South Africans IT companies are benefiting from globalisation and will do so increasingly through creative marketing of existing skills, services and products. "While fears of the concept`s negative effects seem to be grabbing the headlines, those who understand the need for market growth and market share and the importance of business partnership, should embrace globalisation," says Richard Firth, CEO of Progress software development specialist MIP Holdings.
"The Internet-based new economy offers more opportunities than any negative effects the pessimists would like to emphasise. The beauty of the Internet is that nothing really changes, but a lot of things get easier," maintains Firth, who has just returned from Europe where MIP Holdings is discovering a huge market for its skills and products.
"For example, we are finding a huge call for our development skills and for our rapid application development tools (RAD)," says Firth. "We are finding that the Internet enables us to develop systems for overseas markets without having to move developers onto foreign soil. Apart from our development costs being very competitive, due to the exchange rate, we`re finding our strength as a development house an enormous differentiator.
"An overseas client approaching us to develop a system is not looking for a single developer with a specific skill, but for a team of people who will take on the project on a virtual turnkey basis and manage it through to the end," explains Firth. "There is a difference between the search for individual skills and the search for a product and service that a team or company can provide. As a company we are able to use our combined depth of knowledge, experience and expertise, to tailor deliverables that meet the requirements of our overseas clients. We do this using our existing skills and our own RAD tools."
Firth points out that the market is wide open for any South African company that has created products and services using effective methodologies and highly expert teams of service-oriented people. "South African development houses are very innovative and flexible - real advantages in the global arena," he says. "We`ve been quick to embrace new technologies and have built expertise in these fields. In the case of MIP, for example, we are using our RAD tools to deliver systems in the very short time the world markets need simply to exist today."
South African-developed software scores points over American systems in other ways. "Americans have no shortage of bandwidth, so systems there tend to be bandwidth heavy. In South Africa the fastest line speed is determined by the fastest modem. As a result we are forced to develop online systems that are light on bandwidth. The result is sleekness and simplicity that can run on any system anywhere in the world with very little tweaking. Because we are designing in a limited bandwidth environment, the Internet systems we piece together here, work anywhere in the world.
"Not only IT companies will benefit from globalisation, however," maintains Firth. "Anyone trying to find ways to create jobs should welcome the concept. The new economy favours virtually every kind of business, every type of employer and every type of employee," says Firth.
"Even small companies will benefit from the new economy," maintains Firth. "Big is not necessarily beautiful in the new scheme of things. For one, there will always be room for small companies since capitalism needs entrepreneurs to drive it and entrepreneurs find it hard to operate in large companies. The smaller teams and their ability to adjust to changes and find quick solutions for changes makes them essential players in any healthy economy.
"The pattern we all are familiar with of entrepreneurs building large companies then selling them on to start new companies will and must continue," says Firth. "Even if large companies learn to enable more creativity and entrepreneurship within their confines, there will always be a need for free activity outside of the conglomerate."
The emphasis placed on service delivery is another key factor that can benefit South African companies moving to play in the global arena. "South African consultants are well liked and win favour because they don`t take a know-it-all attitude when they enter into discussions with foreign client companies," says Firth. "Because of this we receive offers for business partnership we may not have received if we went in with an arrogant attitude."
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