Monday, July 03, 2006

From concept to Cambodia

Sunday, July 02, 2006
By WILLIAM FREEBAIRN
The Republican (Mass., USA)
wfreebairn@repub.com


Jeremy Hockenstein studied economics at Harvard and MIT. He worked for the elite number-crunching consulting firm McKinsey & Co.

"I kind of believe in the possibility of the marketplace to provide opportunities for people," said the New York City resident.

That belief was strengthened as Hockenstein and his partners dreamed up a way to launch a business that would help Cambodia's people on their long road back from a brutal regime and capitalize, ultimately, on the global economy.

Digital Divide Data, of which Hockenstein is chief executive, has local members on its board of directors and a relationship with Springfield philanthropist Harold Grinspoon.

Hockenstein was in Longmeadow last week talking to potential supporters of the company at the home of Dianne F. Doherty, regional director of the Massachusetts Small Business Development Center.

Doherty joined the board of directors following a visit to Cambodia with Grinspoon, who has provided grants to the organization.

Doherty said she came to see that jobs at Digital Divide Data were changing lives in a society still struggling to recover from the ravages of the Khmer Rouge regime, which killed millions in that country.

Hockenstein, 35, formed the firm in 2001 after a visit to Cambodia as a tourist convinced him there was a need for employment opportunities in that nation. Taxi drivers were spending a quarter of their weekly income on English classes and many Cambodians were being trained to use computers, he said.

But there were few opportunities for those completing such studies.

With several friends he returned to the country and concluded that an outsourcing company could bring money to the country, which suffered under the Khmer Rouge regime for decades.

The friends decided that a Cambodia-based data entry business that could be appealing to customers from the West. Cambodian workers could enter data into computers with their new English language and computer skills, he said.

A core group of workers was trained at a company in India that was doing similar work.

The company opened its doors with a few computers and a handful of employees.

The first customer was the Harvard Crimson, the college newspaper at Hockenstein's alma mater.

However, the response in some quarters surprised the founders. News reports in Boston included criticism that the company was exploiting Cambodian workers.

"This was something very positive for people's lives," he said. Digital Divide Data pays workers $75 per month in a country where the average wage is about $300 a year.

In addition, the company asks workers to put in only 6-hour days and encourages them to spend part of their day studying. Charities provide workers up to $20 a month in scholarships to area schools and colleges.

"It's an opportunity for people to go to school and support their family at the same time," Hockenstein said.

Grinspoon said his support helps pay for the education workers pursue simultaneously with their employment.

"It's very exciting to see all these people typing in this room," Grinspoon said. "What he's doing over there is amazing," he said of Hockenstein.

Today, Digital Divide Data employs 200 people at two locations in Cambodia and one in neighboring Laos. It is registered as a charity in the United States, as a non-governmental agency in Cambodia and as a private business in Laos.

The goal is to break even on operations, which it has, and raise education aid for workers from charities and foundations. The firm has had cumulative revenue so far from customers of $1 million, Hockenstein said.

The company has grown by offering quality data entry and related services, he said. The fact the firm has a social mission gets them in the door of prospective clients, Hockenstein said, but price and quality win the business.

A recent mention in the Thomas Friedman book 'The World is Flat' has brought even more attention.

"It's brought a lot of interest around the world from people who want to do something similar," he said.

The group's mission remains the same as it approaches its fifth anniversary this fall, when a trip and celebratory banquet are planned in Cambodia.

"Without some extra intervention, places like Cambodia and Laos would be left behind," Hockenstein said.

1 comment:

Anonymous said...

This is a good opportunities for Khmer people for Mr. Hockenstein to bring job and training to the Khmer. And also, giving opportunities to further the skills by going to study with the grant from his company. I don't think Mr. Hockenstein is exploiting Cambodia. If he is the First to set example for businesses cooporation to flock to Cambodia, then we would know for sure people are better off. At least, they can be self-dependent. Ah Hun Sen government is not to give anyone a job or any assistant. The Only thing Hun Sen do is make people suffering more.

Train the People. Let them come.