Collaborative outsourcing aids competitive advantage

Interview with: World Finance interviews Danijela Stojadinovic, CEO, Gowi

Serbian IT company Gowi believes that the key to success lies in managing a relationship rather than simply governing a contract

In today’s competitive and challenging business environment, it is difficult to stand out.

Sustaining the profitable growth has been more difficult than ever, and it is well known that the key to success is to innovate, to offer extraordinary experience to customers and to assure future growth. However, it is up to each company to find their way through, to make the right decisions at the right time, to explore strange new worlds and go where no one else has gone before. Business requires constant planning, adoption of new ideas, and leadership to allow for continued success year-on-year, regardless of the pitfalls faced.

Employing the best staff, reliable and trustworthy, is one of the key factors in long term success.

It is becoming very important to maximise the utilisation of existing assets in order to overcome some of the issues companies are facing in a challenging economy, and to ensure the business growth. So, companies are either looking at internal sourcing or, quite often, they are trying to build the best possible outsourcing business models.

Regardless of the type of business or the type of service that might be outsourced, one of the biggest challenges for companies is to choose the right partner. It is not just about cutting costs, it is more often about entrusting the business process to someone outside the organisation.

It is not about technology, but people
Gowi is facing the software development outsourcing challenges together with its clients by focusing energy on understanding customers’ business needs as well as their strategic goals in order to support them: to put innovation to work, grow the business and gain a competitive advantage.

Through collaborative outsourcing and a  process that is fundamentally client driven, Gowi supports customer growth and innovation by providing business flexibility, enabling access to talent, helping customers to drive the change, taking initiative and proactively working together, being honest and transparent, building a strong relationship based on trust, shared values and reliability, and of course delivering value.

After over 12 years of experience in the software development offshore outsourcing sector, GOWI has been recognised as a reliable partner that is able to help clients select the best-suited approach to their challenge.

According to Danijela Stojadinovic, CEO at Gowi, as a result of this kind of approach Gowi has developed long–term trust based relationships with a number of clients and partners from the UK, Germany, Holland and Serbia. “Gowi demonstrates a commitment to serving its customers. We tend to build the partnering model with focus on collaboration, flexibility and results. Our collaborative outsourcing model implies: shared values and cultural fit along with wanting to ensure that both parties are successful,” she says.

Gowi is a dynamic, fast-growing software company that was established in 2000 and over the period since has successfully gone through a number of transformation cycles. Today, Gowi’s team is based in Belgrade and Pancevo, Serbia. In 2011, Gowi invested in Urdgroup Ltd and became one of the owners of the business based in the UK.

In 2011, Gowi was named Microsoft Country Partner of the Year for Serbia for demonstrating excellence in innovation and implementation of exceptional Microsoft-based solutions. In 2009, the Serbia Investment and Export Promotion Agency (SIEPA) recognised GOWI as Exporter of the Year in its SME category. This award was received as a result of Gowi’s extraordinary exporting results achieved primarily on the UK market.

Pragmatic approach to challenges
Significant numbers of outsourcing contracts tend to fail in the implementation phase mostly because of lack of strategic fit between the client and the outsourcing service provider. The key to success lies in managing the relationship rather than simply governing the contract.

Gowi understands the risks companies are taking by deciding to outsource software development and through its pragmatic approach the members of Gowi’s team take full responsibility and accountability for meeting business expectations.

Gowi has set up a communication framework supporting a range of communication strategies and skills which promotes collaboration with the client, sharing information, giving and receiving feedback, learning from outcomes. Gowi encourages people to actively engage themselves in the problem and to come up with suggestions for improvements, bearing in mind the purpose of the project.

GOWI’s customer-focused approach
Gowi specialises in Custom Application Development and ensures that applied approach conveys how solutions can address customer’s complex challenges, maximise efficiency and reduce costs. The custom solutions are tailored to meet both clients’ professional and practical business needs and to serve their intended purpose, while obviously ensuring return on investment.

Quality business analysis, planning and design is the key to successful custom application development as it can give a developed solution unique and valuable features, but also make sure that the return is worth the cost.

