Vestas Services Philippines, Inc. - IDG

Vestas Services Philippines, Inc.
Establishing Application Services in Manila, Philippines
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About Vestas
History
1898:
Blacksmith H.S.
Hansen arrives in
Lem
1945:
VEstjysk STaalteknik
A/S becomes VESTAS
1979:
First turbine after
agricultural vehicles, etc.
1987:
Vestas
Wind Systems A/S
1991:
Turbine no. 1,000
2004:
Merger: NEG
Micon & Vestas
2005:
Ditlev Engel, CEO
2010:
Wind. It means
the world to us.
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About Vestas
Vestas at a glance
Today, we have installed over 46,000 turbines in
69 countries around the world.
Vestas’ track record >>
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A truly global IT organisation
Almost 650 employees world-wide (about 25% in Global
Shared Service Centre)
4 main HUBs: Denmark, Manila, Portland, Singapore
Represented at more than 40 different locations
• 49% Denmark
• 25% Manila
• 1,6% Singapore
• 6% USA
• 18% other (incl. Singapore 2%)
• - 30 different nationalities
Gender segregation:
• Male employees: 76%
• Female employees: 24%
• Male leaders: 74%
• Female leaders: 26%
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Agenda
Content of presentation:
1. Strategic decision
2. Manila
3. Initial build up and consolidation of operations
4. Build up of Application Services development
capabilities
5. Lessons identified
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Agenda
Content of presentation:
1. Strategic decision
2. Manila
3. Initial build up and consolidation of operations
4. Build up of Application Services development
capabilities
5. Lessons identified
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Strategic decision
Background
‣ November 2009 – Introduction of plan – build – run terminology in Group IT
‣ 200 additional employees needed during 2010 – majority in Q1
‣ Decision to pursue low cost sourcing countries for fast and inexpensive ramp-up
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Strategic decision
Background
Analysis of options:
Advantages
Limitations
Offshore Outsourcing
Cost saving
Access to better and always improving
technologies
Ability to benchmark to industry
standards
Demand management
Less transparency
Relationship becomes crucial to long
term success
No direct control over resources
IPR
Internal Offshoring
Cost saving
Process control remains in-house
Process and solution knowledge remains with
the organization
Employee retention – talent management
Higher cost compared to outsourcing
Demand management
Lack of internal motivation for being successful
Communication and R&R
‣ Vestas decided to establish a captive IT center in order to remain in control of
technologies, knowledge, employees
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Strategic decision
Selection process
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Strategic decision
Countries in scope
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Agenda
Content of presentation:
1. Strategic decision
2. Manila
3. Initial build up and consolidation of operations
4. Build up of Application Services development
capabilities
5. Lessons identified
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Manila
Some facts
‣ 103 million people live in the Philippines – 12 million in Metro Manila
‣ 80 million mobile phones in use, 6.7 million land lines
‣ Highly influenced by Spanish and American culture
‣ Primarily Christian (Catholic) population (92%)
‣ Political unrest in the Southern provinces around Mindanao and the Sulu sea – not
influencing operations in Metro Manila
‣ Natural disasters occur, but is only influencing operations rarely
‣ Time zone is GMT +7
‣ Makati City (Vestas location) is one of the main business districts in Manila
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Agenda
Content of presentation:
1. Strategic decision
2. Manila
3. Initial build up and consolidation of
operations
4. Build up of Application Services development
capabilities
5. Lessons identified
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Initial build-up and consolidation of operations (1)
Overview of events
Nov 2009
• Analysis and
selection
Dec 2009
- Jan
2010
• Implementation
• Legal entity
• Initial
recruitment
Feb –
Dec 2010
• Build-up
Jan 2011
• Build-up and
maturing
Q1
Q2
Q3
Q4
• ITSC
• ITOC
• XA
Operatio
ns
• Server
support
• Network
support
• SAP
support
• Microsoft
developm
ent
• SAP
developm
ent
• Global
responsibi
lity for
ITSC and
ITOC
moved to
Manila
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Agenda
Content of presentation:
1. Strategic decision
2. Manila
3. Initial build up and consolidation of operations
4. Build-up of Application Services
development capabilities
5. Lessons identified
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Build-up of Application Services development capabilities
Internal offshoring
Critical factors to be considered:
‣ Internal bias
‣ Creation of success stories in order to demonstrate capability and potential
‣ Process adherence (in order to succeed with distributed software development – DSD)
‣ Knowledge transfer
‣ Advantageous in captive centers compared to offshore outsourcing
‣ Allocation of funds and time
‣ Time and patience
‣ Talent retention
‣ Paramount to be able to retain talents in captive center as well as in main center in order to
succeed with above key factors
Target/Drivers
To establish the Manila office as a development hub
To utilize existing management structure in order to avoid additional overhead
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Build-up of Application Services development capabilities
How to work – Distributed Software Development model – Virtual teams
Minimum requirements:
Effective communication between project
members
Virtual Co-location tool to enable
knowledge sharing, code sharing etc.
Full compliance with a consistent process
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Agenda
Content of presentation:
1. Strategic decision
2. Manila
3. Initial build up and consolidation of operations
4. Build-up of Application Services development
capabilities
5. Lessons identified
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Lessons identified
DK:
Change management in DK need to be carefully planned and executed. PH can
easily be seen as a treat to employees.
Virtual line management not to be underestimated.
Establish of Host Management concept
Get the right tools, Telepresence, Video conference and OCS.
Equal treatment, no A and B-team. Invest equally in teams.
Be open with your ambitions, there is nothing to hide.
Allocate your “best” man to be on site, good signal both in DK and PH.
PH:
Start with the low-hanging fruits.
Most skill sets are available in the market
Basic requirements are in place for Application Services to establish hub
Internal referral can be used but all applicants need to be screened carefully
The lack of local management can pose a risk in terms of efficiency but will add
overhead
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Lessons identified cont.
PH:
Remain in control, but do it with cultural understanding.
Try to measure efficiency, closed ticket, OSS etc.
Tight contact via local DK-manager to Danish Mngt team.
Start to network with other foreign companies, lot’s to gain/learn.
Develop business continuously via local externals etc, don’t be satisfied there are
more to do.
Watch out, the recruitment approach/process is different!!!
Get yourself a local partner, it will prevent you from mistakes.
Misc:
Need for collaboration tools in order to successfully establish virtual teams
Application Services presence in Manila can potentially improve the SIM process
Strong Process adherence is key
DSD model must be considered in relation to PEM
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Thank you for your attention
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