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KMD POLAND…
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Market opportunities in Poland and Ukraine
February 8th 2017
Agenda:
Who am Jens Brinksten?
KMD Poland Sp. z o.o.
Why Poland - Warsaw?
Culture / local challenges…
KMD Poland’s journey…
Poland, Ukraine and Denmark, my personal evaluation…
KMD Poland’s journey in pictures…
Q/A
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WHO AM JENS BRINKSTEN?
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Hold an E-MBA and HD-R from CBS.
CEO for KMD Poland Sp. z o.o. since December 2014
Earlier I have been Head (SVP) of SGS in SimCorp A/S and CEO for SimCorp Ukraine LLC, CEO for ScriptServer AB and CEO for Refugees United among others.
I have also been MD/CEO for Ernst & Young in Uzbekistan, Director for KPMG’s Consultancy & Financial Advisory Service in Central Asia and CEO for EBRD’s Post-privatization Fund in Uzbekistan.
During the last 27 years I have worked in more than 20 countries and started companies/organizations up in 16 countries, mainly in East and Central Europa, Central Asia and Africa.
I have worked primarily with Globalization, Internationalization and Privatization since 1989.
I have taught in several Universities around the Globe and advised a number of larger international companies in Sourcing and Globalization.
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KMD POLAND SP. Z O.O.
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KMD Poland Sp. z o.o. is a 100% own subsidiary of KMD A/S in Denmark
KMD Poland’s history is short (established December 2014) – and the company develops every day
We are currently around +275 people (+50 in the pipeline) on our location in Warsaw and our people work on +40 projects in close cooperation with Danish teams from KMD A/S, (we have currently 376 work spaces in the office and will extend it to 458 work spaces during 2017)
Every month KMD Poland welcomes new talented consultants, and it is expected, that KMD Poland will have +400 people operating by the end of 2017
KMD Poland works on a wide range of projects and technologies to both public and private sector in Denmark, so KMD Poland has become a key element in the future development of KMD Group
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KMW ORGANISATION PRIMO 2017
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KMW CEO
Software Center
R&D AMS TSA
Support Service Center
KMD Finance KMD Operation KMD QIS
Edlund/BanqSoft
Edlund WAW
BanqSoft WAW
KMW Finance KMW HR
KMW Adm.Nearshore
Management Team
OperationalDepartments
KMW Management
KMW Middle Managers
TL/Team members/ employees
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WHY POLAND?
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Why is Poland interesting in the long run:
Population: 38,5 m in Poland (around 20,0 m live outside Poland) and Poland is the closest neighbor south east of Denmark, member of EU and under the EU legislation e.g. in regard to Personal Data
Capital: Warsaw with 1,7 m residents (“Greater Warsaw” around 4 m)
Around 70.000 IT students on tertiary educations (OECD) one of the most prestigious educations today in Poland
Between 14. to 15.000 IT graduates per year (OECD), 10 – 15% women
17% of the population over 13 years have a tertiary education (national statistics), 90% of Poland’s youths complete at least 2nd education and 50% of them an academic degree
No. 1 among OECD and G20 countries in % of today’s young population expected to complete a university degree during their lifetime (OECD)
For 24 consecutive years a constant growth in GDP and is the eighth-largest economy in European Union today (OECD), and a very stabile economy…
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POLAND TODAY…
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Why Warsaw:
There are some basic advantages with being in Warsaw, even though Warsaw is factually one of the most expensive locations to be based in, in Poland:
The best and largest market for highly educated people (universities and technical high education institutions), per definition the best supply channel for graduates, because of the highest number of IT, Financial and Insurance related educations and companies
Warsaw is also a magnet for IT people inside Poland
Warsaw has easy access possibilities, with several daily flights from Denmark, which gives staff from both Denmark and Poland possibilities to visit the opposite location on a day-to-day basis and still have up to 8 to 9 hours in the present office
A reliable infrastructure and facilities if needed, etc.
But also it is one of the most competitive markets for consultants right now, so there is a constant fight for good and highly qualified consultants…
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FOCUS ON CULTURE!
