NetGain Systems is a local infocomm solutions company that has started to look to overseas markets for growth opportunities. iN.SG caught up with NetGain's CEO Mr Toh Soon Seah on how made-by-Singapore' infocomm products are perceived by overseas buyers. He also shares his views on what more can be done to raise awareness of locally developed infocomm solutions.
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NetGain Systems' CEO Mr Toh Soon Seah believes that "made-by-Singapore" infocomm solutions are gaining wider acceptance
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Q: Can you tell us about your venture into overseas markets?
Soon Seah:
NetGain Systems was founded in 2002 and ventured into the China market in 2003. We have collaborated with numerous local partners to deliver effective IT monitoring solutions to end-customers in China. To date, the Chinese market is our biggest and also the key contributor to our annual revenue.
Going forward in 2007, besides its existing markets in Singapore, China and the South-East Asia, NetGain intends to penetrate more developed countries in Asia and Oceania such as Japan, Korea, Taiwan, India and Australia, where the addressable markets are huge for NetGain's products. We are also planning to penetrate the US market by 2008.
Q: Prior to the help provided from IDA, what was it like trying to reach into new markets?
Soon Seah:
Working with local partners to enter new markets has and always been a key strategy for NetGain Systems. Although this is usually a tougher and longer journey versus direct selling, it is more sustainable in the long run. Prior to IDA's help, NetGain Systems depended solely on its own channel sales force to convince and develop channel partners to resell NetGain's products. In addition, as a young start-up company, NetGain Systems lacks branding and marketing muscles so, while there was progress, it was not as satisfactory as we hoped it would be.
Q: What help have you received so far? How has it helped you?
Soon Seah:
NetGain Systems was assisted by the Economic Development Board (EDB) Capital in its initial seeding stage. Besides capital funding, EDB helped in NetGain's growth particularly in the areas of marketing, corporate governing guidance and introduction of NetGain solutions to partners in local markets. In fact, NetGain was introduced to IDA through our EDB investors.
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Mr Toh Soon Seah feels that industry assistance initiatives provided by Singapore's government agencies like the EDB and IDA helped his company make progress in overseas markets
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Since then, NetGain has been working closely with IDA's Industry Development Group on several key initiatives. In particular, NetGain joined IDA's Overseas Development Programme (ODP) to become an official IDA-Sun ODP partner. NetGain Systems' China sales team worked closely with the IDA ODP Manager for China, Mr Joshua Wang, after the partnership was setup.
To date, NetGain has benefited much. Revenues generated through ODP have contributed close to 50% of revenue in China to date. Sales leads in the pipeline have also doubled. In 2007, NetGain Systems is looking to set up a US-based representative office by end of the year and to explore partnership opportunities with other MNCs, through IDA's facilitation.
Q: Are markets more receptive to Singapore-produced infocomm solutions?
Soon Seah:
In general, we think that markets are getting more receptive about "made-by-Singapore" infocomm solutions, especially with the excellent pool of infocomm knowledge workers available. End-customers in China, Malaysia and Indonesia recognise, appreciate and trust the Singaporean brand more than their own local vendors. Despite being a young company, the fact that NetGain Systems has its R&D centre based in Singapore, as well as our affiliation to recognised organisations such as the EDB and IDA, definitely helped us in pushing out the Singapore brand.
Q: In what ways can more be done to help Singapore companies expand overseas?
Soon Seah:
It would be of additional help if IDA can set up and strengthen its presence in more overseas countries to help local companies venture abroad. Singapore is well known for its excellent e-Government services and knowledge. This strength should be built on to foster closer relationships and knowledge sharing with other countries and government bodies. This can then be used as a vehicle for local companies to penetrate the lucrative public sector markets in other countries.
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