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Distributed development: ukraine vs china

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  • 1. Distributed Development: Ukraine vs China vs. Alex Belelovsky Director CAM Product Line Frontline PCB Solutions alex@frontline-pcb.com May 11, 2011 1
  • 2. Agenda • Introduction – Frontline and our distributed activities • China vs. Ukraine – various aspects May 11, 2011 2
  • 3. Frontline PCB Solutions • The leading global provider of pre-production CAM and engineering software solutions for the PCB industry • An Orbotech Mentor Graphics JV, est. 1998 • ~120 employees • ~55 in Yavhe, Israel (HQ and R&D center) • ~15 in ShenZhen, China (QA, CS, R&D) • ~50 worldwide in Orbotech offices (Sales and CS) May 11, 2011 3
  • 4. Frontline China – close up • Established in 2006 as QA department’s extension • A strategic move: recruit people from the PCB industry • • (our customers) who are f ili with our products and ( t ) h familiar ith d t d train them to be QA engineers Hosted by Orbotech China (offices, admin, etc.) y ( ) Act in parallel with QA team in Israel, managed by a local manager • R&D activities in China – established in 2008 • Plug-in applications Plug in • Act as part of the R&D team in Israel, managed by a team leader in Israel May 11, 2011 4
  • 5. Frontline activities in Ukraine • Outsourced to Ukraine • Established late in 2009 • Project based outsourcing • Infrastructure porting • Web-client • Service applications • Managed by Ignite’s PM May 11, 2011 5
  • 6. May 11, 2011 6
  • 7. Accessibility • GMT+8 (no Daylight Save Time) ) • Direct flights to Beijing g j g and Honk-Kong ~10 hours May 11, 2011 • GMT +2 (Daylight Save Time +1) ) • Direct flights to Kiev and g 3 other cities ~2-3 hours 7
  • 8. The Market • Emerging Market • Mature Market • ~500,000 SW • ~200,000 SW • Professionals in SZ area only >30% annual growth • Hot and unstable May 11, 2011 • Professionals countryy wide 10~15% annual growth • Fairly stable 8
  • 9. Education • Small number of highly- • “Old Soviet school” ranked universities • Large number of newly g y established faculties May 11, 2011 • Universities vs Institutes vs. 9
  • 10. Technology • Product-oriented, mainly for the local market • Industrial Software • Outsourcing and foreign RDCs are nascent • Limited range of technologies May 11, 2011 • Service-oriented, mainly as outsourcing g • Wide range of technologies and methodologies • Leading edge 10
  • 11. Employment Standards • Willing to work hard for money y • Driven by challenges and p professionalism • Overtime as standard • Overtime at peaks p • High turnover, low loyalty g , y y • High commitment, loyalty g , y y • Migration after the work May 11, 2011 and accountability 11
  • 12. “Soft” Issues • Young professionals, eager to work hard, g looking for exposure to the West • Mature professionals, eager to cope with challenges, p g striving for “employability” • Chinglish • No language barrier • Mentality gap • European mentality? May 11, 2011 12
  • 13. What’s wrong with this iPhone? http://kingleader001.en.made-in-china.com/product/ZqyJcXxVrMhz/China-3-5-Touch-Hiphone-4GS-I9-4G-.html May 11, 2011 13
  • 14. Not just electronics… BORDEAUX? BRODEAUX! May 11, 2011 14
  • 15. IP protection • Weakly protected by the • Protected by the law law • Part of the international • “Fake” culture outsourcing p g professionalism • Selective actions by BSA y May 11, 2011 15
  • 16. Costs • Entry-Level ~12K • Entry-Level ~40K • Mid-Level ~24K • Mid-Level ~48K • Senior ~40K – almost not • Senior ~56K available in the market! Annual salary in US Dollars May 11, 2011 16
  • 17. Summary – Comparative Advantages • Big fast-growing market • Hard work as standard • Domain knowledge in • various industries (Still) Low Cost May 11, 2011 • Leading-edge • • • Technologies g Low turnover IP Protection Low barriers • Accessibility • Mentality • Language 17
  • 18. Thank You! Th k Y !

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