According to Mrs Stojadinovic, front liners who communicate directly with customers are knowledgeable, experienced and empowered to solve problems. They are in a unique position to observe, understand and communicate the needs of customers. “We are open minded listeners who understand the true meaning and feeling that lies beneath the customers’ words. The ability to put ourselves in clients’ shoes and walk a mile allows us to connect with our customers and create a sense of teamwork between us. Our understanding of the way customers uses our products or services influences our choices about our strategy,” she says.

Keeping promises and working together
By putting the focus on people rather than  technology, Gowi has developed the values and communication framework that ensures openness, honesty, empowerment, trust, and teamwork. Its approach ensures the focus is on having effective discussions rather than just trying to ‘get it right.’

In order to overcome some offshore outsourcing challenges, Gowi has developed a collaborative outsourcing model that ensures that teams are working together cohesively, focused on achieving the same objectives and working from the same context. Through collaborative outsourcing, Gowi ensures that the client’s knowledge is enhanced, not lost, as a result of outsourcing.

Gowi’s project management and software development life cycle methodology is stringent to ensure that all the necessary aspects of software development are addressed and yet remain flexible enough to be customised to fit the needs and size warranted by each specific project and client.

The professional teams that are allocated to each project provide a personalised approach for each client. Gowi’s customers benefit from its unique approach to software development, offshore outsourcing and from its diverse pool of talented and innovative people who understand how to fit the technology into specific business needs.

According to Mrs Stojadinovic, Gowi is the team of people who are not just doing their jobs, but enjoying the work, not just another group of software engineers capable of designing and building software solutions simply wanting to sell their knowledge to customers. “We set up a company where people bring passion, enthusiasm, high energy and excitement into their work. We created an environment in which people are genuinely enthusiastic to give their ideas, go the extra mile and move things forward,” she says.

Putting innovation to work
Both public and private organisations are concerned about keeping pace with a fast-shifting environment. Every company wants to achieve profitable growth over the long-term and to outperform industry competitors. The long-term success of organisations is largely defined by their ability to grow and innovate more successfully than their competition.

Accelerating growth through innovation comes down, ultimately, to the performance of a company’s people. Optimising that performance, however, depends on a unique and diverse pool of talented contributors, internal and external. Through its collaborative outsourcing model, Gowi provides effective communication, talent management, and organisational effectiveness to help its clients implement the changes that need to be made to their IT landscape in order to start making things happen.

By understanding a customer’s business objectives, Gowi allocates the appropriate resources, with the right skills and competencies, understanding the strategic objectives and driving the required change, transforming the business and assuring future growth.

Gowi provides a range of IT outsourcing services and solutions to enable companies to develop challenging and innovative software products, as well as run their day-to-day operations. Over the years Gowi has specialised in designing and implementing the tailor-made software solutions for different vertical markets such as publishing, insurance, education, government, health, and so on.

Gowi’s mission is reflected in its name – which comes from Go With Ideas – as it encourages both employees and customers to put innovation to work. By building positive experiences over time, Gowi gains trust and builds long-term relationships.

According to Mrs Stojadinovic, the company’s business development plans is to grow strategically through expansion into new and existing markets. “The key drivers of the Gowi business growth are happy customers and happy employees,” she says.

Danijela Stojadinovic discusses Gowi’s offerings in more detail, here.

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The May – June 2013 Issue

Highest corporate tax
rates in Europe

European countries are scrambling to raise every last penny of funds through taxes. But some countries may have gone too far...

Belgium

Though all business taxes in Belgium can be paid online with little effort and preparation, the rates are still sky-high at 57.7 percent, including a staggering 50.8 percent total rate on profits only in social security contributions.

Belarus

In Belarus, a company spends up to 338 hours annually preparing for and paying ten different taxes and duties. The total tax rate has incredibly been lowered to 60.7 percent, from 117.5 percent in 2008.

France

A company in France pays seven different taxes and duties, the sum of which can amount to 65.7 percent of profits; though President François Hollande has announced a wave of business tax rate cuts coming up.

