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Enclave, a Cinderella Story
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Offshore Development Centers
Cinderella
Story
In but one short year, enclave became the
Fastest growing,
Lowest Cost ,
& Lowest Turnover
IT Outsourcing provider in Vietnam.
Can’t seem to find a good fit?
Looking for greener pastures?
enclave
Offshore Development Centers
2. enclave
Offshore Development Centers
read_me
This presentation was written in 2008
It’s still one of the most widely viewed, and most shared
We’ve already passed our 5th anniversary, and understandably
there have been some changes. There’s a new operations center,
address, web domain, and the rates have changed @10%.
We’ve had to correct some misinformation, but also strived to keep
the presentation just as it was first viewed in 2008.
Enclave.vn
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About us Offshore Development Centers
Offshore Development Centers (ODC) for
Information Technology Outsourcing (ITO), with
Value, Stability, & Efficiency
A mantra-not a motto.
Rapid Ramping & Scalability
10 to100+ SW Engineers, now.
Secure Dedicated Facilities
A room, a floor or more.
High Security & IP Protection
Client’s are deadly serious about this. So are we.
International Standards & Management
Nothing else will do.
“Keen as Mustard”
As an Australian client puts it.
“…to clients-they’re a godsend, to detractors, they’re
annoying upstarts. Still, they’re the fastest growing,
lowest cost, & lowest turnover ITO in Vietnam today.”
San Jose Mercury News-May 2008
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vision Offshore Development Centers
A new venture, by some Seasoned & Trusted
Hands in Global IT from the USA & UK
●Belief in Vietnam as an idyllic venue for
offshore software development centers.
●Driven by client & market need for Low Cost,
High Stability, Security, & reliability.
●Determined to deliver value, stability, and
efficiency to our global ODC clients “I was witness to a long procession of great
companies who had come to Vietnam looking for
an answer. They were looking for relief from rising
● Committed to high standards, providing costs and instability in India, China and elsewhere.
secure, reliable, quality offshore development Many left disappointed, unable to find a viable
partner. Vietnam was the answer, but no one was
capabilities; and leading edge HR programs. offering a tenable solution.
This was the genesis of enclave. A stable, high
value ODC solution, & development of a dedicated
“… low-cost & efficient yes-but we’re no IT professional corps of young engineers.
sweatshop. Enclave is one of Vietnam’s best
To accomplish this end, we left Saigon for DaNang
employers, and best places to work, period.” in 2007. The results have been no less than a
Cinderella story.”
Enclave Founder & Chairman Stephen Cook
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●belief Offshore Development Centers
Vietnam is still an idyllic venue for ODC’s:
Demographics: A youthful populace 60% under 30
years of age. Educated, ambitious & eager.
Character. Earnest, & hard working. Desire to learn
improve, and do-well. Reverence of family, education, and
elders. Hope springs eternal.
Renaissance: Vietnam has been undergoing not only a
boom, but a renaissance that goes far beyond economics &
WTO. Vietnam is blooming.
Peace of Mind: Excellent public safety, government
support, open & inviting to the world, void of public discord,
international tensions, or strife.
“The ingredients are all here, but before Enclave
no one had been serving up what ODC clients
were hungry for”
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●challenge Offshore Development Centers
Vietnam's ITO landscape:
Saigon may be ground zero for Vietnam’s rapidly growing
(40%) IT industry, but it’s also home to rapidly escalating
costs, and alarming turnover. Hanoi’s not much better.
Of some 1200+ IT firms, fewer than 6 have 200 or more
engineers or valid CMMI credentials. Even longstanding
firms are having difficulty keeping their own seats filled.
More so with the arrival of the multinational ITO firms from
India & elsewhere.
The landscape is rapidly changing. Recent acquisitions &
strategic investment of some Vietnam ITO’s has been
raising eyebrows.
The ‘countryside’ may not be popular with ITO executives,
Wheeler dealers, movers and shakers.
but its been a hit with our ODC clients. Relative isolation
means more stability, lower costs, and greater security. Vietnam has rapidly emerged from a generation of post-
war isolation. Its success has been largely a matter of
More than 80% of Vietnam’s populace resides outside luck- being in the right place at the right time.
Saigon/Hanoi. Vietnam has a fresh new image and rising appeal
abroad; but success has been bittersweet for Vietnam’s
What’s been a bane to VN ITO’s is in fact a blessing at ITO industry.
Enclave. IT graduates are difficult to entice to Saigon-& Photo: National Geographic Magazine
even harder to retain, but Enclave brings jobs home-which
is where many prefer to be.
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●value Offshore Development Centers
Low Cost/High ROI
How is that possible? Rates: 4th Qtr 2008 $US/Month
Cost effective venues. Scale SW1 SW2 SW3 PM
Team
Avg
Saigon may be ground zero for IT in Vietnam, but its also
150
home to escalating costs, and rampant turnover. Many 100
say Hanoi’s even worse.
