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The initiative to create strategic alliances between companies in Europe and the FarEast

 

-          a project to bring Philippine ICT companies and European ICT companies together in PartnerShips

 

Key-Note Presentation in Bruxelles

ICT Europe – GO East

By Jørn W.Phigalt,

Member of the monitoring committee for the BC-Net – Business Co-operation Network, Chairman for the EU’s group for ICT tools and techniques for PartnerShips, and CEO of ITM Europe (phigalt@itm-europe.dk)

 

As you know, the Philippines has for a long period of time been in EU's focus as perhaps the area where Information Technology related enterprises could offer European software houses and developers an expertise beyond what is normal expected from companies in the FarEast.

ITM Europe has been working together with ECCP - European Chamber of Commerce of the Philippines and based on our interest for as well global as PartnerShip activities in the ICT-industry, we have been asked by the European Commission to carry out a project with the aim to exploit European ICT enterprises expertise giving them the opportunity to develop software solutions through an alternative cost structure - like the one established on the Philippines.

ITM Europe is member of a number of groups and networks in the European Commission and is among other activities member of the monitoring committee for DG XXIII's initiative for business cooperation (BC-Net - Business Cooperation Network), chairman for EU's quality group for internationalization, chairman for the Technology & Innovation network for increased use of ICT in EU, and chairman of QCE - Quality Consultants Europe.

We have just finalized an assignment for the EU Commission regarding Business Process Reengineering of their international consultant’s network, which included implementation of techniques and a methodology for global partner search in the ICT-market. This task transferred our expertise and knowledge based on our internationalization concept - GO INTERNATIONAL - a concept, which is now the standard for business co-operation activities, when we discuss distribution channels, marketing co-operation and strategic alliances.

Our relations to the EU Commission has now secured European ICT enterprises a unique opportunity to evaluate some extreme attractive business options in the FarEast through a funding of partner search in the Philippines of 65% of the related costs for such an activity.

At present 23 ICT companies on the Philippines has already shown their interest in a PartnerShip with European companies. As the first companies with EU funding, we are now offering this set-up for ICT companies in the Northern part of Europe - a consequence of our membership of the European Union.

The finding[1] is based on single enterprises interest, but we have decided due to competitive and confidential issues to start with 15-18 ICT companies. As the interest to get access to this initiative already are strong, we have negotiated an option to include 5 more ICT-companies in a second round - also with 65% funding.

 

Interested ICT Companies

'ICT Europe - go East' is based on ITM Europe's expertise in global business with intensive searches for business partners in more than 290 cases, and is based on our European way of doing business, combined with our expectations and attitude.

From experience we know that companies, who want to exploit and evaluate the options related to the Philippines, will have one (or several) of the following mentions situations in mind...

  • a need to evaluate advanced or basic software development at a relative low cost structure (the cost structure on the Philippines allows them to offer projects and development assignment at a price in the neighbourhood of 30-35% of the cost in Europe).

  • a wish to find marketing, distribution or sales partners, who with home base on the Philippines can act in the FarEast on your behalf.

  • a wish to sell basic source code for products which no longer are relevant for the more advanced users in the 'western countries' but products which still with a 'face lift' could be of value for less advanced markets like fx. the former Eastern Europe.

  • a need to evaluate the ICT component industry on the Philippines, to find sub-contractors in the ICT field or supplementary products, OEM arrangements etc.

  • a with to attract an EU project where a part of the development could be done by using resources with a low cost budget.

  • a specific project (either development for own use or a specific customer related assignment) where the development with benefit could be placed outside the firm.

There are no specific demands for the European ICT companies, but we value highly the anticipated effort to co-operate with an English speaking organization through a dialogue regarding use of the developed solution, transfer of knowledge in application use in related industries, and the interest to add to the Philippine organizations a larger know-how in design and European view in system development.

As we also know that developing a PartnerShip is a demanding issue, we need to stress that mutual visits and change of ideas and views will be needed. Therefore the European companies must be willing to visit the Philippine enterprises, and also set time aside to welcome the Philippine developers and their management.

 

Why should you go to the Philippines.

You might ask yourself "Why go to the Philippines?" and take the risk there for development activities... There are at least 6 very good reasons....

  • An American education environment with huge traditions to the California university and college system, is the basis for all the resources we will be doing business with in a strategic set-up.

  • All resources that we involve in the projects speak fluent English, as English are the business language on the Philippines (The Americans have been there for more than 40 years until the late 80's).

