01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
1
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT
market
Report
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
2
FINAL REPORT OF PROFESSIONAL PRACTICES
01 SYNERGY INTO THE COLOMBIA‟S IT MARKET
Autor
LAURA PATRICIA RAMÍREZ ÁLVAREZ
Tutor
ALEJANDRO SÁNCHEZ ARIAS
UNIVERSIDAD CATÓLICA POPULAR DEL RISARALDA
INTERNATIONAL BUSINESS PROGRAM
PROFESSIONAL PRACTICE
PEREIRA
E-
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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Insertion of 01 Synergy into the Colombian's IT market
Project International Business Practices
Report
Table Index 4
Figures Index 4
Abstract 5
Resume 5
Introduction 6
1. Presentation of the company 7
1.1. About 01 Synergy 7
1.2. Services 8
1.3. Mission 9
1.4. Vision 9
1.5. Corporate Values 9
1.6. Organization Chart 10
2. Diagnosis of intervention area 11
2.1. Intervention shaft 12
2.2. Intervention shaft justification 13
3. Objectives 14
3.1. General Objectives 14
3.2. Specific Objectives 14
4. Theoretical Framework 16
5. Schedule of planned activities 20
6. Presentation and Analysis of results 21
6.1. Developed Partnership 25
6.1.1. FEDESOFT 25
6.1.2. CUTI (Uruguay) 26
6.1.3. Mainsoft (Chile) 26
6.2. Commercial Alliance 27
6.2.1. Horus Systems 27
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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¨In the business we have to
take fluency like the water,
try to find the best route,
act with tranquility and
clarity, and give the best
result: BE ESSENTIAL¨
Self Creation
Figure Index:
Company Chart (page, 10)
Activities Chart (page, 20)
SWOT Analysis (page, 33)
Table Index:
Specific Objectives (page, 14)
Theories‟ approach (page, 16)
Table Task (page, 20)
Result Table (page, 21)
Translate Table (page, 44)
Data Base (page, 45)
6.2.2. Cell Fiction (Uruguay) 28
6.2.3. America Web S.A 29
6.3. Project Cooperate 29
6.3.1. ICDL Colombia 29
6.3.2. Colombia Digital 30
6.3.3. Uniminuto 31
7. Conclusions 32
8. Recommendations 33
9. References 34
10. Appendices 36
11. Annexes 44
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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ABSTRACT
01 Synergy an IT company with presence in India, USA and Netherlands; developed his
first insertion into the Colombia IT Market, though a group of SME in Colombia that look for
cooperated in IT project with the propose to increase the competitive of the country.
With this project is obtained the first step in the insertion process: create a data base off the
SME and give them an introduction about the 01 Synergy; and also, it was necessary design
strategies and bases for a future negotiation. The result was show to the principal SME in
Colombia and in Latin America the option to work with 01 Synergy.
Keywords: Information technology, Strategy Alliances, Competitive, India, Colombia
01 Synergy empresa proveedora de servicios TIC, con presencia en India, USA,
Netherlands; desarrolla un primer acercamiento al mercado Colombiano, por medio, de alianzas
con empresas Colombianas prestadoras de servicios de tecnologías de la información que buscan
desarrollar proyectos relacionados directamente con el plan de competitividad Nacional.
Con este proyecto se logro iniciar los procesos de recolección y primer acercamiento de
contactos, segmentación de estrategias y bases para futuras negociaciones, y presentación a 01
Synergy tanto al mercado Colombiano como al mercado latinoamericano
Palabras Claves: Tecnologías de la Información, Alianzas Estratégicas, Competitividad, India,
Colombia.
RESUMEN
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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Introduction:
INSERTION OF 01
SYNERGY INTO THE
COLOMBIA‟S IT
MARKET
These days to learn IT (information
technology) has the same importance
that learn to write and read; they‟re
taking a big place into the country‟s
competitive plan, provide them agility in their process and facilities of insertion into the global market.
The penetration of these technologies into the Colombia market is growing, but this growth don‟t have
the same impulse that the other countries have; the country still need great promotion and utilization of
these technology tools, and understand them as a good for obtain productive and export.
For these reasons, the project “Insertion of 01 Synergy into the Colombia‟s IT market” penetrating
obtain the mass of IT in all productive and services sector of the country, through to explore a group of
Small Medium Enterprises in Colombia (the 99.86% of national economic structure), that would like to
work with 01 Synergy (an India end-to-end IT solutions provider) as partner in: Customized Software
Development, QA & Testing (Software & Hardware), Business Process Outsourcing, Telecom
Services and Onshore & Offshore IT Staffing, developed project, and design commercial strategies and
products & services specialists in the SEM. This document provides an overview of the company 01
Synergy and the negotiation project that they had with the Small Medium Enterprises in Colombia.
Obtained to improve the business environment for the investors, through the investment in technology
infrastructure that the SEM do for diversity their products and services.
