People Input :: African integrator in new technologies

In the 1990's the word relocation was frowned upon by Western firms. American corporations who settled in India to established development centers were somehow considered contemptible. Nowadays, with the mounting economic crisis, IT project relocation is becoming more and more popular. A great number of French and European corporations have development teams in Rumania, Morocco and India. The development of new trades has also been a boosting factor for the relocation movement. "Call centers" have enabled over one hundred corporations throughout the world to relocate customer relations management.

In such a situation it is easy to understand the great enthusiasm of African corporations trying to get into the profitable niche. There has been a number of successful initiatives in Senegal, for example two relocated Call Centers: PCCI (specialized in the French market) and Call me (local and West African market).

However, relocation is not simply a transfer of expertise whose main objective is cost saving. While the attraction of profit is an important factor of decision-making, it is, in the last analysis, only one element in a litany of strategic criteria.

What are the elements to be taken into account for a good relocation operation ?

To answer this question, one must first analyze the existing types of relocation :

The service relocation : Ex: Call Centers. This is based on providing the same service as the one inside the corporation (customer relations management), but at a lower cost for the same quality

Project relocation : this type of relocation is much more about IT or other industries. One of its main objectives is to develop innovative solutions or concepts in "offshore laboratories", where workers' skills is the main element and cost only secondary, though important.

From the foreign investor's perspective, key-elements for good relocation are:

The political environment : this is important for all investors, but more so for relocation projects, because political stability is essential. Customers are abroad and will be all the more demanding concerning the quality of service as they often do not even realize this service is "relocated".
The economic and fiscal environment : tax treatment is also an important element. With the first successful relocation experiences in Europe, Ireland quickly understood how profitable it would be to lower taxes in order to promote foreign investment.
Labor cost : and above all, the flexibility of labor laws which makes it possible to follow elasticity of demand.
Communication environment : easy and good communication is an indispensable pre-requisite. Countries with a good telecom network are way ahead of others.
The quality of human resources : apart from the individual value of people, the educational system is the keystone of good performance. It is important for an investor to be able to compare qualifications and diplomas.
Cultural attraction : all the factors that cannot be put in a specific class, such as language skills, tolerance, the ability to understand what is at stake in relocation, the climate, social environment, etc.

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The above mentioned is not a comprehensive review but can be considered as a basis for the investor who is thinking of choosing a country for relocation.

What strategy should be adopted by a local company who wants to relocate an IT service or project for a Western corporation ?

There is no turnkey recipe for successful project relocation. However, sticking to the following points seems essential to succeed in this undertaking:

A good command of one's basic trade : it is dangerous to position oneself solely on relocation as a market opportunity. Relocation is still more demanding than straight local customers. This is even more so with project relocation. So, beware, challengers who want to start activities solely based on financial attraction.
Clear-cut and well-structured procedures, comparable and standard methodological tools : the client must imperatively have some visibility on capacities and skills required to implement his/her project. Beyond (very important) references, it is important to give reassurances concerning work organization. Depending on our trades, it is important to have reference certifications (ISO, standards …).

Beyond these simple recommendations, successful relocation according to the examples analyzed, is based on a continuous search for the quality of service. Senegalese and African companies should look into successful experiences in Morocco and elsewhere so as to learn and reflect upon these concepts.

At a time when everybody is trying to interpret globalization according to how he/she understands what is at stake, African companies have to opt for acting in a pragmatic way. Let us be strong enough to look at the rest of the world as a huge market where we can bring intellectual added value. Another interesting thing about "modern times" relocation is the originality of the suggest models. Added-value must be created for actions to be everlasting.


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