Pacific Islands

pacific islands

Pacific Islands: Not too remote for GlobalServe.

The term Pacific Island refers to the small islands scattered over the Pacific Ocean covering over 15 percent of the Earth’s surface. There are three major groups the islands are classified into namely: Polynesia, Melanesia and Micronesia according to their geographical characteristics.

These groups of islands are home to over 3.4 Million people. Fiji, the largest among this group boasts population of around 880,000, Followed by Tuvalu with an estimated population of 9,876.

The islands with habitable environments became the center of attention for the earlier settlers in the 2nd millennium. European settlers lead to magnificent cultural, economic, demographic transformations of these islands in early 16th century.

The post-independence era of these islands has witnessed substantial socio-economic progress. Pushing the size limit and the distance to the major economies of the world poses a real challenge to the economic development.

These islands are bestowed with mineral wealth which constitutes 80% of their exports.

To keep up with the pace of global economic trends, the regions has seen a shift in economic direction towards  the ICT based industry; mobile applications developments and software services look promising for the development of this region.

GlobalServe and its role

A host of MNCs have started establishing their operations in these regions. The natural resources of the region mainly the mining based industry has created a demand for the IT based goods and services.

GlobalServe has established strong network partnerships with local IT resellers and service provider ranging from procurement, deployment and to maintenance to serve the needs of clients.

The mainland of Australia along with some of the big islands like Papua New Guinea is being used as distribution and servicing hubs with the capability of dispatching the technical resources to the remote locations in the event of the unavailability of local resources.

Below is the list of islands which are being successfully looked after by GlobalServe and its partners:

  1. Solomon Islands     
  2. Nauru    
  3. New Caledonia    
  4. Tonga     
  5. Federated States of Micronesia    
  6. Papua New Guinea     
  7. Vanuatu     
  8. Kiribati    
  9. Samoa
  10. Guam

Because of the versatile needs of the customer GlobalServe has already established a pool of accredited OEM partners in its supply chain. These OEMs include CISCO, Riverbed, Blue Coat, HP, Dell, Lenovo and IBM.

Conclusion

GlobalServe is well aware of the challenges and the requirement of its clients and will continue to seek solutions and resources along with its network of partners to be better able to support its esteemed clients. The untapped potential and the growing presence of MNCs on these islands are creating a huge market for international investors to establish I.T. related businesses in the islands.

GlobalServe International IT Procurement

GlobalServe showcases a patented web portal for global customers who are looking to procure IT hardware, software and services internationally, in multiple countries across the globe. We leverage our network of over 500 premier resellers and 25,000 service professionals to deliver IT assets and bill in-country, in 174 countries. Our solution saves global customers money through tax advantages and in country delivery charges, as well as saving their time by taking on the administrative burden of working with re-sellers to ensure timely delivery of product. We offer one central point of contact, one global standard, for all of our client’s IT needs across the globe, no matter how many countries they have a presence in, for all major OEMs. Founded in 2000, to date we have delivered on over one billion dollars worth of equipment. We provide up to 15% savings on international orders for laptops, desktops, tablets, servers, and network equipment.

Argentina

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Argentina is the second largest country in the Southern American continent and the 8th largest territory in the world.

It is no surprise that the sports industry is the major fuel for Argentina’s economy. Football is the major sport which keeps Argentina always in the spotlight. Due to football and other sports being high paced and globally recognized,  Argentina has created huge industries like media / press marketing, advertisement and commercial sales. All of these industries are based on Argentina’s I.T infrastructure.

Argentina is also among the founding member of International organizations like the UN, WTO etc. The population count as per the last census stands at 41.45 Million.

Argentina’s developing I.T. industry

As the local technology industry of Argentina is one of the most vibrant and active in the region because of local entrepreneurs stepping into the Technopreneurship arena. In addition, the public and private sector is focused on the automation and the upgrading of their existing infrastructure in line with new modern ICT trends such as cloud, mobile based apps etc.

With a view of tapping into the rise in the demand and potential opportunities on the technology front, major OEMs like HP are stepping up their presence by establishing local manufacturing facilities.

HP has built a local assembly facility to not only grow their reach in the region but also to counter the regularized trade. There are strict trade rules that hamper the import of finished product into the country through barriers such as reciprocal policy which entails that supplier/importers should wait for the issuance of permit before being able to import components or goods. This troubling policy is in place to artificially control the trade imbalances and foreign exchange reserves with trading partners.

The net side effect of this and other such trade policies have severe implications on supply chain which results in relatively long ETA in the region and uncertainty with the end user, ultimately impacting the project timelines.

GlobalServe and its understanding of Argentina

Bestowed with blessing of natural resources; vast arable land, minerals and highly literate and skilled population Argentina’s economy can be fairly classed as one of the regions’ biggest economy. The economic scale is in line with the key global economic players like India, Brazil and Russia.

However Argentina’s economy has suffered major blows such as recession, disparity in income distribution and rising poverty. Nevertheless, the country is touted for its improved rating on Human Development index lately and burgeoning high tech sector which holds promises of prosperity and solution to the country’s economic woes.

GlobalServe has been growing its footprint in this promising country with forging partnership with GSPs and service providers to be able to help its clientele by growing operations in Argentina.

With the help of our partners and vast insight of this region’s custom policy, Globalserve has been able to devise eradicative measure for clients such as the demand forecast model to base the ordering frequency and volume and stocking option to cut down the long ETA. In short, GlobalServe sees it role in their region not only confined to IT lifecycle management but more towards a solution provider.