ODC Only, offshore delivery.
75
50
SEE UPDATE
25
Project based firms must constantly re-package and re-
sell capacity. It’s inherently inefficient & costly. ODC’s All Inclusive: Personnel, Facilities & Standard HW/SW
are long term, high utilization, engineering platforms. It’s
Roles Not Titles at Enclave
a ready & reliable engineering office abroad-an ODC is •SW-1: Software Engineer 1 (SW engineer)
yours and yours alone. •SW-2: SW Engineer 2 (Senior Engineer)
•SW-3: SW Engineer 3 (Team Lead)
Low Overhead. •PM Project/Group Manager
•Team Average (15/6/3/1 proportion)
No overseas offices or staff. No sales & marketing
department, no jet-set executives, no lavish t&e. We Basic Terms
•1-3 Year Term
invest where it counts most: capacity & capabilities. •Annual CPI Adjustment w/ Cap (9%)
•Terms: Monthly in Advance (MIA), or
Net 15 with Deposit
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●stability Offshore Development Centers
Isolate ‘Safe Haven’ venues
High Security
Stable Regional Markets
Strong Community Relations
Exceptional Institutional Relations
Low turnover is the key.
Enclave’s the lowest- under 2%
Why? DaNang Software Engineering Center 2008: View inside a
client ODC. (Courtesy of the San Jose Mercury News)
High Job Satisfaction,
Progressive Human Relations Program
Excellent Working Environment Hard to Believe
Esprit & Opportunity Turnover under 2% is incredible for
Vietnam, but more fascinating yet...
the leading cause of attrition is
‘marriage & romance’.
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●efficiency Offshore Development Centers
Seasoned ODC client’s will tell you.
Vietnam has an efficiency gap.
But Enclave is closing it.
Efficiency can be trained & instilled.
We begin with Bootcamp
•A rude Awakening;
•12 arduous weeks,
•Breaking barriers;
A Client ODC in DaNang Vietnam: Collaboration & teamwork are the
•Forging diligence & teamwork; cornerstone to efficiency gain in Vietnam.
•Instilling professionalism, & responsibility;
•Building esprit & mission mindedness.
The Engineering Team:
A sum greater than its parts
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●facilities Offshore Development Centers
Modern Production Facilities
City Center Locales Layout:
Reliable Infrastructure DaNang Software Engineering Center #1
Single Occupancy Modern Office Buildings
Secure/Contiguous Production Space
High Security-Electronic Access Controls
Professional Working Environment
24/7 access, duty officer, & security
Team Organization/Structure
Enclave: (Venue)
Multiple facilities Facility ≈ 250
in multiple clusters
Cluster 1 2 3 4 5 Average Team Cost<$1200
The cluster occupies one dedicated & secured area A cluster is 2 or
(floor) of an Enclave Unit, with client’s visiting team. more Teams
Team 1 [cluster 1] Team 2 [cluster 1]
SW1 SW2 SW3 PM SW1 SW2 SW3 PM
Adjunct Resource & Support:
Technical, Security, Training, Maintenance, Communications
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●community Offshore Development Centers
Institutional Partnership Accords
More than 90% of central Vietnam's engineering
students graduate from IPA universities.
SW Engineering Bootcamp is now recognized for University
credit towards graduation. Final Semester engineering students can
graduate & begin work months early.
Masters Degree in Computer Science: A first in Vietnam. Vietnam
National Polytechnic University DaNang (VNPU). One of the three
vaunted National Polytechnic Universities (Saigon, Hanoi, &
DaNang) is beginning a Master’s Degree program at Enclave-for
Enclave engineers.
New: Carnegie Mellon & Duy Tan University program in
Computer Science. Enclave sponsorship/participation.
Direct Assistance: Scholarship Programs, & Student Programs “it’s our policy to support & work with
e.g. VNPU Robotics Team Vietnam’s leading institutions, not to open
Career Center at DTU: Placement & Career planning one of our own”.
New 2nd Degree Program: Qualified grads (math, science…) are Stephen Cook, Chairman
returning for a 2nd degree in Computer Science.
Language Skills Programs: Teaching teachers, English MEMBERS:
Vietnam Polytechnic University Bridging the future
terminology initiative for IPA Universities. A little goes a long way.
enclave.ipa
Duy Tan University-Hue University- DaNang
Education University –University of Foreign
Languages DaNang
Institutional Partnership
Accords
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●capability Offshore Development Centers
Did You Know?
Enclave has the highest proportion of women
engineers in Vietnam IT (nearly 40%).
The industry norm is 10-15%.
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●harmony Offshore Development Centers
A sum greater than its parts.
Put it all together:
•A veritable Oasis
•Dedicated & Loyal Workforce
•Professionalism & Dedication
•Community & institutional support
•IPA & Institutional Involvement
•High security and IP Protection
Vietnam’s idyllic ODC setting, without Bootcamp #1 DaNang August 2007
the chaos
We make IT work.