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Poland versus Denmark culture…
The Polish people love football and handball as well as Danes…
Both Polish and Danes like beer, pork and good beef…
Both Denmark and Poland are agricultural countries…
Denmark and Poland are neighbor countries…
Both Danish and Polish are two difficult languages to learn…
There are more bicycles in Denmark than in Poland… probably the biggest difference between the two countries beside the language…
In the daily work the differences are quite small between our two countries, and you will meet as minimum the same amount or more differences locally between different regions in each of our two countries…
I normally don’t like to talk about differences, but instead talk about similarities, because when one mentions the word “differences”, then we automatically start looking for differences…
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THE CHALLENGES WE/YOU WILL MEET…
Communication: remember to always include your colleagues in different locations in daily communication
Keep each other in the loop
Give each other context for the daily tasks
KMD Poland works according to Polish holiday calendar, which does not always overlap with the Danish
Secure tasks for your colleagues in KMD Poland if there is a bank holiday in Denmark
Consider both Danish and Polish holiday calendars when setting deadlines or planning visits
Use and promote using English
In documentation
In written communication
During meetings
Our Journey
KMW organisation Q1, 2017.
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WHERE DID WE GET PRACTICAL HELP…
Legal: We used a larger local legal firm to register the local entity
Bank: Here we used the local Danske Bank Warsaw branch, because we also work with them in Denmark
Finding premises: Here we used DTZ, now Cushman & Wakefield (both for finding premises, but also their Project Department for running our establishment/building project)
Furnishing and decor of our office: Here we had a tender process, where we had 5 different companies bidding, all local placed firms and here Kinnarps was chosen, both as suppliers and architects…
Technical installation: Was all done via local Polish firms
General supplies for our operation/office: All via local Polish firms
Staffing and hiring during the establishment: Two different consulting firms (7N and ProData) and different HH/HR firms: Grafton, CPL and Hays…
Market awareness: Mainly the Danish Embassy and different local market researches…
In general: Everything can be done locally and the quality is really high…
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KMD’S JOURNEY IN POLAND
Pre-establishment phase
Establishment phase
Working streams
Legal and
admini-strative
Property
Facility Manage-
ment
Technical equip-ment setup
Security
HR staff consultant
Ad hoc
Other challenges
Tim
elin
e
Conclusions / next step (future)…
Poland, Ukraine and Denmark
My personal evaluation…
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HOW DO I SEE THE COUNTRIES WE DISCUSS HERE TODAY?
Before I go into my evaluations and comparisons, then I want to underline this is my personal evaluation
The evaluations are build on my three years in Ukraine, building SimCorp Ukraine up and visiting different IT companies in L'viv and Kiev during the last year, finally KMD Poland still have around 20 Ukraine developers/ testers working in Kiev, because of a merger KMD made some years back
The above, together with my current experience in building KMD Polandup during the last two and a half year in Warsaw, and visiting a number of Polish IT companies around Poland, have given me a strong basic knowledge and background for making a comparison, between the two countries, including the maturity of the markets and the IT industries in the countries
Finally I compare Poland and Ukraine with the Danish IT sector, so you can get a feeling of, how I see the three markets up against each other…
But as already underlined, then this is my personal view and evaluation, why other people can have other perceptions in regard to the single points/areas of my evaluations…
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THE SEVEN WORKING STREAMS FOR ESTABLISHMENT…
(1 = low/bad , 5 = high/good)
Startup challenges Poland Ukraine Denmark
Legal and administrative (red tape) 4 2 5
Property 5 2 4
Facility Management 5 3 5
Technical equipment/ setup/stability 5 3 4
Security (technical and physical) 4 3 5
HR/staff/consultants 4 3 4
Ad hoc 5 2 4
Here I focus on the work-streams, which I normally use as basis for an establishment of a company, when I should do this in a new environment/country…
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OTHER PARAMETERS TO TAKE INTO ACCOUNT…
(1 = low/bad , 5 = high/good)
General conditions Poland Ukraine Denmark
Technical educations/ Universities/IT clusters 3 3 4
Facilities/office space 5 3 4
Security 5 4 5
Bribery/red tape 5 2 5
Political stability 4 2 5
Economy/costs 3 2 1
Salaries attractants 4 3 1
Brain drains (1 = high drains/5 = low drains) 4 3 5
IT market (access to local talent) 3 4 2
Retention (loyalty to an employer) 3 4 4
Work culture/ethics/pride in deliveries (wish to deliver in time and high quality) 5 4 3
Openness/cultural adeptness 4 4 2
Sourcing experience 4 4 2
Living standard 4 3 5
English proficiency 4 3 4
Access to Danish speaking staff 3 1 5
IT/Programming Skills and proficiency 4 3 4
Infrastructure 5 2 5
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INTERNATIONAL RANKINGS…
