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In a September 27, 2006 interview, Achievo chairman and CEO Robert Lee described the company’s approach to outsourcing software development to China: manage intellectual-property exposure without claiming it can be eliminated, build trust with acquired leaders, and communicate clearly with customers and teams. His comments are a historical account of Achievo’s practices and views at that time—not evidence of the company’s present-day operations or an independent assessment of its safeguards.
What Achievo’s China outsourcing model looked like in 2006
CIO described Achievo as a software outsourcing company based in San Ramon, California, with client-facing offices in North America, Germany, and Japan and software-development capability in six Chinese cities. That description captures the company’s footprint when the interview was published; it should not be read as a current company profile.
How Lee framed intellectual-property risk
Lee called IP protection an important concern. His position was that controls could reduce exposure but could not remove the risk altogether: “IP protection is very important, it’s something that should be a concern. But while you can reduce your exposure to the risk of IP theft, you can never eliminate it.” He also pointed to communication and educating workers about proper handling of IP as parts of managing that exposure.
The Mercedes-Benz example
To illustrate a project-specific control, Lee described software Achievo had developed for Mercedes-Benz to determine manufacturing costs worldwide. He said the project’s procedure required its source code to remain in Germany, at Achievo’s German office, rather than at Mercedes-Benz. He also said work could be divided across multiple locations, including locations within China. These are Lee’s statements in the interview; the account does not independently audit the arrangement or establish that it would suit other projects.
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What Lee said about experienced staff
Lee acknowledged that Achievo needed more experienced project managers and designers in China. He said the company generally considered five years of experience a marker of an experienced person and expected experience to build as the market developed. This describes Lee’s assessment in 2006, not the present state of China’s technology workforce.
How Lee described acquisitions and integration
Lee said Achievo sought to treat acquired leaders as successful executives, communicate a shared goal, and draw on executives with Chinese cultural backgrounds and language familiarity to build trust. He presented these as elements of Achievo’s approach, not as rules about Chinese business culture.
For large software acquisitions, Lee emphasized a clear vision that key team members could understand and support: “Having a very clear vision that can be communicated and winning the support of your key team members is what’s going to make it happen.” He also described contacting customers soon after a deal closed to explain it and address their concerns: “Part of our integration model involves calling on our customers right after the deal and explaining to them what this is all about.”
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Questions the interview suggests buyers should ask
Lee’s account is not a vendor ranking or a security audit. For a buyer assessing an outsourcing arrangement today, the issues raised by the interview point to practical questions to settle for the specific project:
- Where will source code and other sensitive materials be stored and accessed, and what controls govern those locations?
- How will the provider communicate IP-handling expectations to the people working on the project?
- What project-management and design experience will the assigned team bring, and how will work be coordinated across locations?
- Who will communicate major changes to customers, and how will that communication fit into acquisition or delivery transitions?
The answers need to be established for the provider, contract, team, and project under consideration; the 2006 interview does not supply current answers.
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