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●photo pages Offshore Development Centers
Scenes from Enclave’s DaNang Software
Engineering Center
Enclave’s DaNang Center has 12 ODC Labs,
conference rooms, data center, assembly
hall, and more.
Enclave facilities are secured, city center,
sole-occupancy modern office buildings for
200+ engineers.
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Offshore Development Centers
Visitor Entrance, Danang Software Engineering Center #1
Visit of the US Ambassador to Vietnam, September 2008,
with CEO Hung Le, Chairman Steve Cook, and engineers.
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●more info Offshore Development Centers
Status & Availability: The
Enclave is pleased to current monthly status report and
provide the following availability for Enclaves. Includes
the current quarterly rates for
information to clients &
open venues.
their referrals on request
to: ODC@enclaveIT.com
HR Matters! ‘Disillusioned,
disaffected engineers don’t work
for us, so how could they work for
Engineering Success: Our current brochure. you” .
The Allure of Vietnam Background on Vietnam’s HR at Enclave: An overview
of recruitment, development,
emergence, and renaissance. (PDF) compensation & benefits, and
Vietnam’s IT Landscape: A current view of Vietnam’s IT culture of Enclave.
outsourcing landscape. (PPT)
Bootcamp- Rude
Why Vietnam? Why Enclave? Why ODC clients pick Awakening: The how’s and
Vietnam, Enclave and DaNang. A bird’s eye view of the ITO whys of Enclave’s Bootcamp.
landscape. (PDF)
Working with Enclave: Information for prospective clients. Guide for Candidates:
Our current recruitment brochure &
The ODC roadmap & service level standards, and Staging Contract. guide. (Print)
(PDF)
IPA Quarterly: Activities & News
Security & Risk Management: An overview of Enclaves’ from members of Enclave Institutional
system of risk assessment, prevention, interdiction, mitigation, and Partnership Accords.
recovery.
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●Thank you Offshore Development Centers
www. enclave.vn
F. Stephenson Cook, Sr. (USA)
HCMC, Vietnam
Chairman of the Board of Directors
Please contact us Mobile (+84) 90 893-4440
fscooksr@enclave.vn
for more information GoogleTalk: fscooksr
Hung Hoang Le (USA)
We thank you for your DaNang, Vietnam
Chief Executive Officer
interest in Enclave. Mobile (+84) 90 302 3099
ceo@enclave.vn
Skype:enclaveIT.ceo
Rick Yvanovich (UK)
TRG International
5th Floor - Central Plaza
17 Le Duan Boulevard
District 1, HCMC Vietnam
Enclave Vietnam rick@trginternational.com
Da Nang Software Engineering Center Tel: (+84) 8 823 6900
453-455 Hoang Dieu DaNang, VN Fax: (+84) 8 826 6899
Tel +84 (511) 625 3000 Fax: +84 (511) 625 3222
pao@enclave.vn www.enclave.vn TRG International
Global IT- 13 years in Vietnam!
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Straight Talk
Offshore Development Centers
+84 90 302 3099
Skype: enclaveIT.ceo
CEO Hung Le,
Danang Vietnam GMT-7
BS University of California Davis
Computer Science & Mathematics
MS Cal Poly San Luis Obispo
Computer Science
National Science Foundation
Fellowship-,Korea
General Electric Bentley NV
United Defense-Mt. View, CA
Varian-Palo Alto
Ericsson-Menlo Park
Global Cybersoft, Vietnam
Editor's Notes
Update notes FEB2013: Please see the foreword, next page. We are reportedly still the lowest cost, and lowest turnover. Growth? Check back later.
Enclave was the first global ITO to base in DaNang. Our first years drew much curiosity, and barbs from Vietnam’s IT landscape. Five years later, DaNang’s becoming praised and prized as an outsourcing venue. Even staunch critics have now moved to open branch engineering offices here.
The Global Financial Crisis has had an impact on Vietnam’s economy. It remains growing at About 5% annually.
We have omitted these old rates. Rates have increased about 12% over the past 5 years. Current man-month average @$1650.
There is newer, much larger, and more modern engineering centre. Labs/rooms accommodate up to 50 engineers.
Corrected: 25+ in mere days Language: We’re now English only. Women engineers are closed to 35% now.
Even more so. DaNang’s now a top tourism destination in South East Asia, and in the throes of ambitious develoment. A new airport in opened December 2011, three famed gold courses, and a number of famed resorts.
There’s a new centre: larger, more modern, and with greater lab/room capacities
The US Ambassador has since retired.
Status & Avaliability and reports are no longer published
We moved from .com to the .vn domain when introduced in 2011. Mr. Cook is no fan of Skype, and uses Google Talk, but will conference via Skype on request.
Mr Le is reported more handsome and charming than ever.