data from various sources within the organization, which is crucial to base insights on numerical evidence and to facilitate data-driven decisions. Here is how innovative applications can improve patient care. New Vaccines and Medications Big data can support healthcare experts in developing vaccines and medications, as proved during the COVID-19 pandemic. It accelerates the information processing and exchange, enabling them to accurately forecast the disease spread and its scope and velocity. Combining historical, real-time and predictive metrics, researchers can detect potential strengths and weaknesses of groundbreaking drugs. Identifying Trends and Anomalies Healthcare organizations also leverage big data to identify trends and anomalies based on patterns and events. It helps them develop treatment plans and predict at-risk patients. With the immense volumes of content processed daily, it would be virtually impossible for human experts to detect functional correlations and extract the valuable insights data analytics tools are capable of. Strategic Planning Big data and innovative HealthTech are at the core of modern healthcare and its evolution, as they accelerate the time to market for new medical products and services. Data analytics is critical for strategic planning as analyzing disease rates in different areas and identifying trends could serve as a basis for prevention or deploying additional services and personnel. Telemedicine Online video conferences, wireless devices, and wearables have ejected remote clinical services from the realm of science fiction and introduced them into our lives. Telemedicine is now used in consultations and diagnostics, remote monitoring, and personalized treatment plans. This way, clinics spare resources and focus on more urgent and complicated cases. Paperwork is cut down, while patients can be monitored anywhere and spend less time in hospitals. Cybersecurity and Fraud Prevention Most healthcare organizations have experienced data breaches and faced considerable sanctions as a consequence, not to mention losing patients’ trust and business. Data analytics is used to prevent security threats by identifying suspicious behaviors that reflect a cyber-attack. Fraud prevention is another area where analytics play a major role as it streamlines the processing of insurance claims and accelerates payments. Big Data Challenges and How to Overcome Them The sheer volume of healthcare data naturally means the industry faces issues that go beyond cybersecurity and information privacy. Read on to discover the most common challenges and how the Scalefocus remote development centers tackle them. Quality of Data Healthcare is an information-intensive sector. Therefore, high-quality data is crucial for the industry, as business decision-making depends on the underlying information. Unfortunately, most healthcare organizations lack the vision and experience to take advantage of their own data. It is often inaccessible or too extensive to evaluate, so they tend to overlook information and guidelines. Intelligent applications that prepare networked data for specific operational and clinical questions are piling up. Therefore, the industry needs service providers with the expertise to analyze patient data and present it in a user-friendly way. The Scalefocus custom software services and solutions for healthcare allow organizations to gain a unified view of patient care, empower patient self-service, improve diagnostics and personalized treatments. Complicated Virtual Experience As complex as Telehealth solutions are to develop, it is a different story when it comes to usage and maintenance, where simplicity is key. The COVID-19 pandemic revolutionized Telehealth UI/UX, and with technology becoming more accessible than ever, intuitive design and simplified functionalities are crucial. Thus, HealthTech improves consumer experience regardless of how tech-savvy the users are. Scalefocus has extensive experience in developing virtual experience solutions as proven by our award-winning SoFit innovative software device. SoFit alleviates the need for physical presence during therapy and provides on-demand Telehealth services, allowing for complete rehabilitation treatment. The solution accurately tracks the patient’s movements through a wearable bracelet and depth-sensing camera. Legacy Systems Modernization Legacy systems platforms create data silos that make a centralized view of data impossible, as silos hinder data-driven analytics and AI. As a result, extracting valuable insights becomes complicated, and performance inevitably suffers. The remote work pandemic and post-pandemic tendencies have changed the means for data storage, and cloud-based solutions have successfully been replacing on-premises data architecture. Businesses that have migrated to the cloud have improved customer experience, reduced costs, and taken advantage of usable content. At Scalefocus we utilize a data-driven approach to integrate unstructured data from different sources and break down silos. Our teams’ expertise in rebuilding our partners’ old systems allows them to leverage AI and ML innovation and increase revenue. Cloud Transformation Healthcare organizations often underestimate the importance of long-term cloud strategies and have doubts about their benefits. They tend to lack understanding of the whole process – what are the steps to take, in what order, which types of data can be migrated and when. As a result of inadequate planning, cloud migration does not meet expectations despite investments in pricy tech stacks. Scalefocus offers complete restructuring of cloud infrastructure and helps organizations develop holistic strategies to transform their outdated software solutions. We identify the role of the cloud within the companies and only deploy cloud apps that accelerate workflow automation and business processes in compliance with their business models and needs. Such expertise was especially apparent when our team developed and deployed a fully-fleshed software solution for one of our US partners – a clinical solutions provider offering next-generation healthcare coordination. We introduced over 20 new technologies to revolutionize their IT landscape with a modernized platform that rapidly builds and releases products on the market while achieving cost savings of at least 40%. You can find the entire case study here. Outsourcing Big Data Services in Healthcare Besides quality systems and databases, healthcare organizations often lack qualified software engineers to build, update, and maintain them. It is quite expensive to maintain in-house teams of healthcare analysts in the United States and Western Europe, so companies typically turn to nearshore and offshore software development centers. Areas like Eastern Europe and Asia offers a formidable and affordable talent pool that gives access to professionals with proven track records. Data analysts, AI and ML developers, UI/UX designers, project managers – you are really spoilt for choice and can recruit the cream of the crop. And that is not all – offshore teams and remote software development centers are flexible and easily scalable, and different time zones provide extended business coverage. Conclusions Big data already plays a prominent role in healthcare and impacts the research work, telemedicine, vaccines and medications development, strategic planning, fraud prevention – the list goes on. IT Outsourcing to the Scalefocus offshore development centers gives healthcare organizations the chance to work with top tech talent with vast expertise in both big data and healthcare. Our teams use end-to-end data strategies and tailored software solutions in the areas of Transactional Databases, Enterprise, and Data Analytics. We utilize data lakes as a foundation for ML/AI that enables healthcare organizations to take full advantage of their data. Contact us and let us know what challenges your business is facing, we will be happy to discuss the following steps.