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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1. PRESENTATION OF THE COMPANY
1.1 About 01 Synergy
When a group of IT Industry veteran talents teamed up with „01 Synergy‟,
they launched an IT development firm with a difference, which boasted of
offshore development offices that specialized in making companies more
competitive for today‟s world. 01 Synergy is a 13 years-old leading global
services provider, driven by strong business practices and ethics. Since their
inception in 1996, they have incessantly innovated, re-modeled and re-designed
their systems and process because they believe in reducing cost. Hence, their
clients around the world enjoy unmatched technology-driven business solutions
that are competitive and cost effective. „01 Synergy‟ is an end-to-end IT
solutions provider, offering services and products spanning the entire spectrum
of Information Technology. With a multi-domain, multi-technology and multi-
delivery modes model, „01 Synergy‟ is fully equipped to offer its demanding
clients a superior mix of credentials, domain expertise and cutting edge
technology solutions. „01 Synergy‟s international business partner ensures a
strong global presence. The Company has partnered with some of the leading
software organizations in their respective countries to provide local support to its
global clients. Apart from their local offices around the world, they have
development labs in Pune, Delhi, Mumbai and Ludhiana (India). Their current
staff strength consists of 180 highly educated and experience IT engineers. In
end, „01 Synergy‟ is an India-centric Company, which has all the makings of a
successful offshore software-outsourcing partner.
About 01 Synergy
Services
Mission
Vision
Corporate Values
Organization Chart
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT market
Report
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
8
1.2 Services
Business Process Outsourcing
Their innovative, low-cost, flexible technology helps clients maximize the
efficiency of their corporate back office by reducing costs.
QA & Testing (Software & Hardware)
Their deep-seated knowledge and research in the field of Information
Technology ensure high impact solutions that help clients tap into fresh offerings
compete more effectively and optimize business potential.
New Media
The media and entertainment industry is continuously undergoing changes that
are largely driven by digital technology. In these fast-paced times, they help clients
to better understand their consumers, simplify processes and capitalize fresh
opportunities.
Customized Software Development
In today‟s highly competitive conditions business are faced with the challenge of
improving and sustaining performance. They develop strategic software solutions
that help their clients meet their goals faster.
About 01 Synergy
Services
Mission
Vision
Corporate Values
Organization Chart
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT market
Report
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
9
1.5 Corporate Values
Client Focused
They are committed to improving our clients ROI (Return on Investment) and
giving them a competitive advantage by providing them with the best possible
services.
Superior Results
Their teams of highly skilled personnel strive for operational excellence to ensure
matchless results.
Valued-Added Partnership
All their staff members are attentive and knowledge able problem solvers.
Winning Attitude
Their success-driven attitude combined with focus and confidence assures a
winning formula for all their clients.
1.3 Mission
Their mission is to become a leading service provider of global offshore QA &
Testing.
1.4 Vision
To provide businesses and organizations integrated solutions at an optimal cost
– ensuring on time delivery and improved software quality time.
About 01 Synergy
Services
Mission
Vision
Corporate Values
Organization Chart
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT market
Report
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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CEO
COO
WEB DEVELOPMENT
Project Manager
Team Leader
Team Member
BPO
Production Manager
Production Supervisor
Moderatos
KPO
Production Manager
Production Supervisor
Moderatos
HR / ADMN
HR
Manager
HR Executive
FOE
ACCOUNTS
Account Manager
Accountant
IT
IT Administrator
MARKETING
Marketing
Manager
Business Development
Executive
1.6 Company Chart
01 Synergy works with 7 departments focusing on developing high quality.
The Marketing Department has responsibilities in: Contribute towards generating
new ideas to expand the market related to development of software applications,
mobile applications, web development, and others; maintaining proper record of
all projects undertaken from start to finish; interacting with client and try to
understand his requirements thoroughly; discovering new business trade leads on
Internet, marketing development and new customer development.
Table No. 1: 01 Synergy Chart
About 01 Synergy
Services
Mission
Vision
Corporate Values
Organization Chart
Organization Chart
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT market
Report
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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2. DIAGNOSIS OF INTERVENTION AREA
01 Synergy being a global IT company and with a strong presence in USA
and Europe, decided to expand its market into Latin America specially
Colombia, through partnerships aliens, international cooperation, partnerships
trades, outsourcing, offshore and others. For this task was necessary found a
person who might interact with customers in Spanish language and who had a
management profile, being able to expand of trading horizon for the Company
through competitive advantages and realize market development and new
customer development, and give them an over-view about how it‟s the way to
do business in these countries and make them culturally aware of Latin
America.
The company has all the requirements, competitive advantages,
infrastructure and certifications necessary to enter in the Colombia market.
Therefore, the approach of this project for the company should be: What are
the critical points to focus the investigation particularly of insertion into the
Colombia‟s IT market?, additional it‟s important to ask if the Colombia
market is ready for a cooperation with the Indian companies in the Software
and Information Technology sector?