HackerRank is a platform that ranks engineers based on their coding skills and helps companies discover talent faster…
Poland = no. 3
Ukraine = no. 11
India = no. 31
Denmark = no. 34
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MY PERSONAL CONCLUSION…
If I look at my personal evaluation, the results are as follows (score):
Poland: 104 pointsUkraine: 72 pointsDenmark: 97 points
The differences are focused on some few areas:
Red tape, quality of facilities/premises and especially access to modern and attractive offices, including secure environments to affordable money…
Easy access to highly professional support companies, who can support you during establishment (see my slide regarding practical help in Poland)…
General stability in regard to costs and economic environments (e.g. payments in foreign currencies), currency risks, general risk management…
General business maturity, educational levels and academic level of educational institutions and universities, etc. including work culture, language skills, etc.…
General security, data security and infrastructure…
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CONCLUSION AND RECOMMENDATIONS…
If I look at Poland and Ukraine in regard to general IT development, then I would divide my recommendations as following:
Poland: Development of larger IT systems both to public sector and bigger private sector companies. Polish developers has high general experience in working across boarders and in larger development projects, e.g. Financial Industry companies and other companies, who work with personal data (focus on EU legislation) is very active in Poland.
Today I will recommend Poland to larger projects and captive setups.
Ukraine: Have great specialists and knowledge in e.g. gaming sector, development of mobile apps, systems inside the publishing sector, smaller administrative systems developed by smaller and midsize companies on its way up, intranet system development, web applications in general, special components software, etc.
Earlier we saw larger European companies establish themselves in Ukraine, but many of them have now moved development inside EU’s boarders, mainly because of the tougher legislation of how to handle Personal Data, etc.
But I will still recommend Ukraine to more clean outsourcing and project development incl. managed services (fixed price projects and T/M)
Our Journey in pictures
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THE JOURNEY…November and December 2014
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THE JOURNEY…January to April 2015
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Preparation of the temporary office space in Mokotov, also called “Mordor” (from “The Lord of the Rings”)
Moved into the temporary office March 2nd 2015 with two “guinea pigs”…
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THE JOURNEY…May 2015 to July 2015
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A totally raw new office
Investigated 8 potential office locations, but went for the one with the best location for the future KMD employees
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THE JOURNEY…September to October 2015
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Why should an office be so boring?
The new office should reflect a modern, innovative and functional IT workplace, for attracting the right employees for the future!
The finish needs to be perfect!
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A TIME TRAVEL IN KMD POLAND…October 2015
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Personality…
Functionality…
Acoustics…
Work environment…
Fun…
Employer branding…
Location…
Respect…
All key-words in the lay-out of KMW...
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THE JOURNEY…
27Grand opening November 2nd, 2015
KMD “Must Win Battle 2015” delivered!
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KMD POLANDToday…
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Office with soul, personality, style and inspiring work environment, which gives high productivity and will to deliver…
TVN – DK, the happiest nation
in the world
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KMD POLANDWe also enjoy time together…
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KMD POLANDCSR and other initiatives in KMW
30Christmas gifts to homes for orphans
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KMD POLANDHarvard Business Review April 2016
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Office of the 21st century…
KMD Poland is used as an example of how an office of the 21st century can be built by both HB Reavis,
Kinnarps and ICAN Institute in Harvard
Business Review April 2016.
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KMD POLAND…
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One of our mottos in KMD Poland
30th US President 1923 - 1929
Nothing in this world can take the place of persistence. Talent will not; nothing is more
common than unsuccessful people with talent.
Genius will not; unrewarded genius is almost a proverb.
Education will not; the world is full of educated failures.
Persistence and determinationalone are omnipotent…
Calvin Coolidge(30th US President 1923 – 1929)
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Q&A
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VISIT US ON THE INTERNET:
KMDPOLAND.PL PLUS.GOOGLE.COM/+KMDPOLANDPL/VIDEOS
FACEBOOK.COM/KMDPOLAND INSTAGRAM.COM/KMDPL
GOLDENLINE.PL/FIRMA/KMD-POLAND/ TWITTER.COM/KMDPOLAND
YOUTUBE.COM/C/KMDPOLANDPL LINKEDIN.COM/COMPANY/10072482