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'Insourcing' wins Augen Software international accolade

New Zealand tech company Augen Software Group has been named one of the most innovative companies in the Asia-Pacific region, receiving a prestigious Red Herring Top 100 Asia Award this week.

New Zealand tech company Augen Software Group has been named one of the most innovative companies in the Asia-Pacific region, receiving a prestigious Red Herring Top 100 Asia Award this week.

While many Antipodeans are struggling to work successfully with the Asian market, Augen is surging ahead with the concept of “insourcing”.

According to chief executive and co-founder Peter Vile, insourcing is about extending your own company into another country to take advantage of cost-savings as well as tap into a larger pool of resources.

“Traditional outsourcing commonly involves contracting another company in another country in order to increase scale and/or lower cost. There are many disadvantages to this model, however – especially where there is a significant difference in culture and language, and where the business requirements are complex."

Augen has set up an operation in Vietnam to deliver software services to its New Zealand customers, with all work managed by the company in New Zealand.

"This took us four years to innovate and perfect, but the end result is that New Zealand businesses get a seamless service at a lower cost - in most cases with very significant savings - and the ability to control input, output, and quality, and guarantee the outcome.

"Plus the capital still flows through the New Zealand economy. It’s a new way of thinking, and one that could bring some enormous economic benefits to New Zealand in the long term in many ways if applied on a larger scale.”

Augen’s co-founder and international development director Mitchell Pham says the business model has worked particularly well in Asia because of the company’s focus on leveraging its cultural capital.

He said Augen saw each business interaction as a cultural exchange.

"By sharing values, traditions and beliefs with our customers, we are able to go much further and work more closely together than businesses which focus on economic capital alone. This is enormously important in Asia and the reason why we have been able to seamlessly integrate our company across both markets. Both New Zealand and Asia stand to benefit from this type of approach."