Middle East Centre Director Mr Shaik Umar: You don't talk business until your host opens up that subject.

Venturing overseas requires commitment, and companies must be prepared to invest to establish their presence and build relationships. This is the advice that overseas centre directors from the Infocomm Development Authority of Singapore’s (IDA) have for entrepreneurs wishing to conquer overseas markets.

The centre directors were speaking at a recent IDA Global Market Forum on “Understanding International ICT Trends and Opportunities”, which was held on 13 February 2012. Their presentations were focused on India, China, the Middle East and the United States (US).

Commenting on the business environment in the Middle East, Mr Shaik Umar, IDA Centre Director for the region, said to be successful, companies must spend time to understand the culture and study the market before making their first move. “For example, when doing business in the Middle East, you don’t talk business until your host opens up that subject,” he said. While price is important, gaining the confidence of the key decision maker is more crucial, he added.

US Centre Director Mr Steven Tong: Singapore entrepreneurs can avail themselves of IDA's San Francisco's hot-desking facilities for a small fee.

Centre Director for the US, Mr Steven Tong, observed that companies planning to break into the US market must have products with a differentiating factor and a good track record with customers in Singapore or Asia. They must also do their homework and understand the laws governing taxation, which vary from state to state and repatriation of profits, Mr Tong noted.

The entrepreneurs must also be prepared to spend a significant amount of time in the US, he said. To save on costs, they can avail themselves of IDA’s San Francisco’s hot-desking facilities for a small fee. If the companies do not have a big budget to invest in a local head count, they can also outsource sales and support to an American company to represent them.

Doing business in India, however, is slightly different. The domestic IT industry is still growing at a brisk pace of 16 per cent and is expected to hit US$787 billion in 2011, of which the software and service segment is to the tune of US$25 billion, said Mr Sanjay RM, Centre Director of the Bangalore Office. Major government projects include Police Force Modernisation, e-District, and online identity (Aadhaar).

India Centre Director Mr Sanjay RM: You need to have a presence there, otherwise it is a case of "out of sight, out of mind".

To participate in the subcontinent’s domestic market, Singapore companies will have to partner large IT players such as Wipro Infotech, IBM India and Tata Consultancy Services which have tendered for and won major government projects, said Mr Sanjay.

“You need to go through the channels, the systems integrators and distributors. Your sales and alliance teams need to keep in close touch with these partners. You need to make sure your presence is there, otherwise it is a case of ‘out of sight, out of mind’. Doing it remotely from Singapore is not good enough,” he said.

Meanwhile, Centre Director for IDA China, Mr Lee Sze Chin, urged companies keen on venturing into China to consider investing in third- and fourth-tier Chinese cities. He pointed out that the competition in such cities would be less frenzied than in first-tier cities, where they would be competing against China’s A-team. “Scale matters, so you would rather be a big fish in a small pond than a small fish in a big pond.”

China Centre Director Mr Lee Sze Chin: You would rather be a big fish in a small pond than a small fish in a big pond.

Mr Lee stressed that China is urbanising fast and it is projected that by 2025, more than 70 per cent of Chinese will live in cities with populations of more than one million. He predicted that social media will take centre-stage, with a boom in microblogging, mobile Internet, E-commerce and “Chinnovation” – replicating business products or services which are successful elsewhere into China. The country will also jump onto hot new technologies such as cloud computing and smart cities.

China will continue to offer opportunities with the opening of the healthcare sector to foreign investment and service providers. Other new areas include rural banking in the financial sector, said Mr Lee.

Like Mr Sanjay, he also emphasised the importance of establishing a local presence in order to make inroads into the market. “You could be the favourite son, but to do so you must be there,” he said. “Remote control is a recipe for failure. You need PRC- Patience, Relationship and Commitment.”

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