Diagnosis of
Intervention area
Intervention Shaft
Intervention shaft
Justification
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT market
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01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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2.1 INTERVENTION SHAFT
To expand the market in Colombia is necessary consistently contribute to
new ideas to expand the market related to development of software
applications, mobile applications, web development…etc, maintaining proper
record of all projects undertaken from start to finish, interacting with client, try
to understand their requirements thoroughly, doing Business Correspondences
with International Clients, talk to the clients over the phone/voice chat using
IM/Skype and others, discovering new business trade leads on Internet, look
after the related documentations that they are in line and submitted on time,
generate new enquiries from different sources, through the use of professional
social networking sites such as www.xing.com, www.linkedin.com, and others;
by sending message to embassies, Chambers of Commerce, Business
Associations, Technological groups; and on the basis of ITU (International
Telecommunication Union) studies, the investigation of the INSEAD (Business
School for the world) with the help of CII ( Confederation of Indians Industry)
about the Global Innovation Index 2009-2010 and support of the National Plan
of IT Technology by the Ministry of Communication of the Republic of
Colombia.
Diagnosis of
Intervention area
Intervention Shaft
Intervention shaft
Justification
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT market
Report
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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2.2 INTERVENTION SHAFT JUSTIFICATION
The outline of Offshore, Software and IT industry in Colombia is relative new
and the major impact that this industry generates on the competitiveness of this
country does create the need to seek cooperation with other countries like India
with more experience in this field.
“India’s domestic IT spends is exploding and many Indian companies are now
at par with their global counterparts in terms of usage of technologies. Foreign
R&D centers and high tech manufacturing units set up by global players here gives
India access to technologies that most other countries would not have so easily.
India is fast moving up the value chain and becoming Tier1 provider to some of the
Fortune 500 companies” (Synergy).
01 Synergy has all the requirements, competitive advantages, infrastructure and
certifications necessary to enter in these markets. With an ISO 9001 and CMM
certification lined up, shows that the company works with process and
infrastructure with high quality.
Doing emphasis on the various theories on the internationalization of the
company, foreign investment, trades agreements; support the point in these
theories, it‟s necessary develop a marketing analysis in order to get best way or
international strategy taking into account that this company has a competitive and
comparative advantage in software and technology services compared with
Colombia‟s companies.
Diagnosis of
Intervention area
Intervention Shaft
Intervention shaft
Justification
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT market
Report
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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Specific Objective
Indicator
1. Find the market size of
SME‟s in each of the Spanish
Speaking Countries
1.1 Marketing Research
1.2 Collection of business
data
1.3 Doing marketing in
Business Networking site
like Xing and linked in
1.1 Make a list of 50-
100 IT/ITes companies
in each country and
speak with them to see
to get an accurate
picture
2. Know if the SME IT and IT
companies would be willing to
partners and work with Indian
2.1 Marketing Research
2.2 Analysis of the business
concept
2.1 Identify what are
the main service areas
the SME‟s are looking
3. OBJECTIVES
3.1 General Objective
The aim is to explore a group of Colombia and see the potential for Small Medium
Enterprises, like 01 Synergy to work with them as partner for Customized Software
Development, QA & Testing (Software & Hardware), Business Process Outsourcing,
Telecom Services and Onshore & Offshore IT Staffing.
3.2 Specific Objectives
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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SME‟s 2.3 Analysis of the internal
and external Stakeholders
(Customers, Supplier,
Competitors)
for to partner with the
Indian SME‟s
2.2 Begin the
negotiation process
with 7 – 10 companies
from Spanish Speaking
Countries.
3. Add a new strategy to 01
Synergy
3.1 Create a strategy of
insertion to 01 Synergy into
the Colombia‟s market.
3.1 Strategic of how is
the best way to insert
01 Synergy into the
Colombia‟s market
4. Adapt the company‟s
documentation in Spanish for a
better communication with the
new market
4.1 Translate the English
company documents to
Spanish
4.2 Learning about
technology language with
the help of programming
staff
4.1 Give to 01 Synergy
all their documents
(BPO Presentation,
Software Presentation,
NMF Presentation, QA
& Testing Presentation,
Teaser Presentation,
Telecom Presentation,
IPE Presentation, Web
Sites (01 Synergy) in
Spanish
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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4. THEORETICAL FRAMEWORK
Given the magnitude and intensity of competition from
markets, the companies search to implement new methods
in their administration for the global customer market and
conquer them. Designing strategies based on use of
innovation, corporate values, internal grown of resources and knowledge, market
diversification and improved sales momentum. The internationalization of firms is ¨an
inherently complex phenomenon from a conceptual point of view which has been analyzed
from different perspectives. However, sometimes there can be some ambiguity in the
presentation and explanation of the topic because exist multiple acceptances¨ (Oskar, 2005).
The project involves the idea on the subject relying on theories such as: The Theory of
Internationalization, Location Theory, and Strategic Theory try to explain the firm‟s reasons
for wanting to outsource their products; provide to the project essential aspects when the firm
achieve selecting the optimal location for insertion.
