When Chris Chen founded VanceInfo Technologies in Beijing in 1995, the company had 25 employees and a low level of IT outsourcing project for the U.S. multinational. As of August 2008, through a combination of organic growth and acquisitions, VanceInfo employs more than 4,800 people have been numerous Fortune 100 clients, and use revenues exceeding $ 80 million in the previous 12 months. Although small in comparison with the more complex Indian competitors, VanceInfo is well positioned to capture the expected explosion in demand in China, based on offshore IT services. At the same time, the rapid growth strains the company's management personnel, systems and resources. The number was set for five to 20,000 in four or five years, "to keep pace with the aggressive revenue goals. Old special methods could not accommodate current and future needs. To be successful, the management was to introduce new financial, operational and internal control systems especially in the critical areas of human resources, where VanceInfo faced some of its most important tasks. These include the introduction of effective processes for rapid expansion, training, management and conservation of its work force. Moreover, in its desire to increase its workforce to 20,000 in For five years, to move to a higher margin businesses requires new knowledge, and knock out domestic and international competition, the management had to find a balance between the fast earnings through acquisitions and potentially slower growth through organic growth. Case helps students think about the difficulties in managing a rapidly growing company. Specifically, it asks students to analyze whether the current strategy VanceInfo's growing organically and through selective strategic acquisitions will enable it to achieve its goals. It also asks them to analyze human resource challenges and the efforts of the company to meet them. "Hide
by Hayagreeva Rao, Pamela Yatsko Source: Stanford Graduate School of Business 36 pages. Publication Date: January 23, 2009. Prod. #: HR34-PDF-ENG
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