Rewired returned to London, and so did we! Scalefocus was there to not only witness the great homecoming but network and collaborate during two days of conference sessions. Day 1 kickstarted the event with NHS executives discussing the role of the organization and its digital agenda. In the afternoon, the focus shifted towards digital transformation and biases in Artificial Intelligence (AI). Day 2 highlights included AI and Data sessions, electronic patient records, and lessons learned from the Covid-19 pandemic. Team Scalefocus was delighted to meet experts from the UK healthcare industry and exchange ideas about integration solutions, open data platforms, cloud migration, and cybersecurity, among others. We also discussed our healthcare digital transformation projects and collaborations with UK companies. The Scalefocus booth visitors were duly impressed by our own prototype – the SoundVision device and app for blind and visually impaired people. To wrap up, there was the much-anticipated final of Pitchfest 2022, with five companies taking the stage to pitch their innovative startups. Driving people’s success through technology and innovation has always been our purpose, too, so if you want to learn more about Scalefocus, you can check some of our healthcare solutions here: Scalefocus I HealthTech Solutions.

Key Takeaways: Custom software developers offer unique solutions carefully tailored for your business needs The perfect team of custom software specialists can meet and exceed your software demands Table of contents What is custom software development? Custom software development companies Service engagement models Five custom software development team roles Where to find the perfect development center? Summary What is custom software development? In today’s world, businesses of all sizes and from all industries are highly dependent on the use of latest technology and top-notch resources to stay competitive and follow the digitalization and innovation trends. To this end, custom software development can provide you with a unique set of software solutions carefully tailored to fit your business needs. Whether you need to deliver a smooth user experience, or optimize your workflow, flexible software development will make running your business easier. For its part, custom software development is essentially a software customized for a specific user or a group of users. The software is created in a way to meet the user’s needs, address a particular issue, or fulfil certain requirements. If you’re managing a business and you need a custom software solution, you can either dedicate an in-house team to build it, or you can look for a custom software development company. Custom software development companies When sitting out to create your project, you might initially have the desire to form your own perfect team of software developers. In other words, launch a development team be yourself. This, however, is likely to cost you a significant amount of money, time, and effort. A custom software development company will be ready to create software customized for your business. Ideally, such a company would already have a team ready to launch your project as soon as the order is received. Furthermore, a custom software development company will have all the technology, both hardware and software, not only to create your software solution but to implement it, manage and scale it. The best custom software providers work closely with the client, listen to their needs, and encourage effective communication. Equally important, they can complete the task within the agreed time frame and the predefined budget. In order to better understand the specifics around custom software developers, let’s take a look at several engagement models. Service engagement models A service engagement model, in the context of software development, is a framework that defines how a company provides its software services. More precisely, an engagement model governs how the IT vendor engages with the client. Features include duration of contract, responsibilities and obligations, commitments, payments, and roles. Generally, the level of engagement complexity and return on investment varies relative to the engagement model. For example, Staff Augmentation falls into the specter of low complexity and low return on investment. On the other hand, Managed Services have the potential to yield the highest return on investment while carrying an average rate of engagement complexity. Service engagement models can be divided into six different types: Consultancy & Technology Advisory Suitable for businesses who need to solve complex business challenges in an efficient way. You can expect the custom software provider to fully transform your project into a digital powerhouse. Staff Augmentation A convenient solution if you are looking to supplement your in-house team with external resources. Likely to bring flexibility and scalability and could be coupled with in-house work. Offshore Delivery Center Allows you to expand your team quickly and efficiently. Placed in a different location than yours, a dedicated team will be ready to tackle any IT challenges you may have. An ODC is usually offered and managed by an offshore development organization. Solution Development Fitting for a business looking to build scalable, resilient, and secure software solutions. A software developer will take up your project, design a business plan with key objectives, and move forward to implementation. Dedicated Teams Allows your business to hire specialists provided by a vendor company. Especially suitable for project-based work, this engagement model will guarantee you an entire team of experts will be focused on your project alone. Managed Services The software developer engages with the client by offering a set of services with specific KPIs and deliverables. Focus is on value creation and reaching business objectives. Well-suited for companies that need to focus on their core business, while an outsourced company handles non-core activities. Five custom software development team roles When you set out to find a custom software development company, you will most likely encounter a sea of information related to staffing, organization structure and team roles. Against this backdrop, it may be difficult to go through the many alternatives. For this reason, consider seeking out several key team roles that will make sure the vendor has the right structure. In short these are: Where to find the perfect software development partner? At first, looking for the perfect team packed with all of the above roles, features and attributes may seem like a daunting task. However, there are smart ways you can take that will help you narrow down the search. More specifically, you can divide your efforts by location and decide whether you want the provider to be onshore, offshore, or nearshore. To properly handle this task, you need to understand the differences between these locations. In short, onshore vendors are located within your country, while nearshore are those companies positioned in a nearby country, or the same continent. And offshore developments centers are those situated overseas, on another continent. While all three locations offer certain benefits, an elevated number of businesses is pivoting to offshore development centers. Having an outsourced team in a foreign country promises better scalability, extended business coverage, and budget optimization. To this end, consider looking at an offshore area for the perfect custom software development center that could deliver high-quality results, tailored specifically to your needs. Summary Custom software development, provided by Scalefocus, gives you access to unique software solutions, aligned with your requirements. Our experienced development teams are a perfect extension to your business and integrate seamlessly with your in-house teams. Check out our remote delivery center and see how we can set up your extended offshore and nearshore software development operations from framework to kick-off in just 45 days. If you want to know more about our services, send us a message with your inquiry and we’ll get in touch with you shortly.