The following chart will show the different approaches in which these theories work during the
development of this project.
Self creation and supported by (Octavio, 2007)
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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Theory of Internalization in approach of resources, knowledge
and information by (Wernerfelt, 1984) Wernerfelt says that theoretical
approach of the company isn't in their marketing activities, all tangible
and intangible resources. Specially the company internal resources
and how they obtained and developed (Jimenez Palmero, 2008). He
takes as a company aim to internalize: The strategic assets such as
technolgy, the tacit knowlegde and credentials, and global integration.
01 Synergy lives all these perspectives in his business practice, they
have embraced latest Web Technology initiatives in areas specializing
in J2EE and .NET. Usage of case tools like Rational Rose etc has also
enriched the engineering practices. The „01 Synergy‟ value
proposition to the clients is a mix of credentials, expertise and
technical knowledge, with an ISO 9001 and CMM certification lined
up; and also, the Company has partnered with some of the leading
software organizations in their respective countries to provide local
support to its global clients (01 Synergy). Taking advantages of these
objectives have already been obtained for the company; the project can
proceed to obtain the positioning of the foreign market with the best fit
through the acquisition of information and knowledge creation
processes.
More than a theory, it's a strategy for the company to analyze the
resources and capabilities they have and apply them in the market that
they want to enter.
.
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT market
Report
Theory of
Internalization
Theory of location
Theory of FDI,
International
Cooperation and
External trade
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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Having identified the advantages of the company, the theory of
location in approach of culture and multinationality seeks to ensure that the
insertion site to choose the company would be profitable and attractive to
their market,; through the company's strategic plan, as the choice of the site
influences the performance of the company's operations and therefore
meeting the objectives
Also, the theory recommend to all companies with high global presence like
01 Synergy, should be aware that ¨all the companies that enter into emerging
markets must adapt to local marketing conditions rather than applying their
domestic strategies¨ (Wright & Lockett).
After the company has defined their competitive advantages and select
the correct place to enter the market. They can continue to identify how their
entrance will take in the potential market and define the appropriate
strategies. The theories of foreign direct investment, cooperation and
external trade in approach of strategies, support the project in the selection
of what should be the most useful strategies to apply according to the
characteristics of the market, based on an analysis of component such as:
The degree of economic development, the markets size and its dynamics, the
exportation affiliates, macroeconomic stability, government regulations and
economic politics towards the IT (Gustavo & Rosario, 1996).
(Dunning, 1981) Dunning in his eclectic theory emphasizes that the
degree of economic development is defined by the gross domestic product
Theory of
Internalization
Theory of location
Theory of FDI,
International
Cooperation and
External trade
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT market
Report
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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and foreign direct investment, and it´s based on the company´s
advantages and the location advantages of countries, seen before;
supported by Muchielli (Muchielli, 1984), when he notes that the
company initially had to be borne in mind that you´re looking to
expand its pre-existing market.
Also, the theories offer points on evaluation and selection, eclectic
theory defining the degree of development has close relationship with
the country's ability to attract FDI. Agarwal (Agarwal, 1980) argues
that FDI does not always
follow the big market and high size of their GDP, and that FDI is
aimed at the realization of exports from the receiving country. Grosse
(Grosse, 1989) talks about how the government policies affect the
business activities, when the country is in recession periods increase
their benefic to attract foreign capital and in the opposite situation they
increase their national policies.
Theory of
Internalization
Theory of location
Theory of FDI,
International
Cooperation and
External trade
Project International Business Practices
Insertion of 01 Synergy into the Colombian's IT market
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01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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5. SCHEDULE OF
PLANNED ACTIVITIES
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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OBJECTIVE
% OF
PROGRESS
RESULT /
PRODUCT
INDICATOR
1. Find the market size of
SME’s in each of the
Spanish Speaking Countries
Marketing Research
Collection of business
data
Doing marketing in
Business Networking site
like Xing and linked in
75%
(Qualitative)
100%
(Quantity)
75%
(Quantity)
Support by
through the use
of professional
social
networking sites
such as
www.xing.com,
www.linkedin.c
om, and others;
by sending
message to
embassies,
Chambers of
Commerce,
Business
Associations,
Technological
groups (Annex
1)
70 Companies
Spanish
Speaking
Countries and
16 Companies
were from
Colombia
Find the
potential buyer
in all LA
countries,
specially in
Colombia
1.1 Make a
list of 50-100
IT/ITes
companies in
each country
and speak
with them to
see to get an
accurate
picture
6. PRESENTATION AND
ANALYSIS OF RESULTS
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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2. Know if the SME IT and
ITes companies would be
willing to partners and work
with Indian SME’s
Marketing Research
Analysis of the business
concept
Analysis of the internal
and external
Stakeholders
(Customers, Supplier,
Competitors)
75%
(Qualitative)
100%
(Qualitative)
75%
(Qualitative)
Support by
through the use
of professional
social
networking sites
such as
www.xing.com,
www.linkedin.c
om, and others;
by sending
message to
embassies,
Chambers of
Commerce,
Business
Associations,
Technological
groups (Annex
1)
Support by the
companies
documents and
take the IT
proposal to the
4Th Conclave
between LA
and India
In process to
negotiation with
5 Colombia‟s
projects: ICDL
Colombia,
Colombia
Digital,
ParqueSoft
Pereira and
Uniminuto; and
one Strategic
Alliance with
America Web
S.A.