  • The American market is the largest export market for Philippine products and the heavy demands from the American consumer is the striking force in their on-going product development.

  • Japan is their largest market for technological trade and exchange of ICT methods and techniques.

  • The Philippines has one of the FarEast's most modern infrastructures.

  • The inhabitants of the Philippines are open and they look for knowledge and inspiration. The have an easy way of adopting new methods and are open in the communication. At the same time their standards call for a modest earning potential.

 

Pre-evaluation of Philippine ICT companies

We pre-evaluate the Philippine ICT companies through interviews in Manila and Cebu. ECCP has already evaluated a number of solid enterprises for this project, but we want to supplement this picture with other companies who also have shown their interest for international business.

This will be done..

  • through contact to our embassies on the Philippines (the Danish, the Swedish and the Finnish representation)

  • through search in EuroTrade's network for FarEast holding relevant ICT enterprises

  • through a search in exhibition catalogues, materials, seminar program etc. from the past 3 years of events carried out in the FarEast

  • furthermore we look into Philippine companies who has participated in exhibitions in Europe and USA - events like CeBIT and COMDEX

  • through contact to the European foreign ministries trade departments in Copenhagen, Stockholm and Helsinki

  • through the Philippines representations in Europe

 

Profiling of European ICT companies

We carry out a profiling of the European companies where we focus on specific demands and expectations to the development and business partner on the Philippines. This process is an integrated part of our GO INTERNATIONAL Concept and follows our 7P-Plan, where we look at...

1.       Planning (overall strategy, plans, visions and development views)

2.       Places to go (where we also focus on other market areas in the FarEast for distribution or PartnerShip)

3.       Products to launch (looking in depth on specific projects, present products and 'old' versions)

4.       Partner potential (where we draw a profile of the expected partner incl. technology, demands and co-operation aspects)

5.       Promotion, PR and Penetration (looking at what we can offer in this aspect and what a cooperation will have of impact)

6.       Power in organizational set-up (the entire co-operation, management, monitoring, reporting, communication and implementation)

7.       Prices and conditions (terms and conditions etc.)

 

Seminar for Philippine ICT companies

Many Philippine companies need a better understanding for how to participate in a business relation in the ICT sector, especially when it comes to advanced software developers like the once we find in Europe. Therefore we conduct a business seminar on the Philippines where we focus on a cooperation with Europe. Furthermore we address the topics like use of software applications, expectations, documentation etc.

The overall goal for the seminar is to prepare the Philippine companies for business cooperation, but also to evaluate their level and involvement. The seminar is mandatory for all Philippine companies.

 

Profiling of Philippine ICT companies

We carry out a systematic profiling of all Philippine companies which has been pre-evaluated, participated on the seminar and who has shown a real interest for cooperation.

The profiling aims at the business areas where the companies are active, on their technological skills, development potential and international experience and understanding.

The profiling follows, just as the profiling for the European companies, our total concept for internationalization and our 7P-Plan. The profiling will be conducted at the Philippines organizations location on the Philippines. The idea is to discuss co-operation with a number of employees - giving us the opportunity to evaluate all aspects as serious as possible.

During the profiling, which we conduct, we will be accompanied by members from ECCP to get access to local views, reputation, validity of information and reliable data.

 

Seminar for European ICT organizations

Based on our observations on the Philippines during the profiling activity, former experience with business with FarEast and the expectations, we will carry out a number of seminars in Europe for the ICT companies who participate in the project. The specific focus will of course be business with FarEast and especially what to expect. The contents of the seminar will not only hold information regarding the Philippines, but also relevant information on other options in the FarEast.

 

Matching and Validation

Based on the profiles for the European companies, the profiles from the Philippines, the seminars conducted on the Philippines and in Europe, and the supplementary observations, we will carry out a matching, based on this analysis. This will be an analysis where we focus on various business opportunities and cooperation options.

 

Reporting of business opportunities

Based on the matching we report to the European companies of potential partners with a minimum of opportunities on the Philippines - all related to the profiles and demands. The European companies will have the option on a reporting meeting to ask for supplementary information and data on the selected companies, which will be validated and reported medio December.

We report to the Philippine companies on the opportunities they can expect together with the European partner and of course supplements the picture of the candidates.

 

Time schedule for the process

A partner search normally takes 7 weeks from we decide on the profile and until we can present suitable partner candidates. The process in this search is to guarantee that all involved will have the optimal decision material to go forward with a cooperation.

We hope you will participate and support this activity.

Thank you for your time.

 

  ITM Europe – the Acceptable Choice

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