Table of contents 1. Cost efficiency is key 2. Remote work is here to stay 3. Cybersecurity is paramount 4. Cloud on the rise 5. ML/AI – increased demand 6. IoT becoming ubiquitous 7. Why outsource to Eastern Europe Key Takeaways Postpandemic Outsourcing Trends for CEOs The COVID-19 related pandemic has changed everything, and businesses have had to adapt rapidly. Facing insecurity and potential losses, companies worldwide saw their remote partners and service providers pass the ultimate reliability test with flying colors. As the outcome of this dynamic period is very likely to define what happens to the world economy in the following few years, you can find our Top 7 Post-pandemic Outsourcing Trends below! 1. Cost efficiency is more important than ever Figures speak for themselves: 70 percent of the enterprises that participated in a recent Deloitte survey have singled out cost reduction as the most significant factor for IT outsourcing. It comes as no surprise, as adequate crisis management equals survival in times when the majority of businesses worldwide suffer substantial losses. Global recession does not imply pulling the plug on operations, transformations, and business processes, but it tends to reorder everyone’s priority list. Hence, flexibility is a distant second at 40% and time to market further down at 20%. Despite the preconceived (and often exaggerated) cons of remote outsourcing, offshore development centers offer the most cost-efficient solutions; therefore, their sizeable market share is expected to increase. Infographic source: https://www2.deloitte.com/us/en/pages/operations/articles/global-outsourcing-survey.html 2. Remote work is here to stay Doubtful at first, C-level executives have come to embrace the remote work aspect of the New Normal. Enterprises have suddenly become aware of how ridiculous office space rates are and how they can reduce costs when employees do their jobs from the comfort of their home offices. Moreover, it turns out the newfound flexibility and better work-life balance in a more relaxed working environment have resulted in better productivity, and now it seems there is no way back to the 9 to 5 office hours. Remote teams have proved that the lack of geographic colocation does not necessarily mean deteriorated communication with coworkers and clients or disruption of business processes. It does mean flawless cloud technologies are mandatory, though, as unobstructed access to various sourced data from numerous locations is what guarantees smooth workflow and seamless customer experience. 3. Cybersecurity remains paramount COVID-19 changed the dynamic of business overnight and enterprises quickly came to the realization that they needed to adapt in an even more agile manner by accelerating their digitalization processes. However, further digitalization and reliance on cloud services also mean more potential for cyberattacks and a necessity to protect the gigantic amounts of data operated. Being cyber-proof in a digital world is paramount and vendors who can safeguard their customers’ platforms will remain in demand. But they need to go the extra mile and utilize advanced digital operational resilience testing on top of observing the IT risk management international standards. 4. Cloud Computing is on the rise The future is digital. But so is the present. Only a couple of years ago, cloud and RPA solutions were perceived as transformative drivers, while they are currently fundamental to any outsourcing strategy and transaction process. They have simplified operations and improved data quality, hence decision-making, and are on the verge of making outdated systems obsolete. The pandemic accelerated this process: companies automate data entry and transcription tasks to free resources for value-added tasks. And at the same time, they outsource the storage of larger chunks of data and applications, which has proven to be more cost-efficient and easier to manage. 5. Increased demand for ML/AI The importance of ML and AI services for modern age business forecasting cannot be overstated, and their market share in IT outsourcing is expected to keep growing. Artificial Intelligence and Machine Learning increase efficiency and give businesses a competitive advantage while boosting their bottom line. They make it possible to extract valuable information from enormous quantities of data that could take ages to process, which is critical to make result-driven decisions. The reason is that uncertainty reduction tools that monitor actual performance can help base a business strategy on numerical evidence and predictive insights. AI and ML algorithms recognize items, events, and patterns that are undetectable even to experts. Therefore, they are instrumental to eliminate anomalies and find new opportunities such as predictive maintenance, customer segmentation, churn prediction, and minimization. 6. Internet of Things to become ubiquitous According to Statista, the number of IoT-connected devices is projected to more than double by the end of the decade. It is nigh on impossible to imagine modern life outside the mobile world of data, and the digital ecosystem expansion is not expected to slow down anytime soon. Once inseparable from the smartphone, mobile data is a proper metaverse of appliances nowadays. Outsourcing services give unlimited options IoT-wise and businesses already take advantage by outsourcing whole IoT ecosystems or fragments – development, testing, security, data analytics, etc. For example, the Scalefocus remote software development centers have in-house IoT development and quality engineering teams, IoT-specialized DevOps engineers, and even an R&D center, so we can be quite flexible in accordance with the customers’ business models and requirements. Infographic source: https://www.statista.com/statistics/1183457/iot-connected-devices-worldwide/ 7. Eastern Europe is the place to outsource to And no wonder – the quality of tech education there is exceptional, resulting in a rich talent pool to tap into. Two to three times lower developer wages and access to modern project management tools and programming languages also mean cost-effective and high-quality products. Moreover, quite a few of the region’s engineers, project and account managers have lived or studied in Western Europe or stateside, so their language proficiency and work ethic guarantee smooth communication and business processes. Time zone-wise, Eastern Europe is 7 to 10 hours ahead of the US, which means extended business coverage and remote development centers doing the costly US night shifts at local daytime and affordable rates. In Western Europe, eastbound nearshore outsourcing almost feels onshore now, as the EU membership of Bulgaria, Romania, or Poland equals visa-free and straightforward travel and transportation, similar legislation, and tax laws. Key Takeaways Remote work has played a big part in defining immediate postpandemic and long-term outsourcing trends. For the past two years, the Internet of Things, Machine Learning, Artificial Intelligence, Robotic Process Automation, cloud, and cybersecurity services have emerged as the most significant components of the ever-accelerating digitalization and don’t seem to be going away anytime soon. Companies of all industries and caliber are looking for vendors who can help them follow these trends, and Scalefocus is fully prepared to assist your business with our expertise that is treasured by our nearshore and offshore partners. Contact us today, we are looking forward to working with you!