And, also with
2 company in
Uruguay and
Spain.
2.1 Identify
what are the
main service
areas the
SME’s are
looking for to
partner with
the Indian
SME’s
2.2 Begin the
negotiation
process with 7
– 10
companies
from Spanish
Speaking
Countries.
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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3. Add a new strategy to 01
Synergy
Create a strategy of
insertion to 01 Synergy
into the Colombia’s
market
50%
(Qualitative)
The strategy
that continually
uses the
company is
through
Networking
sites, public
their projects in
internet and
direct contacts.
I propose four
new strategies:
Participate in an
IT Cluster,
Doing
cooperation and
strategies
alliances with
companies in
other countries,
Participate in
national
projects and in a
congress or
activities that
can give them a
strong presence
in the global
market.
The
implementation
is in process.
3.1 Strategic
of how is the
best way to
insert 01
Synergy into
the
Colombia’s
market
4. Adapt the company‟s
documentation in Spanish for
a better communication with
the new market
Translate the English
company documents to
Spanish
Learning about technology
language with the help of
programming staff
100 %
(Quantity)
All the
presentation and
web site are
complete.
(Annex 2)
Knowledge
4.1 Give to 01
Synergy all
their
documents
(BPO
Presentation,
Software
Presentation,
NMF
Presentation,
QA & Testing
01 Synergy
Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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75%
(Qualitative)
about the
technology
service that the
company offer
and I‟m in
process to talk
in their
languages
Presentation,
Teaser
Presentation,
Telecom
Presentation,
IPE
Presentation,
Web Site 01
Synergy) in
Spanish
RESULTS
Complete In process
near to
complete
In
process
Begin to
work in
the task
Doing
nothing
100%
75%
50%
25%
0%
Note:
Rating Methodology
01 Synergy
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6.1 Developed Partnership
6.1.1 FEDESOFT – Colombia Federation of Industry Software and Technologies
www.fedesoft.org
Profile: Fedesoft is the professional body more representative of the IT sector
grouped the software industry and information technologies, in order to represent
their interests before public and private institutions, nationally and internationally.
They work under the conviction that IT sector has greatest potential for economic
growth in the country and it‟s the development generator that Colombia needs.
They promote industry growth through a global strategy to business, related
entities, academia and government; help them to have a direction focused on the
sector targets.
Partnership Proposal: Obtain the membership in the federation and give an
introduction of 01 Synergy to the others Fedesoft members.
Results on the date: Fedesoft acceptance the participation of 01 Synergy and
public to the others members the interest of 01 Synergy to work with them. It
obtained new contacts and future cooperation proposals.
Task for the future: Continue in contact with the Federation and his members,
and begin with the process of negotiation with the potential partners.
NETWORKING RESULTS
01 Synergy
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6.1.2 CUTI – Uruguayan’s Chamber of Information Technologies
www.cuti.org.uy
Profile: CUTI‟s the organization that represents the Uruguayan industry
information technology (IT), recognized and legitimized in the country and abroad
for business, society and state.
Comprise some 300 companies and oranizations successfully operating in 52
markets and provide solutions to all five continents.
The organization is a referral center and an active partner in IT-related institutions,
such as incubators, academic-industrial centers, universities, technology parks,
guilds and associations.
Partnership Proposal: Obtain the membership in the federation and give an
introduction of 01 Synergy to the others CUTI members.
Results on the date: CUTI accept that they will help 01 Synergy with the
promotion and public to the other members the interest of 01 Synergy to work with
them. It obtained new contacts and future cooperation proposals.
Task for the future: Continue in contact with the CUTI and his members, and
begin with the process of negotiation with the potential partners.
6.1.3 MAINSOFT CHILE
www.mainsfot.cl
Profile: Mainsoft is a company dedicated to the representation, distribution and
01 Synergy
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installation of software technology, oriented IT departments of large companies in
the Retail, Banking and Telecommunications. Mainsoft represent the major
companies in Chile and Latin American software developers and technology
leaders.
Partnership Proposal: Create an alliance and technology partnership.
Result on the date: The analysis of the proposal is in process
Task for the future: If the companies find the viability to cooperate, it´ll need
continue with the process.
6.2 Commercial Alliances
6.2.1 HORUS SYSTEMS
www.horus-systems.com
Profile: Horus Systems Corp has a team of expert consultants covering all fields
of new technologies.
Through experienced professionals, partners and technology partners provides
business, strategy, development and technology applications to measure.
Horus Systems Corp carries out technological projects worldwide, allowing you to
have great agility when developing and customizing them to the needs of each
client.
