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Hi All,
On Wednesday last week I attended the ITANZ / NZ Software Association / NZTE ‘Outsource to New Zealand’ briefing in Wellington. I was there representing both Nightside and CSI (as there was no Christchurch briefing planned, although the presenters indicated that this was possible if there was enough interest). I was asked by the CSI Executive to provide a brief report on the briefing.
This initiative will mainly be of interest to those companies that provide (or would like to provide) software development/maintenance services to the UK market. I’m working on getting a copy of the presentation given, so email me if you would like to see a copy.
Background: A group of mainly Auckland/Wellington based businesses approached NZTE with a proposal to get the Gartner group to do a study/report on New Zealand as an Outsourced software services destination. The proposal was accepted and Gartner prepared the report which listed NZ as an ‘up an coming’ outsource destination and outlined a process whereby we could prepare/position ourselves in the market place. The presenters at the briefing indicated that the Gartner report would be available (I’m working on getting this too).
The ‘Outsource to New Zealand’ (O2NZ) initiative is a direct result of the Gartner report.
Companies Currently Involved: (I missed some here, but you get the picture – it’s the bigger players in the Govt/Corporate market…) BearingPoint CGNZ Datacom EDS Synergy Provoke Solnet Unisys +++
Summary: - O2NZ is focused initially on the UK market. This is primarily because the there is a Gartner Outsourcing Tradeshow in London on April 26/27 – as a result the initial drive is to attend the tradeshow (its only run once every 2 years) with a NZ branded booth (see weblink below for logo etc.). - According to Gartner the UK ICT Market is approx $57b USD and approx $3b USD is outsourced – this is growing by 40% (1.2b USD) per year. - The O2NZ concept group sees an opportunity to build a presence over the next 18 months to establish a foothold while the market is expanding with aim of creating a long term (10yrs+) commitment to outsourcing services (similar to India who is considered the leader at this time). - Why do it?– access to bigger markets, better margins. It was also noted that smaller local companies will benefit in two ways 1) they may be able to assist (subcontract to) the bigger organizations 2) there may be less competition / more opportunities in the local market (as the bigger players shift some of their focus offshore) - What are we selling? This wasn’t clear (other than we have better quality and are easy to talk to than some countries) - IMHO this pitch would have to be refined around the companies that initially attend the tradeshow to become a compelling message. - They have a very short timeframe to get organized however NZTE have committed marketing staff to preparation of collateral for the Tradeshow booth and have helped organized a speaker and speaking slot (Lord of the Rings themed) at the event. (The aim is to look very ‘calm and collected’ on top and be getting things setup furiously underneath) - The operating model they suggested was approximately 1/3 Onshore 2/3 Offshore where a company here would either setup an onshore subsidiary or partner with one to deliver the service. There was a diagram describing this (which was discussed at length) in the slides which I won’t reproduce here. - For those working for the US - they don’t see the UK market as the only option, just the first step in the strategy.
The Next Step: If you’re interested – they requested a commitment of around $2-3K to help get the initiative to the UK tradeshow (and to receive any benefits from that attendance). They are aiming for 20-30 companies to make it viable. Contact me and I’ll put you in touch with the Synergy people or use the website below.
Links: http://unlimited.net.nz/unlimited.nsf/NL/B5C5B1493D0D815FCC256E42006403CE
Regards, Pete Peter
Brown Nightside Test
Design Ltd. Phone
(+64) 3 338-0034
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