This year HIMSS is back with a bang! It's been great to meet our friends from the industry again and see the event continues to drive thought leadership in healthcare innovation. Data-led solutions dominated the conversation on Day 1 as the panel accommodated discussions on AI, ML, and Data Lakes. Day 2 saw the focus shift to interoperability in healthcare, with special attention paid to revamping legacy systems and creating ecosystems of transparent, data-driven applications. The educational panels were also a hit and addressed patient experience and user design. Overall, the recurrent theme of the week was collaboration, with businesses increasingly teaming up to improve their joint offerings or collaborating to build more mutually beneficial HIT ecosystems. Team Scalefocus thoroughly enjoyed exchanging ideas with our colleagues and sowing the seeds of exciting future endeavors. The event closed with a keynote address by Olympic legend Michael Phelps who touched on mental health and the mindset of a champion in a thrilling grand finale. Scalefocus data experts have a proven track record in healthcare, so if you want to learn more about our solutions, you can check our website: Scalefocus I HealthTech Solutions We are also passionate about all things data – in fact, so passionate that we recently held a webinar on Healthcare Digitalization. You can listen to the recording here: Scalefocus | Healthcare Data and Digitalization

Table of contents Guide to safe IT outsourcing Research potential partners Project management is key Digital transformation strategy Cybersecurity Physical, Technical, Administrative security Key Takeaways How Safe Is IT Outsourcing? IT outsourcing can be very safe - you only need to invest in research, project management, digital transformation, and cybersecurity. Substantial cost reduction, improved customer experience, closing skill gaps with access to a broader talent pool to tap into… The list goes on and on. There are numerous factors for remote software development centers to play a significant role in digital transformation. But how safe is it to outsource overseas? While in-house teams might seem more manageable (if more expensive) to plan and control, IT outsourcing that is both profitable and secure is no rocket science. Guide to Safe Outsourcing Research potential partners To be on the safe side, you need to do your homework first. Eastern Europe is typically considered a safer region for overseas partnerships than the remaining major outsourcing destinations (Asia, Latin America, and Africa). This is especially the case with EU members such as Bulgaria, Romania, Croatia, Slovenia, Slovakia, and the Czech Republic. Having similar government policies and industry regulations to their western neighbours results in more transparency and common IT compliance. Political and financial stability also brings predictability to the business, and better conditions inevitably affect the product and service quality. It is true that different time zones elaborate communication with the USA, but when the offshore development center is 7 to 10 hours ahead (as in Eastern Europe), you can actually review the day’s work at the start of your business hours, which can be a huge advantage. After you have chosen the destination, get to the research and study the region’s big players – look up their ratings and reviews on specialized platforms, such as Clutch, where information is non-biased. You will also need to check the portfolios for projects similar to yours, as related expertise can accelerate the business processes and improve the end results and product quality. And then look for referrals, as their former or recent partners can give feedback on the actual collaboration with the service provider and any potential risks. Project management is key Impeccable project management is what ensures smooth sailing throughout the project, so none of your quality and safety requirements can be compromised. That is why all aspects of the cooperation need to be explicitly defined. Budget, volume, schedule, milestones, deliverables – comprehensive Scope of Work documentation is paramount. The same thing applies to technical specifications, so the company CTO’s involvement in their preparation is mandatory. Planning and communication are instrumental to the project’s success, so make sure everyone is on the same page at all times. Staying in the loop makes it possible to detect errors at an early stage, which will reduce costs and time for correction. Rewriting code towards or even after the project’s completion is never a great idea. Invest in Digital Transformation Outsourcing makes digital transformation simpler and less expensive, and without a digital transformation strategy, companies find it hard to adapt, lose their competitive edge and sabotage their own long-term survival. The service providers’ role is to support and guide their partners throughout the entire digital transformation process. A quality vendor needs to be proactive and suggest innovations in accordance with an established innovation concept that bundles the whole innovation process with a structured methodology for incentives. Digital Transformation equals data transformation and a whole new way data is organized, interpreted, and exploited. A development partner who is adept at data and data science will help you reorganize your data ecosystem – and then you can unlock the full power of AI, ML, and Advanced Analytics. Scalefocus has the necessary data expertise to help our partners extract the best of it. Cybersecurity is paramount Shifting to remote work has posed a batch of new challenges – going more digital more quickly means increased potential for cyberattacks. Companies are moving away from on-site data storage and towards cloud-based ecosystems of interconnected applications and need to update their cybersecurity strategies. Information security protection is crucial for all businesses, so service providers need to come up with future-proof solutions. To protect critical assets, comprehensive strategies and effective cyber security compliance programs must be in place at the very start of a partnership. Potential personal or any sensitive information leakage is reputation damaging and compromised confidential business data can have consequences of apocalyptic proportions. Vulnerable companies risk considerable sanctions and losing customers’ trust and business in the unwanted event of a breach. That is why remote development centers have no choice but to go beyond the security minimum and utilize modernized platforms where compliance updates can be executed constantly. Observing the IT risk management international standards is merely a foundation to build on. Advanced digital operational resilience testing also needs to be added to the standard functional, end-to-end, and performance testing. Other security measures Apart from cyber security, safety measures also need to include several other security components. Physical security - describes the level of protection and observation the service provider’s office is under 24/7 security guards, surveillance cameras, alarm systems, etc. Technical security – software and hardware for data protection and cyberattack prevention, including antivirus and data loss prevention software, firewalls, email filters. Аdministrative security defines non-disclosure agreements (NDAs), policies for internet usage, systems access, information protection, passwords, etc. Key Takeaways IT outsourcing seems inevitable when companies are in search of constant digital transformation in order to stay ahead of the competition. Of course, they have to choose wisely and pick service providers that will safeguard all related data and processes and make agility, product quality, and cyber security their prerogative. Scalefocus is known for its end-to-end software solutions and provides businesses with executive advisory support, vendor assessment, and policy and technical implementation. Our team of experts boasts profound industry knowledge that helps our advisory services meet security project goals in short time frames. Last but not least, we provide businesses with operational, engineering, and implementation services and support for building and maintaining a 3-TIER SOC. Contact us, and we will be happy to discuss how we can help your projects stay protected from cyber threats while maintaining your company’s digital transformation.

