Friday, October 20, 2006

Huawei to spend more on training local workers

Andi Haswidi, The Jakarta Post, Jakarta

One of the world's leading telecom networking and manufacturing companies, Huawei Technologies, has pledged to boost investment in human resource development in order to support the company's expanding business in Indonesia.

"We already have vital operations here. Therefore we require more and more local people to support the operations," Huawei corporate communication director Fu Jun told The Jakarta Post on Thursday.

Currently, Huawei serves over 300 telecommunication operators including 28 of the world's top 50 operators with its products and technical solutions adopted in more than 100 countries by more than one billion users globally. The company's global sales in 2005 reached US$8.2 billion and is projected to increase to US$11 million this year.

Headquartered in Shenzhen, China, Huawei has over 44,000 employees, more than 400 of whom are Indonesian, who mostly work to support the operation of the company's partners in the country.

Huawei provides telecommunication networks both for CDMA and GSM operators. The company's partners in Indonesia include Bakrie Telecom, Indosat and Telkom.

"Our investment in Indonesia right now is not really in manufacturing plants but rather in the development of human capital," Jun said.

"We will train more local talent and engineers, with the hope that we can use their experience in global communication technologies so that they can contribute to Indonesia's growth in the communication sector," he added.

Just last month, the company donated a sophisticated Next Generation Networks telecommunication system worth US$3.6 million to the University of Indonesia.

The donation was in fact part of an agreement signed during President Susilo Bambang Yudhoyono's trip to China last year, where Beijing offered assistance to help Indonesia to improve its information and communication technology.

Information and Communications Ministry then appointed the university as a training center for students and engineers alike.

Huawei itself has paid great attention to research and development. Each year, it invests no less than 10 percent of its sales revenue in R&D.

Around 48 percent of the company employees are engaged in R&D activities, which are distributed in eight research centers all around the globe including in India, the U.S., the Netherlands, Sweden, Russia and China.

Its R&D centers in Shenzhen, Shanghai, Nanjing (all in China) and Bangalore (India) have achieved CMM Level 5 certification from the Software Engineering Institute, a testimony to the company's commitment to world-class software development process management and quality control.

As of 2005, Huawei has applied for more than 14,000 patents, with 2,000 applications filed and approved internationally.

"Our success does not come from providing low prices for our partners but through providing innovations and solutions that can cut down operating costs by 30 to 40 percent," Jun said.

Jun cited an experience with a European telecom company where Huawei had come up with an innovation called the distributed base system, which incorporated a compact hardware that could be integrated into the existing system, hence reducing costs.


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