Cooperation Proposal: Find the viability that Horus Systems represent 01
Synergy in Spain.
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Result on the date: The analysis of the proposal is in process
Task for the future: If the companies find the viability to cooperate, it´ll
need continue with the process.
6.2.2 CELLFICTION
www.cellfiction.com
Profile: Cellfiction is an enterprise located in Montevideo, Uruguay,
specialized in the development of audiovisual content created and produced for
mobile phones.
They generate content of their own, which they commercialize through various
distributors around the world.
They integrate the “Ingenio” program, a business incubator that operates in the
Technological Laboratory of Uruguay (LATU), with financial support from the
multilateral investment Fund (FOMIN, due to its acronym in Spanish), the
Inter-American Development Bank (BID) and the World Bank‟s “InfoDev”
program.
Cooperation Proposal: Development a commercial cooperation, where
CellFiction provide his new media service and 01 Synergy supply the
programming service.
Result on the date: They have the first approach; CellFiction request a budget
for the develop mobiles application programming.
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Task for the future: Continue with the process and find more potential projects to
develop.
6.2.3 AMERICAWEB S.A
www.americawebsa.com
Profile: AmericaWeb S.A is a training center which is highly qualified technicians in
new Information Technologies; application new information and communication
technologies in educational administrative and academic processes, through digital
education, in an open and flexible training.
Partnership Proposal: Development a marketing cooperation, where AmericaWeb
S.A provide his sales and marketing staff, and 01 Synergy supply the services.
Result on the date: The cooperation proposal is in analysis process.
Task for the future: If the cooperation proposal is accepted, continue with the
process.
6.3 Project Cooperate
6.3.1 ICDL COLOMBIA
www.icdlcolombia.com
Profile: ICDL COLOMBIA represent ECDL Foundation in Colombia, It´s the
certifying authority of the leading international computer skills certification program –
ECDL / ICDL. The quality and reputation of our certification programs are built on
over a decade of experience in successfully delivering Information Communication
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Technology (ICT) certification programs to over 9 million people, in 41 languages
around the world.
They global success stems from their pioneering role in identifying and developing
programmer content, our commitment to ensuring rigorous test design methodologies
with an ongoing adherence to high quality standards.
Project Proposal: Waiting, the process is slow because the change of government.
Result on the date: In process MBIA DIGITAL
www.colombiadigital.net
Task for the future: If the cooperation proposal is accepted, continue with the
process.
6.3.2 COLOMBIA DIGITAL
Profile: The Colombia Digital Corporation is a public-private non profit
organization that has been consolidating itself as a think-tank, dedicated to the analysis
of national and international policies and experiences that use Information and
Communication Technologies (ICT) as tools for the development and execution of
projects that promote the use and appropriation of ICT in Colombia.
Project Proposal: Waiting, the process is slow because the change of government.
Result on the date: In process
Task for the future: If the cooperation proposal is accepted, continue with the
process.
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6.3.3 UNIMINUTO
www.redsocial.org.co
Profile: Uniminuto is a Project looking creates a training center in information
technology and communication, as a part of the national strategy of massif the
internet Access inside the Colombia‟s neediest communities.
Project Proposal: Find the viability to participate in develops this project.
Result on the date: 01 Synergy accepted participate in the project provided 2
Indians developers and the guide of the courses. In this moment 01 Synergy it‟s
waiting the Uniminuto offer.
Task for the future: Depends of the Uniminuto replays, if 01 Synergy sees the
viability and balance in the negotiation, the process will begin.
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Colombia is aggressively negotiating trade and investment agreements, expanding its
markets and becoming more attractive to investors (Proexport Colombia); this strong
growth is based on the increase invert and the high level of production. The Colombia
government has like goal: give the best conditions for the IED trough Free Trade Zone,
Legal Stability Contracts, Income Tax deductible expenses, and Tax incentives by sector
(Relating to Free Trade Zone regime into the BPO sector, the companies have the 50% off
Income Tax and sales to the local market).
The key to insert 01 Synergy and had the first approach with the Colombia IT sector was
through the national association. This kind of groups represents the national industry
information technology and recognized and legitimized in the country and abroad for
business, society and state. That‟s why the investigation was focus in find this association
and converts 01 Synergy in a partner or membership, meeting point in developing
cooperation and strategies alliances. With this project ¨Insertion of 01 Synergy into the
Colombia‟s IT market¨ was able to obtain the first approach with the association, the
promotion and public to the other association members the interest of 01 Synergy to work
with them and obtained new contacts and future cooperation proposal, and permit to the 01
Synergy‟s employees come near to a new culture, language and style to work.
CONCLUSIONS
In the last few years, Colombia has
experienced a marked improvement in its
macroeconomic performance, internal
security and stability for business.