Table of contents Why outsource when you can do everything in-house? Cost reduction Rich talent pool Dedication and scalability Modern technology and quicker TTM Time zones How to outsource and where to start? Define goals and budget Scope of Work Outsourcing models Research locations Evaluate service providers Key takeaways How Can I Outsource My Software Project? In-house software development teams might have been the norm for many enterprises but already seem long past their heyday, and the ever-increasing market share of IT outsourcing is there to prove this. Fierce competition has forced companies of all sizes – from large enterprises to emerging startups, to optimize cost and resources while improving product quality, and neighbouring or overseas service providers readily offer a wide variety of solutions. Why Outsource When You Can Do Everything In-house? Cost reduction Indeed, in-house software development is typically perceived as a practical and convenient approach to business. But how cost-effective can it be to assemble and maintain a team of handsomely paid professionals compared to an up and running working unit from a region with much lower labor costs and a vibrant ecosystem of companies with solid technology expertise? The answer is “not really”, and it comes even before you calculate additional expenses such as infrastructure, rent, taxes, technology, HR... The list goes on and on. Rich talent pool Decide how much you’re willing to spend on having your operations outsourced. On the other end, keep in mind that location matters. More precisely, if you go for an onshore partner, it would cost considerably more than if you turn to an offshore center. Dedication and scalability Focus is key here – a dedicated team overseas is one hundred percent focused on the particular software project, while your employees can concentrate on the critical competencies concerning your core business. It is also much easier to scale up and down in accordance with your needs and the challenges of an ever-changing economic landscape. Modern technology and accelerated time-to-market State-of-the-art tools and the latest coding languages are paramount when it comes to modern technology. With offshore development centers, you get that as part of the package. As a result, business processes become more agile and accelerate time-to-market, much to your competitors’ disappointment. Time zones Different time zones might be inconvenient in terms of real-time communication and meeting schedules, but they come with the substantial positive of extended business coverage. For the past two years, remote work has been the norm, and the increased use of all sorts of technology has made round-the-clock support imperative. And time difference of 7 to 10 hours means the remote team will cover your region’s expensive night shift at their country’s daytime and regular rates. How to Outsource and Where to Start? Define your goals and Scope of Work, pick a location and outsourcing model, evaluate service providers and take it from there. Define your goals and budget A strategic approach is crucial to defining goals, priorities, and expectations as with any new venture. What is your product vision statement, and how much are you prepared to invest in terms of time, funds, and resources? Discuss these within your company and involve the CTO and specialists from key departments in the planning and decision-making process. Scope of Work documentation Your potential partners will need a profound understanding of the project schedule, volume, and budget, so comprehensive Scope of Work documentation is vital. Its purpose is to define the project timeline, milestones, deliverables, payments, etc. Clear communication ensures all stakeholders are on the same page throughout the cooperation. Keep in mind it is just as significant to determine what part of the workload you are willing to delegate and what remains outside of the project scope. Choose a suitable outsourcing model Aside from location-based (Onshore, Nearshore, and Offshore/Remote) and pricing (Time & Material and Fixed-Price) models, IT outsourcing can be classified according to the business relationship or the so-called relationship-based outsourcing models. The Project-Based model is the most popular in IT outsourcing. It applies to entire projects being delegated to a remote service provider after payments, schedules, and technical specifications have been agreed upon by both sides. From planning to the final product, the remote software center’s responsibility is to provide the expected quality by utilizing its own tech stack, infrastructure, and workforce. The outsourcing company has minimal involvement in the workflow, which clears time and resources for higher priority aspects of their business. Still, they get to define how often the tech vendor project manager reports, so they follow the work progress without personally controlling or influencing it. The Project-Based model is ideal for businesses with limited resources or overly busy with their core product. The Dedicated/Managed Team model is a flexible model for long-term cooperation. The outsourcing companies decide what specialists they hire for specific tasks that are lower on their radar. Those can be a set of, let’s say, iOS developers, QA engineers, and customer support. However, enterprises often prefer to go closer to hiring a full-blown team, including UI/UX designers/analysts, DevOps, back-end developers, etc. A well-oiled working unit is more likely to meet deadlines and provide outstanding quality. The clients also determine their level of involvement and control and if they hire a project manager on-site or the remote team reports directly to them. Staff augmentation is simply expanding your in-house team for a short period by employing a small development unit for a specific task or a fragment of a more significant project your developers find challenging. It is an uncomplicated way to scale up and down your own company in a more cost-efficient manner than hiring in-house, but the project-based and dedicated team models are more viable when long-term cooperation is required. Research locations There are a few factors to consider when outsourcing a specific software project. Development rates are essential, but companies usually avoid the cheapest services, as questionable execution is almost inevitable, and expenses for fixing compromised code or starting from scratch can pile up at a later stage. Cultural differences between regions also play a role, and working conditions in Asia can be far