In a 2006 interview, Achievo chairman and CEO Robert Lee described outsourcing to China as a business decision that required managing intellectual-property exposure, building experienced teams, and communicating clearly with customers and acquired executives. His comments document one company leader’s views at the time; they do not establish Achievo’s current operations or verify the safeguards he described.
What Achievo looked like when Lee gave the interview
CIO published “Achievo CEO Lee Talks China Outsourcing: Q&A” on September 27, 2006. The telephone interview was conducted with IDG News Service and edited for publication. CIO described Achievo as a software outsourcing company based in San Ramon, California, with client-facing offices in North America, Germany, and Japan and development capability in six Chinese cities.
That footprint is a description of the company in 2006, not evidence of its present-day locations or services. The interview records Lee’s statements rather than independently verifying company claims.
How Lee framed intellectual-property risk
Lee said intellectual-property protection should be a serious concern, while acknowledging that safeguards cannot eliminate risk. In his words: “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 how to handle IP as part of managing that exposure.
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The Mercedes-Benz example
Lee cited 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 among multiple locations, including locations within China. This is Lee’s account of a project-specific arrangement; the interview does not audit or independently confirm it.
What Lee said about staffing in China
Lee acknowledged that Achievo needed more experienced project managers and designers in China. He said the company generally considered five years of experience enough to regard someone as experienced, and expressed the view that experience would accumulate as the market developed. Both the threshold and the outlook are Lee’s 2006 comments, not a current assessment of China’s labor market.
How he described acquisitions and integration
Building trust with acquired leaders
Lee said Achievo sought to treat the leaders of acquired companies as successful executives, communicate a shared goal, and draw on executives with Chinese cultural backgrounds and language familiarity. He presented these as elements of Achievo’s own approach to building trust, not as a general rule about Chinese business culture.
Giving the deal a clear purpose
For large software acquisitions, Lee stressed having a clear vision that could be communicated and winning the support of key team members. He summarized the leadership challenge this way: “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.”
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Talking to customers soon after closing
Lee said Achievo’s integration model included contacting customers right after a deal closed to explain it and address their concerns. As he put it: “Part of our integration model involves calling on our customers right after the deal and explaining to them what this is all about.”
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Questions the interview raises for a buyer
Lee’s answers are not a vendor ranking or a current security assessment. For a buyer evaluating an outsourcing arrangement, they suggest asking providers specific questions about:
- Which locations will hold or access source code and other sensitive data, and what project-specific controls govern them?
- How will the provider communicate IP-handling expectations to the people working on the project?
- What project-management and design experience will be assigned, and how will distributed teams coordinate?
- Who will communicate with customers during an acquisition or organizational transition, and when?
The interview does not establish how any provider would answer those questions today; the answers need to be assessed for the particular project and contract.
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