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8. RECOMMENDATIONS
Through a SWOT Analysis was identified the critical point for intervention and
bring recommendations:
01 Synergy in Ludhiana are doing and excellent process. This year the office completes their
1rt anniversary of operation in the city and it´s obtaining good results. The marketing staff is
growing with new trainees, all for different part of world and different maternal languages; the 01
Synergy proposes is profit their cultural knowledge and openness their potential market.
Otherwise in this stage the company don‟t need a lot suggestion, only wish the best successful.
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9. REFERENCES
Agarwal, J. (1980). Determinants of Foreign Direct Investment: A survey. Journal of the
Kiel Institute of World Economics .
Bittencourt, G., & Domingo, R. (1996). decon.edu.uy. Recuperado el 10 de April de
2010, de http://decon.edu.uy/publica/1996/Doc0696.pdf
Dunning, J. H. (1981). Explaining Outward Direct Investment of Developing Countries:
In support of the eclectic theory if international production. En K. k. M,
Multinational from developing countries. Lexington Books.
Grosse, R. (1989). Multinationals in Latin America. Routledge London and New York.
Jimenez Palmero, A. (2008). La internacionalización de la empresa a través del enfoque
de recursos y capacidades. Gestión Joven (2).
Muchielli, J. L. (1984). Investissement Internationaux et dynamique des avantages
comparativesdes nouveaux pays industrialises. Revue Economique (3).
Synergy, 0. (s.f.). www.01s.in. Recuperado el 8 de April de 2010
Vazques Nuñez, S. O. (2007). Principales enfoques teóricos e investigaciones empíricas
generales sobre la internacionalización de Pymes. Facultad de Contaduria y
Administración de la Universidad Autónoma de Baja California.
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Running Head: 01 SYNERGY INTO THE COLOMBIA’S IT MARKET
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webs2002.vab.es/jmasson/information/mason_vazquez.pdf.
Villareal Larrinaga, O. (Octubre de 2005). www.elcriterio.com. Recuperado el 10 de
Abril de 2010, de www.elcriterio.com/revista/aioica/...2/jimenez_palmero.pdf
Wernerfelt, B. (1984). A resource-based view of the firm (Vol. 5). Strategic Management
Journal. Wright, L. Internationalization of Wester Ventures Capitalist into Emergings
Markets: Risk
Banco Internacional para la Reconstrucción y el Desarrollo / Banco Mundial. (2010).
Doing Business in Colombia. Washington, D.C. 20433.
Ministerio TIC Colombia. (2009). Mi Pyme Digital. Colombia.
Proexport Colombia. (2009). Invest in Colombia. Bogota D.C .
UIT- Unión Internacional de Telecomunicaciones. (2010). Medicion de la sociedad de la
información. CH-1211 Ginebra, Suiza: Place des Nations.
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SOME FACTS THAT
INDIA MAYBE DIDN´T KNOW…
ABOUT COLOMBIA’S
IT SECTOR SECTOR anoyu
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Graphic: Colombia has experienced a marked improvement in its
macroeconomic performance. (Proexport Colombia)
10. APPENDICES COLOMBIA THE CENTER FOR DOING BUSINESS IN LA
In the 2010 “Doing Business Report,” The World Bank ranked Colombia as the
most business friendly country in Latin America. And, second country in the
region which protects the investors according to the World Economic Forum‟s “2009
Financial Development Report”
“Colombia has a sustained record of sound economic policies, and has very
strong economic fundamentals and institutional and policy frameworks. The
Colombian authorities‟ have responded appropriately to the global financial
crisis, and have demonstrated a commitment to maintaining this solid record”.
IMF Managing Director Dominique Strauss-Kahn, 2009
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Colombia Natural Strategies
The excellent strategic location of Colombia makes for an unbeatable equidistant
point for the markets of the continent, allowing for shorter transit times, faster delivery
and very competitive international cargo transport services.
Colombia is in the same time zone as several important cities in the
United States and Latin America; Colombia is in permanent communication with
Madrid due to a time difference of only six hours.
Source: Colombia (Proexport Colombia, Pag10)
Source: Invest in Colombia (Proexport Colombia, Pag10)
The People Factor
Colombia is the third most populated country in Latin America with the
fifth largest economy, an economy that, as mention before has been fueled by
the IT sector. This sector benefits from a population that ranks second in
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availability of high qualified labor (Chile is first) and by its quality of education
in the areas of Math and science. (Costa Rica is first).
Value is created by leveraging this educated work force into producing software with
high degree of difficulty and very specialized, software for mission critical
applications, with low cost of labor. As a matter of fact, Colombia today, has the
lowest cost for programmers in Latin America.
Doing business in Colombia you will find a maturing legal system, an excellent
communication infrastructure, good intellectual property laws and a mind set of
getting things done with the best business and software engineering practices.
Ideal Export Platform: Colombia holds an advantage of having signed trade
agreements. This gives companies preferential access to markets that extend to more
than 1.2 billion consumers, a circumstance that is only enhanced by the strategic
location of Colombia.
Source: Invest in
Colombia presentation
and
IMD World
Competitiveness, 2009.