from ideal, which is also a precondition for lower quality. On the other hand, Eastern European countries such as Bulgaria, Romania, and Poland provide quality tech education and language proficiency. Moreover, numerous local developers and project managers have lived and studied in Western Europe or stateside, which guarantees smooth communication and business processes. Evaluate service providers After you have picked a country to outsource your project to, you will need to narrow down the selection to a handful of remote development centers. Look up your potential partners’ profiles, ratings, and reviews at specialized websites such as Clutch and Deloitte, as well as their own websites and social media channels and their portfolios. Research what technologies and services they provide, what is their workforce and capacity, and double-check each detail with your tech team. You will also need to look for referrals, as their former or more current partners can give you insights into their processes, agility, commitment, and reliability. Key Takeaways The first thing that comes to mind when outsourcing software projects is mentioned has to be cost reduction. It is hard to argue with statistics, but there is so much more that makes myriads of businesses look for remote cooperation – scalability, agility, top-shelf technologies. Scalefocus is among the companies that prove outsourcing business models are not ones for the future – they are here to stay. Our teams have already helped enterprises and startups from all over the world grow, and we cannot wait to hear from you and find out how we can assist you, too. Contact us today, tell us about your new project, and let us discuss the following steps!

Table of contents Software outsourcing definition Reasons to work with an outsourcing partner Types of software outsourcing Conclusion Key Takeaways: Outsourcing software development can bring key advantages to your business and work output Reasons to work with an offshore partner include better scaling, time and cost optimization What is software outsourcing? Software outsourcing is a business practice that allows a company to hand over its software development to an external provider. By doing this, you could reap multiple benefits as a development center handles a flurry of operations. Outsourcing software development projects has become even more popular since the coronavirus pandemic swept across the world. Businesses quickly became limited in their daily operations and needed to find an effective and timely solution. In that context, a spate of companies is embracing the “new normal” which suggests remote work, even from different continents. US companies, for example, are drawn to the advantages offered by an offshore software partner. Further, multifaceted development centers in Eastern Europe present attractive incentives for both overseas businesses and European companies. It is important to note that software outsourcing is suitable for large and small businesses alike. As a matter of fact, no matter how large your business is, you are likely to find a number of reasons that could compel you to look for an outsourcing partner. Key benefits of working with an outsourcing partner Software outsourcing is quickly gaining traction as a powerful tool to enhance productivity and accelerate growth. To illustrate, statistics collected by Deloitte show businesses look to outsource for five key reasons: In order to better understand how your business could elevate performance, let’s dive into the details. 1. Scaling faster The ability to scale up or down is crucial for any operation that might require flexibility. Creating capacity by scaling is an opportunity to build better services and products and form stronger relationships with your clients. In addition, scaling allows for more flexible work arrangements. In other words, your offshore service provider takes care of any workload you could outsource. On this note, the same Deloitte research states that 57% of the organizations polled believe outsourcing enables them to stay focused on their core business activities. 2. Cost optimization During the pandemic, cost optimization has been increasingly sought after from small and large businesses alike. The coronavirus-induced economic meltdown, especially in 2020, prompted organizations to give priority to cost reduction. For its part, software outsourcing helps you stay ahead in a world where it could be increasingly difficult to stay on the payroll and keep all your expenses in check. In that context, skyrocketing inflation around the world is already undermining supply-chain processes, as prices for virtually everything are going up. With this in mind, running a technical team is a lot more affordable in places like Eastern Europe than it is in the US or Western Europe. Our extensive remote delivery experience at Scalefocus shows that a business could externalise and reduce operational costs by up to 50%. 3. Better speed to market Another factor at play when looking at software outsourcing is the better speed to market. With the growing attention to digitalization, businesses have been rotating to providers who enable them to leverage the latest technologies and accelerate their product release cycles This is intended to help them improve their overall time to market, and speed up their product release cycles. With the Scalefocus remote delivery center, businesses receive a detailed ramp-up strategy for the first 12 months which is tightly aligned with their long-term objectives. Moreover, we provide customers with adjustable team composition to match varying project needs. 4. Enhanced user experience User experience is key if you’re aiming to maintain a strong presence as a leader in your industry. Not only do you need to continuously find ways to satisfy your clients, but you also need the right architecture to build out new solutions to achieve it. To this end, a proper IT outsourcing center could do all that heavy lifting for you. You can either hire in-house staff, spend time on training, and have them sit idle once the project is finished. Or you can hire a software development team readily available to meet all you might require for any specific project - long-term or short-term. 5. Competitive advantage A major benefit to consider when going to a software development center is whether it could give you a competitive advantage. Forward-thinking organizations are likely to plan ahead for any new developments that could come upon the market. Therefore, it’s crucial for a company to always be looking for ways to grow and expand. In this light, the watchful eye of a strategic outsourcing partner will make sure there will be no surprises out there and you won’t lag behind your competitors. Types of outsourcing Outsourcing in 2022 can take many shapes and forms. The most common ones, however, are just a few: Offshore development centers are located in distant regions. If your company is based out of the US, offshore outsourcing for you would mean Europe, India, or Ukraine. Benefits of offshore IT centers include cost reduction, extended technical and customer support through time zone differences, and a richer and accessible talent pool. Nearshore IT centers will have their physical location near your business. In other words, this would be usually in the same, or similar, time zone, and will most likely have the same work culture. Additionally, nearshoring generally gives you smoother communication. Onshoring, also known