Philip Gillen has moved quite a bit in the course of his career - from teaching in Switzerland to heading Intercomp, a top company that outsources for big multinational corporations in Russia. Recently, he spoke to The Leader about outsourcing in Russia.

Could you tell us a bit about your educational background?

After graduating with a B.A. degree in English and Philosophy from UCD Dublin, I worked at various odd jobs before working as a teacher in a private school in Switzerland between 1987 and 1988. The school was a multinational environment with most of the students coming from Germany, Italy, the United States and Switzerland. Afterwards, I went to London to train as an accountant while working with in a small software risk-analysis and information company.

What were your expectations when you came here the first time?

While in Switzerland, watching the changes underway in Europe, my friends and I had speculated on the possibility of maybe working somewhere like Prague and Budapest if the Iron Curtain were ever to come down. We never expected then that it would come down and so fast.
However, when I came here the very first time, it was because I had come to see my sister, who was working here then. I arrived here first in August 1992, I was captivated by the city, probably because it was summer and everything seemed so relaxed. Besides, I started to get to know one of my sister's friends... Now we have two children and our sixth wedding anniversary is this August!
I returned later in 1993 and got a job at KPMG, where I worked for three years, and had a brief spell at Deloitte before joining Intercomp through an old acquaintance from KPMG days, who was moving the financial operation to Moscow in 1998. When the former managing director was recruited into a bigger job, I took over initially as the acting managing director, and then that became full-time.

How did you overcome the cultural and language barriers?

Broadly speaking, things were not difficult culturally. In terms of the office-oversight environment, most people spoke English very fluently. I did not know the language before coming here and, today, I still do not speak it fluently, though my level is a lot better than it was then, thanks in part to my Russian-language teacher and my two children speaking mainly Russian!

Please, could you give us a brief highlight of what your company does?

We outsource the finance, HR and related administrative functions that firms don't want to do themselves. Though it's a fancy name, "outsourcing" simply means shifting parts of your operation or processes to specialists so that you can concentrate on your core, or revenue-generating, portion of your business.
With outsourcing, a firm takes on a partner for certain areas of its operations, a partner who invests in, as we say, "our portion of your business." Essentially, this is not just about cost reduction; it's more of cost rationalization and optimization of profits as you give your non-critical headaches to a specialist.
We are probably the leading provider of financial and administrative outsourcing in Russia because it's our only business; it's something we are more focused on than anyone else whose services overlap ours.
The recognition of the fact that we live in the information age, and that the means of production - the old economics term - can be condensed into smaller units, has led business managers to the conclusion that it's no longer necessary to have a single enormous mechanism that vertically integrates every process and ties up huge sums of capital.
Before, if one had a large organization, a manager would want to have as much of the production process directly under his control as possible, but this presupposed a very mechanistic approach to production and the workforce. Now, most tasks and related responsibility for them can be pushed down to the production level. Previously people at these levels would have been little more than cogs, but they now have far more knowledge and capability to act and react to a given situation than they would within a large organization.
So, a place like Russia, which is economically developing but has a well-educated population, is an ideal opportunity for outsourcing, whether in terms of marketing, production, logistics or finance and administration. This is particularly true today, as a large number of progressive firms are shedding aspects of their production processes that are no longer essential to them.

How you do see the present economic situation in Russia?

Positively. But then I've always been positive about Russia. I don't know whether this is due to my naivete or wishful thinking. This country has a particular advantage - a huge, well-educated population and the desire to learn and develop, which is a critical factor in modern business. Besides, this trend is continuing to spread from Moscow to St. Petersburg and further out into the regions.
Generally, there is a high level of development now in the country. But it's not going to be smooth development for a very long time - the Irish poet Kavanagh said that, as he became older, he understood that life had to do with "faith, hope, and sometimes even a little love" - that line somehow fits.

What are your company's plans for 2002?

We shall continue to invest in the economy, in the short term on our office in St. Petersburg, which focuses on supporting clients there. We also plan to spend more resources on training and developing our staff. We already have high levels of technical skill; the focus now is to develop our "softer" client and management skills. These will enable us to continue grow alongside our partners.
Our real challenge is to broaden our appeal to a wider range of companies while adding even greater value to their operations. Much of what we started in 2001 will only begin to bear fruit during this year and beyond.

What is your formula for success in Russia?

I don't think it's different in Russia than elsewhere. It certainly includes patience, determination, perseverance, confidence, trust and honesty In my opinion, I think these features characterize most successful people here. It helps, too, if one likes challenges and is comfortable in a very fluid environment.
Of course, there are frustrations here, but most developed economies had to go through similar steps in the course of their development. Economically, we are passing through more of these stages in Russia, and more quickly - that's disorientating and bewildering for people.

How do spend your free time?

I like to spend what free time I have with our children, so Legos and watercolors are my main leisure activities at present!