Ranking among 57
countries. World
Economic Forum,
Executive Opinion
Survey 2008, 2009
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The most competitive Free Trade Zone in Latin America: 15% Income
Tax as well as the possibility to sell to local markets
• A single 15% income tax rate, allowing sales in the local market.
• .No customs taxes (VAT and customs duties).
• .VAT exemption for raw materials, inputs and finished goods sold from the
national customs territory to industrial Free Trade Zone users.
• .Exports made from Free Trade Zones to foreign countries (except Peru) benefit
from international trade agreements.
• .No customs taxes on machinery, related directly to the business operation
which is imported from abroad and entered into the FTZ.
Single Enterprise Free Trade Zone (SEFTZ): Investors can take advantage
of the benefits provided by the Free Trade Zones even by locating out of a
Permanent Free Trade Zone.
Investors can sign Legal Stability Contracts with the Colombian
Government: In order to promote new investments and expand existing ones,
the government provides investors the option to sign a Legal Stability Contract,
securing key conditions for investment promotion. Companies must meet the
following requirements:
• Minimum investment of USD 1,930,000.
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• Investors must pay a premium to the government equivalent to 1% of the
investment.
• The period of the contract can last between 3 and 20 years.
Income Tax deductible expenses
Among the deductions included are the following:
• .30% of the capital invested in the acquisition of productive real assets.
• .100% of the amount paid for industry and commerce, signs and billboards,
and property taxes during the corresponding taxable year, as long as these are
directly related to the taxpayer‟s economic activity.
• .25% of the tax paid on financial transactions may be deducted, regardless of
their relationship to the taxpayer‟s economic activity.
Colombia has Double Taxation Agreements + International investment
agreements with India.
Source: Invest in Colombia (Proexport Colombia, Page 9)
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Colombia’s IT, the best kept secret
IT Services
• 27,000 business graduates and 13,000 engineering graduates per year.
• Seven cities with more than 500,000 inhabitants.
• Neutral Spanish accent.
• Market: USD 1 billion, growing at a rate of 42% in three years.
The IT sector of the Colombian economy has experienced a huge surge. Today
is one of the most dynamic segments with ample competitive advantages for
any business that wants to profit from the tremendous values offered by the
Colombian IT companies in the software and BPO markets.
The Colombian IT sector as a percentage of the Colombian GDP is the second
largest in Latin America thanks in the most part to the software segment which
employs over 32000 people. The IT sector is expected to grow to over 2.37 billion
dollars by 2009 with the BPO side having a larger increase over software
development.
Colombia‟s IT sector already includes several of the world largest outsourcing
companies. IBM, Accenture and EDS are riding the crest of the wave along with
world giants such as Oracle, Microsoft, Sun, Dell and many others. All these
companies have already discovered the advantages of outsourcing and doing
business in Colombia.
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BPO&O
IT SERVICES
& SOFTWARE
Source: Invest in Colombia (Proexport Colombia, Slide 40)
Source: Invest in Colombia (Proexport Colombia, Slide 42)
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11. ANNEXES
1. Annex 1
DATA BASE LATIN AMERCIA IT ASSOCIATION
Propose: Convert 01 Synergy in a member of these associations
COUNTRY ASSOCIATION URL EMAIL1. Argentina CESSI www.cessi.org.ar [email protected]
2. Argentina CICOMRA www.cicomra.org.ar [email protected]
3. Bolivia CBTI www.cbti.org.bo [email protected]
4. Brazil ASSESPRO www.assespropr.org.br [email protected]
5. Chile GECHS www.gechs.cl
6. Chile ACTI www.acti.cl
7. Colombia Fedesoft www.fedesoft.org [email protected]
8. Colombia Colombia Digital ingles.colombiadigital.net [email protected]
9. Colombia ParqueSoft www.parquesoft.com
www.parquesoft.net
www.parquesoft.org
10. Costa Rica CAMTIC www.camtic.org
11. Ecuador AESOFT www.aesoft.com.ec [email protected]
12. Spain AETIC www.aetic.es
13. Spain ASIMELEC www.asimelec.es [email protected]
14. Spain ASCEMTIC www.ascentic.org [email protected]
15. Spain AETICAL www.aetical.com
16. Spain AUTELSI www.autelsi.es [email protected]
17. Guatemala SOFEX www.export.com.gt [email protected]
18. Honduras AHTI www.AHTI-hn.org [email protected]
19. Mexico AMITI www.amiti.org.mx [email protected]
20. Panama CAPAtec www.capatec.org.pa [email protected]
21. Peru APESOFT www.apesoft.org
22. Uruguay CUTI www.cuti.org.uy [email protected]
23. Venezuela CAVEDATOS www.cavedatos.org.ve [email protected]
24. Venezuela Negocio Pyme www.negociopyme.com.ve [email protected]
25. Tenerife ASINTE www.asinte.org [email protected]
Latin America ALETI www.aleti.org
World WITSA www.witsa.org
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2. Annex 2