as homeshoring, is practically the handling of your operations by a company located within your own country. This is usually accompanied by relatively high costs, and potentially workforce shortages. Similar to the nearshoring, onshoring allows for simpler communication and sharing the same work culture. Multisourcing is a combination of the above in a way that allows you to diversify by working with several vendors from various locations. For example, you may want your technical team to be outsourced in an offshore location, while you keep your management onshore near you. Conclusion Software development, particularly IT outsourcing, is an attractive opportunity for a growing number of businesses looking to expand above and beyond. With over 250 people dedicated to remote delivery centers across the globe and an average Net Promoter Score of 9.3 (out of 10) among all of those engagements, Scalefocus is a trusted remote delivery partner who helps businesses innovate, operate and scale effectively in a truly digital world. To learn more about Scalefocus, simply head over to our company page or directly send us a message.

Table of contents What is IT outsourcing? What does “outsourced IT company” mean? Five skills your outsourced IT company needs to have Conclusion Key Takeaways: Top five skills for an outsourced IT company span across the entire software development lifecycle They include tech expertise, reliable customer service, software dev talent, cloud computing & mobile app dev What is IT outsourcing? IT outsourcing is the practice of having external service providers handle your business operations related to information technologies such as software development, mobile app development and more. In the ever-growing world of business, those who don’t innovate are likely to drop out from the fierce competition and battle for market dominance. Then, how can you compete against thousands of other companies with various sizes? One of the best ways is to look for an IT outsourcing software provider. What you can expect from such a partner is a constant care for your business needs. You could assign virtually every IT-related responsibility to a third-party vendor. As a result, your in-house teams would be stripped from a number of daily or mundane tasks. Sectors like software and hardware maintenance, hosting, cybersecurity and many more could be completely outsourced. Regardless of the service you want to outsource, the benefits of doing this are multiple. Once you transfer certain business operations to a nearshore or offshore development center, you will free up time to focus on your core business. A dedicated team of experts located anywhere you choose will be making sure every aspect of it is running smoothly. What does ‘outsourced IT company’ mean? An outsourced IT company is an external service provider which acts as a third-party vendor to your business. This is essentially an IT company that will handle any IT-centered operation you decide to assign to it. Whether it will be located onshore, within your country, or offshore, overseas, you need to make sure this development center will be the right one for your business. Ideally, an outsourced IT company will constantly add value to your business. On this note, a thorough and in-depth look at certain locations might help you get a clear view of potential outsourcing partners. To help you navigate through a sea of possible selections, consider these factors: Define a complete score of work No matter the service you decide to outsource, make sure you have a precise idea of the scope of work. For example, write a clear document that will highlight key operations you’d like to have transferred to a potential outsourcing partner. Set a well-defined budget Decide how much you’re willing to spend on having your operations outsourced. On the other end, keep in mind that location matters. More precisely, if you go for an onshore partner, it would cost considerably more than if you turn to an offshore center. Market reputation While scope of work and cost optimization are important, it’s equally important to know who you are dealing with. To this end, make sure your outsourcing partner has a good reputation in the global market. Once you have these factors taken into consideration, it’s time to closely examine your potential outsourcing partner. Five skills to look for in an outsourced IT company The five skills to look for in an outsourced IT company are: tech expertise, reliable customer service, software development talent, cloud computing & mobile application development. A company’s skillset is among the highest priorities when selecting your outsourced partner. While it may seem daunting to evaluate a company in this regard, there are five top skills you should look out for. 1. Technology expertise It goes without question that the outsourced IT company needs to have a stellar reputation in handling technological tasks. On this front, you have to make sure you will select a high-quality, solution-focused company that you can rely on at all times. You can factor in different time zones as they allow you to have around-the-clock support, particularly if your partner is located in Europe. That way, a dedicated tech team will be constantly monitoring your system, ensuring everything is operating normally. 2. Reliable customer service From chatting with an online agent, to handling tickets from website contact forms, an outsourced IT company must be able to deal with a stream of client requests. A reliable customer service will undoubtedly result in an efficient workflow. In turn, this will alleviate a significant burden from your shoulders. You will be able to focus on your core responsibilities while your outsourcing partner is making sure client requests will be attended in a timely manner. 3. Software development talent IT and software development are hot commodities in 2022. In this light, a well-equipped and fully-prepared team of experts could add tremendous value to your project. Digital transformation is only possible with the help of IT specialists ready to digest any task you might throw at them. Therefore, outsourced engineers, computer programmers, web technicians, and network operators will be a prime key to your company’s success. 4. Cloud computing Businesses are increasingly moving to a cloud-based environment. As a matter of fact, the lack of resources is among the biggest challenges for companies looking to move into the “cloud.” Cloud computing is a major driver for business growth and continued development. On that note, it’s important to find a development center that will meet your demand for high-quality resources. 5. Mobile application development A growing number of businesses outsource their mobile application development. By doing this, they expect to lower the cost for development while they stay focused on core activities. This said, be sure to research into the competencies of your potential outsourced IT partner and see if they have developed mobile applications in the past. Conclusion Outsourcing anything to an IT company will enable you to bring in more profits while keeping operating expenses down. With over a third of our teams dedicated to offshore and nearshore software delivery centers around the world, Scalefocus is a trusted remote delivery partner who helps businesses innovate, operate and scale effectively in a truly digital world. Contact us now to get more insight into what we do and how we can get involved with your project.

