Siveco earmarks world expansion targets

International expansion. This tends to become the motto of the domestic software companies nowadays. Let’s review some of the recent examples in this regard: Softwin opened an office in Spain after those in France and Germany, set to also co-ordinate sales in Portugal.

TotalSoft in its turn has managed to establish a branch in Washington DC. WizRom added Turkey and Bulgaria to the foreign markets it was operating on, i.e. Slovakia and the Republic of Moldova, and even gave Ukraine a try.  This appetite for opening offices abroad is not necessarily a matter of vanity, but an attempt to make the most of the increasing international demand for IT solutions and services supplied by countries with high creative capabilities but also low salaries and costs.

The trend will maintain. IDC research company, for instance, says that the IT outsourcing contracts the “inexpensive” countries will get will go up by 400% over the next three years.

Another company announced its international expansion plans last week. It is about Siveco Romania, one of the main producers and distributors of business management solutions. “Siveco Romania accounts for most of the export of software from Romania to European Union countries and to the US,” general manager Irina Socol said. Software and services exports make up for nearly half of the company’s turnover, set to reach $14.8 million this year, $2 million more than initially anticipated and $6.2 million more than in 2002. The growth will maintain through next year, when turnover is supposed to reach $16.4 million, the company management estimates.

Besides the contracts signed with major Romanian clients, such as Petrobrazi, CFR, Transelectrica, Bucharest City Hall or Petrom, Siveco’s revenue growth therefore relies on the international expansion plans for 2004. The markets Siveco is contemplating for a possible entry or business expansion next year make up a long list and include countries like the UK, Scandinavia, Greece, Turkey, Russia, Israel and China.

victor@zf.ro