With all our staff safe and the situation around us showing signs of improvement, Virtuos studios in China are now fully operational again. This is the result of 4 weeks of efforts made to adapt to measures of virus containment taken across the country.
1.) All Virtuos China staff and close relatives are well, with no signs of infection reported. 90% are now back to their homes in Shanghai and Chengdu. Only 75% are back in Xi’an where tighter controls are still in place. All 3 cities have had more than 2 consecutive weeks of decline in new cases reported daily. Considering all the hygiene measures taken outside and inside the office, actual risk to our health remains negligible.
2.) Development has resumed at scale in all 3 studios. Shanghai has 85% of its teams back online and expects 90% next week. Chengdu has 90% this week and expects over 90% next week. Xi’an is at 70% this week, expecting 80% next week. In the 3 cities, we see encouraging signs of activity with public transportation and restaurants coming back into operation a little more each day.
3.) Delays on projects are below 3 weeks for the majority of projects. Our target of keeping delays between 2-3 weeks for the majority of our clients is achieved. Under the current favorable scenario, we still expect to be able to catch-up and absorb these delays within the next one to two months.
4.) The health situation could still change but we are prepared. Our Continuity Team established plans for every project and our Admin Team set-up 2 alternative floors in Chengdu and Shanghai to mitigate risks. If the situation worsens in one of our studios, we will leverage a combination of these alternative floors and our other studios to minimize impact on our clients.
All in all, the last 2 weeks have been very encouraging. I am very grateful for the extraordinary work put-in by our Chinese teams to absorb what was a massive shock to the whole country. We have put in place measures to ensure we can stay flexible and transfer activity between studios should the situation worsen. However, assuming current trends continue, we expect to be completely back to normal in March.
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