The Project have been approved on May 9th 2006. During the Start-Up project, the Management of DTT and GlobeTeam will meet twice in Hanoi to discuss the assessment and to decide on possible corrective actions
Project backgroundGlobeTeam is a leading provider of Microsoft technology based application solutions in Denmark. Currently, the limiting factor to the growth of GlobeTeam is the lack of qualified IT professionals.
GlobeTeam has looked into the prospect of teaming up with a software company outside Denmark, where a sufficient number of highly educated IT professionals are available at a lower cost. This will enable GlobeTeam to provide a more attractive offer to the market.
Vietnam has been chosen as one potentially attractive country for the outsourcing idea. Consequently, in October 2005, GlobeTeam went to visit a number of potential partners in Vietnam identified by the B2B Programme.
Among the visited Vietnamese IT companies, DTT appeared to GlobeTeam to possess the right size, qualifications, vision and leadership to form a successful business venture with GlobeTeam. The two companies share the willingness to co-operate with a view to develop a mutually beneficial business relationship.
In March 2006, with a support of the B2B Programme, DTT went to visit GlobeTeam to discuss in details the co-operation strategy. A Memorandum of Understanding was drawn up and signed, committing the two parties to work together to explore how to develop best their business relationship.
Subsequently, the two companies decided to examine the prospects of co-operation through practical work within the frame of a start up project. Experience gained from this phase will serve as a base for decisions regarding the future long-term co-operation, potentially a Joint Venture.
Project Objectives
The Start-up project has the following objectives:
- To get a mutual understanding of the businesses of the two partners in order to develop a common model, suitable for a future joint venture.
- To demonstrate that it is possible to transfer the required technology from Globeteam to DTT, in order for DTT to perform system development using GlobeTeam’s methodology and technology platform.
- To establish an effective process for communicating user requirements and production status, problems and suggestions between the partners across geographical, cultural and time zone boundaries
- To test the efficiency and quality with which off-shore work can be done and delivered to GlobeTeam from DTT, and to identify bottlenecks and weak spots for improvement before committing to high-risk commercial projects.
- To examine and establish the commercial and legal basis for a long-term business relationship through a feasibility study of creating a joint venture.
The co-operation The approach taken in the Start-up project consists of the following steps:
- Establish the necessary capabilities in DTT, Hanoi.
- Test these capabilities through internal projects for GlobeTeam.
- Test capabilities on external projects for GlobeTeam customers.
- Establish the foundation for long-term co-operation and growth (Joint Venture feasibility).
Three or four internal projects and a few external project opportunities have already been identified.
Overall planning and identification of other external opportunities is ongoing, but will only be taken forward when the success of the Start-Up project has been proven.
To implement the Start-up project, DTT will provide office facilities, hardware and software facilities, as well as allocate necessary staff.
GlobeTeam will transfer its key technologies i.e. ChangeDriver development system and the Microsoft VSTS – Visual Studio Team Services to DTT by installation of these systems in DTT office and training DTT staff in using the technologies, so that they get familiar with the work processes of GlobeTeam, particular the ChangeDriver technology. Other training sessions will also be carried out.
Furthermore, small assignments from GlobeTeam will be given to DTT to be solved as a part of the start-up project. A Project Manager from GlobeTeam will be seconded at DTT to oversee the initial set-up of resources, perform and co-ordinate technical assistance and training activities as well as facilitate communication between GlobeTeam and the DDT. Generally, the Project Manager will act as a mentor, coach and communication channel between the partners.
During the Start-Up project, the Management of DTT and GlobeTeam will meet twice in Hanoi to discuss the assessment and to decide on possible corrective actions such as:
- Process or Methodology changes
- Staff changes
- Training needs
- Infrastructure suitability
Corrective actions will be implemented and subsequently more challenging assignments will be provided to DTT GlobeTeam.
In the last phase of the Start-up, a small feasibility study will be conducted, identifying the best way to move the co-operation forward into a long-range, full Joint Venture, geared for growth. The feasibility study will address visions and objectives, strategies, budget, financing, markets, technologies, roles, responsibilities, work methodologies and legal structure.
Based on the result of the SUP and the feasibility study, the partners will decide whether they will continue the co-operation as laid out in the feasibility study.