Estonia

A business in Estonia pays 67.3 percent of profits in tax, 37.2 percent exclusively in social security contributions. The country has gone against the grain in Europe by raising businesses taxes from 48.6 percent in 2008 to the current rates.

Italy

While corporate income tax (IRES) in Italy is limited to 38 percent of taxable profit, a company operating in Italy can expect to pay 14 other taxes and duties, including social security contributions, bringing their total payable tax to 68.7 percent of profits, according to the World Bank.

Norway

Norway taxes motor fuels twice, with a road use tax and a CO2 emissions tax. Combined with strikes in the energy sector that have curbed output, the price of gas at a local pump has soared to $10.12 per gallon.

Turkey

Though Turkey sits on the Suez Canal and neighbours many oil rich countries, the price of a gallon of average gas clocks in at $9.41 in Turkish pumps, because of a 60 percent share of taxes. 

Israel

Like Turkey, Israel is surrounded by oil-rich neighbours, but drills very little itself. Gas prices are controlled by the government, so about half of the $9.28 per gallon goes to taxes.

Hong Kong

There are few gas stations in Hong Kong, but the ones available charge up to 76 percent more per gallon than mainland China, where the government caps the cost of fuel. A gallon at the pumps will cost around $8.61 on the island.

Netherlands

Expensive labour costs make the Dutch petrol prices the dearest in Europe, at $8.26 per gallon; though the 57 percent tax add-ons don’t help.

The credit crisis

8 February 2007
HSBC warns of subprime mortgage losses

2 April 2007
New Century goes bus

14 September 2007
Wholesale markets have dried up

17 March 2008
Rescue of Bear Stearns

7 September 2008
Rescue of Fannie Mae

15 September 2008
Lehman Brothers file for bankruptcy

3 October 2008
US congress approves $700bn bailout

14 February 2009
$787bn stimulus approved by congress

 

The effects of the current financial crisis are global and irrefutable. With the collapse of Lehman Brothers, the domino effect of irresponsible public monetary policies, huge levels of unsustainable debt, and a deregulated financial sector, has escalated to the point where no corner of the globe has been left untouched.

1973 oil crisis

October 1973
Syria and Egypt launch an attack on Israel on Yom Kippur and set off a twenty day war;

1977
US President Carter creates Department of Energy, which develops the US strategic petroleum reserve

 

The Organisation of Petroleum Exporting Countries (OPEC) used their oil reserves as a weapon with the Arab Oil Embargo against those who supported Israel. By January 1974, world oil prices were four times higher than they were at the start of the crisis, especially in the US, and the shock led to a huge drop in the stock market with NYSE losing $97bn in just six weeks.  The embargo lasted five months, and the effects are still seen today.

German hyperinflation

1922-1923

Hyperinflation
1923 – 1924
Stabilisation

 

The trouble began when Germany missed a repatriation payment, worth about one third of the German deficit in this period. Inflation was already high but by 1923 it was raging. Prices doubled within hours, and by late 1923, it cost 200bn marks to buy a single loaf of bread. People burned money as it was cheaper than buying firewood. Germany eventually regained control of its economy when it introduced the Rentenmark into circulation in 1923, and then the Reichmark in 1924.

The Great Depression

1929-1933
The Great Crash
1934-1939
Recovery and Recession

 

After the decadence of the Roaring Twenties, the 1930s saw the biggest economic slump of all time. The stock market crashed on 29 October 1929, and optimism and decadent living tumbled along with the figures. The GDP fell from $103.6bn in 1929, to $66bn in 1934 and the subsequent years of recovery were the most dramatic in US history.

1907 bankers’ panic

1907
Otto Heinze and his brother Augustus Heinze bought shares of United Copper.

 

The stock market was already cautious over the tight money supply, but the US was thrown into a depression after the stock market fell nearly 50 percent from its peak in 1906. The Heinze brothers thought they could influence market shares but ended up bankrupting lenders that provided the financing to buy the stock. A chain reaction left nine institutions bankrupt. By February 1908, the panic was over and the government created the Federal Reserve system, to prevent banks from exercising too much control over the economy.