The world’s largest manufacturer of intelligent electronic heat meters has a software division in Ukraine. With constant focus on growth through product development, Kamstrup A/S considers outsourcing to be a natural step on the way to lasting success.
Kamstrup A/S is a well-established Danish company that extends around the world, and in spring 2011 entered into collaboration with Conscensia. Kamstrup A/S closed its books in 2010 with profits of more than DKK 100 million before tax. That is not the only thing at Kamstrup that runs in high gear. Their collaboration was highly efficient and productive right from the start. Talking about the opening phase, the setup and the benefits so far of Conscensia’s outsourcing, Technology Manager at Kamstrup A/S, Henrik Mørck Mogensen, says: “Kamstrup A/S has started collaboration with Conscensia quite simply with the aim of scaling up manpower efficiently and with financial advantages.”
Conscensia’s carefully planned project began with what Henrik Mørck Mogensen described as a very simple and easily accessible contract setup. Kamstrup A/S clarified both internally and externally with Conscensia’s HR department which qualifications the company needed, and Conscensia set out to find the right applicants. Kamstrup A/S received a list of potential candidates, and agreed to a visit to Lviv, to meet them face to face. When the new employees had been selected, pay negotiations began, and Conscensia then made the final practical arrangements. Hnerik Mørck Mogensen adds: “We decided, in consultation with Conscensia’s HR department that we would go straight in and say firmly: from day one we are going to start on the task we have to carry out. We preferred that to letting the employees spend a lot of time running around to introduction meetings. But that is what I call impressive. Especially when we are dealing with a concept with as many shades of meaning as outsourcing.” Only a month and a half after Kamstrup A/S signed the contract with Conscensia, the new development team was up and running at full strength.
Right now, Kamstrup’s development team are part of a larger project involving twenty people. Their assignment is to develop a component for a completely new system. Henrik Mørck Mogensen describes the cooperation so far with the development centre like this: “They have made a positive contribution, because they have raised our business value by delivering a product as expected, and perhaps exceeding expectations.” In the western region of Ukraine, the culture, general attitude and approach, for instance to assignments, reminds Hnerik Mørck Mogensen very much of Danish attitudes . It was not only important for Kamstrup A/S that the team would fit in with the rest of the company, but conversely, that they could make independent decisions on the company’s behalf. According to Henrik Mørck Mogensen, the development team has just the right mindset to handle the responsible and knowledge-intensive work they are asked to do.
20 per cent of Kamstrup’s employees are occupied in product development. Starting a team of new employees in another country to extend this process seemed an obvious move in line with Kamstrup’s strategic growth. Henrik Mørck Mogensen explains that he can see many advantages in investing in outsourcing. Conscensia’s outsourcing provided qualified manpower on a cheaper market. For Kamstrup A/S the flexibility in particular, with the possibility of adjusting the development team to the exact requirements of the company, one of the greatest strengths of their collaboration.
In 2010, Kamsturp A/S increased their investments in production technology and automation to DKK 60 million, and the investments will rise to DKK 70-80 million in 2011, partly through an extension of their factory in Stilling by 4000 square metres. Henrik Mørck Mogensen says that he also reckons there will be more growth in the outsourcing branch of Kamstrup A/S in the future.