Vestas Services Philippines, Inc. - IDG.se · PDF file3 About Vestas Vestas at a glance Today,...
Transcript of Vestas Services Philippines, Inc. - IDG.se · PDF file3 About Vestas Vestas at a glance Today,...
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 >>
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
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1. Strategic decision
2. Manila
3. Initial build up and consolidation of operations
4. Build up of Application Services development
capabilities
5. Lessons identified
Content of presentation:
Agenda
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1. Strategic decision
2. Manila
3. Initial build up and consolidation of operations
4. Build up of Application Services development
capabilities
5. Lessons identified
Content of presentation:
Strategic decision
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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Background
Strategic decision
Analysis of options:
Vestas decided to establish a captive IT center in order to remain in control of technologies, knowledge, employees
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Background
Offshore Outsourcing Internal Offshoring
Advantages
Cost saving Cost saving
Access to better and always improving
technologies
Process control remains in-house
Ability to benchmark to industry
standards
Process and solution knowledge remains with
the organization
Demand management Employee retention – talent management
Limitations
Less transparency Higher cost compared to outsourcing
Relationship becomes crucial to long
term success
Demand management
No direct control over resources Lack of internal motivation for being successful
IPR Communication and R&R
Offshore Outsourcing Internal Offshoring
Advantages
Cost saving Cost saving
Access to better and always improving
technologies
Process control remains in-house
Ability to benchmark to industry
standards
Process and solution knowledge remains with
the organization
Demand management Employee retention – talent management
Limitations
Less transparency Higher cost compared to outsourcing
Relationship becomes crucial to long
term success
Demand management
No direct control over resources Lack of internal motivation for being successful
IPR Communication and R&R
Strategic decision
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Selection process
Strategic decision
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Countries in scope
Agenda
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1. Strategic decision
2. Manila
3. Initial build up and consolidation of operations
4. Build up of Application Services development
capabilities
5. Lessons identified
Content of presentation:
Manila
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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Some facts
Agenda
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1. Strategic decision
2. Manila
3. Initial build up and consolidation of
operations
4. Build up of Application Services development
capabilities
5. Lessons identified
Content of presentation:
Initial build-up and consolidation of operations (1)
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Overview of events
Nov 2009
• Analysis and selection
Dec 2009 - Jan 2010
• Implementa-tion
• Legal entity
• Initial recruitment
Feb –Dec 2010
• Build-up
Jan 2011
• Build-up and maturing
Q1
• ITSC
• ITOC
• XA Operations
Q2
• Server support
• Network support
• SAP support
Q3
• Microsoft development
• SAP development
Q4
• Global responsibility for ITSC and ITOC moved to Manila
Agenda
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1. Strategic decision
2. Manila
3. Initial build up and consolidation of operations
4. Build-up of Application Services
development capabilities
5. Lessons identified
Content of presentation:
Build-up of Application Services development capabilities
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 overhead16
Internal offshoring
Build-up of Application Services development capabilities
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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
Agenda
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1. Strategic decision
2. Manila
3. Initial build up and consolidation of operations
4. Build-up of Application Services development
capabilities
5. Lessons identified
Content of presentation:
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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Copyright Notice
The documents are created by Vestas Wind Systems A/S and contain copyrighted material, trademarks, and other proprietary information. All rights reserved. No part of the documents may be reproduced or copied in any form or by any
means - such as graphic, electronic, or mechanical, including photocopying, taping, or information storage and retrieval systems without the prior written permission of Vestas Wind Systems A/S. The use of these documents by you, or
anyone else authorized by you, is prohibited unless specifically permitted by Vestas Wind Systems A/S. You may not alter or remove any trademark, copyright or other notice from the documents. The documents are provided “as is” and
Vestas Wind Systems A/S shall not have any responsibility or liability whatsoever for the results of use of the documents by you.
Thank you for your attention
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