[kictanet] M-Kopa Solar fires 18% of its staff including all developers, outsources work to a foreign company

[anyega jefferson]

Follow the money, chief, which strategy creates the lowest operating costs?


And we kinda can't begrudge anyone , for seeking profit maximization,
though i'd think Kenyan developers are the most affordable

On Mon, Mar 12, 2018 at 12:04 PM, Watila Alex via kictanet <
kictanet at lists.kictanet.or.ke> wrote:

> Good Afternoon,
> Are kenyan developers to expensive or unable to meet the grade. or is
> something else happening here
>
> Article from M-Kopa Solar fires 18% of its staff including all
> developers, outsources work to a foreign company
> <http://kenyanwallstreet.com/m-kopa-solar-fires-18-of-its-staff-including-all-developers-outsources-work-to-a-foreign-company-linked-to-new-cto>
>
> M-Kopa Solar fires 18% of its staff including all developers, outsources...
>
> Kenya based pay-as-you-go solar provider M-KOPA Solar has fired
> undisclosed number of staff including most of it...
>
> <http://kenyanwallstreet.com/m-kopa-solar-fires-18-of-its-staff-including-all-developers-outsources-work-to-a-foreign-company-linked-to-new-cto>
>
>
>
>
> Kenya based pay-as-you-go solar provider M-KOPA Solar has fired
> undisclosed number of staff including most of its developers. According to
> people familiar with the matter who requested anonymity, the developers
> work has now been outsourced to a foreign company that is linked to the
> company’s new CTO.
> The exercise, which was completed in December last year affected a number
> of employees and some of whom were absorbed by Safaricom according to the
> source.
> We sought comments from the company’s CEO and Co-Founder Jesse Moore, who
> confirmed the layoffs and explained that they were necessary due to
> rising costs of technology and there was need to generate profits and give
> returns to investors.
> “I can confirm that we completed a restructuring process in December 2017.
> This was done to reduce fixed costs and keep us on the path to
> profitability. Overall, the company reduced headcount by 18% covering all
> departments and all levels in Kenya, Tanzania, Uganda and UK. We are
> outsourcing more of our technology work, maintaining a smaller in-house
> team to work directly with outsourcing partners in Kenya and overseas.” he
> noted.
> He went on to say that this was the right thing for the company’s
> long-term sustainability, “This means building a sustainable, profitable
> company that offers impact for customers and returns for investors.”
> On whether the company had outsourced the IT services to a company that is
> linked to the new CTO, this is what he said.
> “In mid-2017 our Acting CTO was seconded to us from one of our outsourcing
> partners, when our previous CTO left the company. Our board approved this
> and the individual is strictly recused on procurement decisions with
> companies where could be a potential conflict of interest.”
> The company was started by Nick Hughes, an Englishman, and his Canadian
> co-founder, Jesse Moore. Hughes is a former executive at Vodafone, while
> Moore was working for the GSMA Development Fund, a mobile
> telecommunications industry group, where he was in charge of identifying
> opportunities to make mobile services available to people in developing
> countries. M-kopa is one of the best-funded startups in Africa having
> raised more than $152 Million since inception in 2011. However, a big chunk
> of this financing is in form of debt.
>
>
> Regards,
>
> Alex
>
>
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-- 
Anyega M Jefferson

jeffersonanyega at gmail.com

0703824326

Start where you are,use what you have and do what you can.
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