35 students will start their Golang training in Scalefocus’ software academy, in partnership with Schwarz IT Bulgaria With the rapid development of the IT sector and the entry of more and more companies on the Bulgarian market, the need for qualified specialists in a variety of technological areas is growing. One of them is the popular Golang programming language (or Go for short). Used mainly for backend development, it is one of the most productive languages with a highly dynamic tech community worldwide. Therefore, it is no surprise that the need for Go specialists in the country is growing. To address the increased demand on the market, Scalefocus dedicates the fifth edition of their software academy to Go. A partner for the new season of the Academy is Schwarz IT Bulgaria. The two companies join forces to achieve a shared goal – training of future specialists who are preparing to start their IT career. This way they prove in practice that instead of competing to attract new talent, they can partner successfully, investing in the education and qualification of young people. From its establishment until today, Scalefocus Academy works actively to develop young talents in Bulgaria and the region. So far there are more than 140 students who have successfully graduated the program and more than 50 have started their IT career in Scalefocus. The new season has officially started this week with 35 students, who got accepted into the program after a tough selection process. In the next 90 days they will upgrade their theoretical knowledge with practical skills in Go by working on real client projects. All lessons will be held online and the course is entirely free of charge. The Go-to guide for this edition of Scalefocus Academy is Preslav Rachev – a software engineer and entrepreneur with a passion for building and sharing knowledge. With a vast technical expertise in different fields, Preslav has discovered three specific tracks that he tends to stick to. His work with Go for backend development is one of them. It gives him the freedom to prototype ideas quickly and easily scale to production-grade services, allowing him to solve specific business problems. After successfully graduating their Go course, students will have the opportunity to start their IT career immediately in either one of the two partnering companies – Scalefocus and Schwarz IT Bulgaria. With over 500 successfully completed projects, Scalefocus is a leading software development and digital services company, a trusted technological partner by companies in North America, Europe, and the Middle East. The Go graduates from Scalefocus Academy will work on projects for Fortune 500 companies, innovative start-ups and established leaders across a variety of industry verticals. Schwarz IT Bulgaria is the digital heartbeat of the leading global retail group Schwarz. The group, headquartered in Neckarsulm in Baden-Württemberg, brings together Lidl and Kaufland retail chains known in Bulgaria as competitors, the recycling company Pre Zero and the manufacturing company Schwarz Produktion. Schwarz IT Bulgaria services and provides IT solutions to the four divisions of the world's leading retail group with around 500,000 employees worldwide and over 12,900 stores in more than 30 countries. As one of the central IT service providers, Schwarz IT Bulgaria is responsible for the provision of IT infrastructure, platforms and business applications.

The series of online events organized by the software development company Scalefocus shares hot trends, best practices and real-world examples on various technology topics One of the main goals of Scalefocus is to actively support the development of the IT community in Bulgaria and the region. A key step in this direction are all company initiatives focused on sharing knowledge and best practices gained by the Scalefocus team through their work on various projects for customers around the world – from Global Fortune 500 companies to disruptive technology startups. This has motivated the launch of the initiative Tech Savvy Talks – a series of regular online events which the company organizes on diverse technology topics. At the events, members of different technology teams discuss the hottest trends, share their knowledge and practical lessons learnt from their expertise. The first season of the Tech Savvy Talks took place in the autumn and raised a lot of interest in Bulgaria, Northern Macedonia, Turkey, as well as in a number of other countries. Tech Savvy Talks, Season 2 will start officially on February 16 with an event on a Front-end related topic. The new edition will also include sessions from other technology domains: .NET, Quality Engineering, Data, Artificial Intelligence and Machine Learning, Software Architectures, Go. "We started the initiative motivated by the desire to bring our contribution to the IT community through the presentations of our seasoned Tech Savvy heroes, who are eager to share their knowledge and real-world experience. The events have sparked a lot of interest in the IT sector in a number of countries. This shows that Scalefocus is a leading company, with a diverse technology expertise and a keen strive for innovation. Motivated by the successful first season, we are even more passionate to present new and hot topics to the IT community', shares Katerina Georgieva, Head of Technology at Scalefocus. Learn more about the upcoming sessions and save your seat for them at the Tech Savvy Talks page in Eventbrite.