GlobalServe International IT Procurement

GlobalServe showcases a patented web portal for global customers who are looking to procure IT hardware, software and services internationally, in multiple countries across the globe. We leverage our network of over 500 premier resellers and 25,000 service professionals to deliver IT assets and bill in-country, in 174 countries. Our solution saves global customers money through tax advantages and in country delivery charges, as well as saving their time by taking on the administrative burden of working with re-sellers to ensure timely delivery of product. We offer one central point of contact, one global standard, for all of our client’s IT needs across the globe, no matter how many countries they have a presence in, for all major OEMs. Founded in 2000, to date we have delivered on over one billion dollars worth of equipment. We provide up to 15% savings on international orders for laptops, desktops, tablets, servers, and network equipment.

China

1 chinaThe People’s Republic of China comprises about a third of the world’s total population and is also the world’s third largest county by area. It is among the few remaining Socialist states in the world.

The country is divided into 33 administrative units; comprises of 22 provinces, 5 autonomous regions, 4 municipalities (ChongqingBeijingShanghai, and Tianjin), and 2 special administrative regions (Hong Kong and Macau). The island province of Taiwan, which has been under separate administration since 1949.

China is poised to become the next economic super power owing to its increasing influence in global markets, fast economic growth fueled by technology and manufacturing industry, as well as massive pools of capital. Virtually all major OEMs have chosen China as their regional manufacturing hub on account of the cheap labor and the special support that the Chinese government provides via subsidized land and energy reserved for establishing industrial parks.

GlobalServe has extensive experience of serving its wide range of clientele in the domain of supply chain procurement, servicing and consultancy in China.

GlobalSserve has forged comprehensive alliances and partnerships with key Chinese IT suppliers and service providers to ensure one-window solutions for multinationals operating in this region. Since the country is often host to manufacturing sites of the global corporate giants; delivery time frames are short; normally 2 to 3 days across the country thanks to the well-developed transport and logistics infrastructure.

To facilitate the volume of exports, there are 52 ports in China across 13 major cities. China is home to the busiest container ports in the world.

Facts and Figures
– Due to ‘ASEAN Free Trade Area (AFTA)’ agreement by ‘Association of Southeast Asian Nations’, Trade Block Uplift and Duties is charged at five percent.

– Local taxes are charged at 17 percent on each order.

– Average hardware lead time is 15 days as per the year 2013-2014 GlobalServe annual report.

– Forward exchange rates are applied on monthly and quarterly basis, (provided by OEMs).

Chinese Trade Port Cities

Fujian Liaoning
Guangdong Macau
Hainan Shandong
Hebei Shanghai
Hong Kong Guangdong
Jiangsu Tianjin
Zhejiang

Ports in China

Port of Quanzhou Rocky Harbour (Hong Kong)
Port of Xiamen Port Shelter
Port of Guangzhou Starling Inlet
Port of Zhanjiang Tai Tam Harbour
Shunde Port Three Fathoms Cove
Rongqi Port Tolo Harbour
Haikou New Port Tsing Yi Tong
Haikou Xiuying Port Victoria Harbour
Macun Port Port of Suzhou
Port of Yangpu Changshu Xinghua Port
Qinhuangdao Port Port of Dalian
Aberdeen, Hong Kong Port of Jinzhou
Container Terminal 9 Port of Yingkou
Crooked Harbour Kai Ho Port
Double Haven Macau Container Port
Gin Drinkers Bay Port of Weihai
Hongkong International Terminals Ltd. Port of Yantai
Hebe Haven Qingdao Port
Holt’s Wharf Qingdao Qianwan Container Terminal
Inner Port Shelter Port of Shanghai
Kwai Tsing Container Terminals Yangshan Port
Long Harbour (Hong Kong) Port of Shenzhen
Modern Terminals Limited Guangzhou
Mun Tsai Tong Port of Tianjin
Port of Hong Kong Beilun District
River Trade Terminal Port of Ningbo

Business Volume – GlobalServe’s largest Operating Country

Almost 80 percent of GlobalServe customers have offices and warehouses in China which makes her the busiest operating country in the GlobalServe 174 country delivery footprint.

Legal constraints related to USD currency

Thanks to its export prowess; China has garnered the world’s largest highest tally of foreign exchange reserves. This ever-increasing total had reached 3.44 trillion USD, as of May 2013; equal in value to Germany’s annual national income.

Opportunities are often shrouded by challenges. The major constraint faced by business entities with operation in China, are restrictions on outbound transactions based in United States Dollars (USD).

Go Global Solution / Go Out Policy

China has taken a lesson from the rise of the Asian Tigers including South Korea, Japan and Taiwan. The country’s largest business conglomerates have invested heavily into acquiring the world’s leading brands such as electronics brand TCL. This is “go out” or “go global” strategy adopted by China has emanated from the country’s plentiful reserves of foreign currencies.

TCL bought the European brand “France’s Thomas” and increased its foot print massively like other international brands, i.e. Samsung (S. Korea), HTC (Taiwan) and Sony (Japan).

GlobalServe Support for Multinationals Operating in China is Comprehensive

GlobalServe Chinese operations are well established and we continue to capitalize on its biggest strength of strong and growing revenue stream. One prominent factor is that GlobalServe can select the very best of the best I.T partners with variety of dynamics to cater to all kinds of customer needs.

In view of the ever-increasing role of China in global manufacturing, China is an integral and often dominant factor in supply chain strategy.

GlobalServe International IT Procurement

GlobalServe clients save 15% on their international IT procurement of laptops, desktops, tablets, servers, network equipment, point of sale terminals and cameras and av/teco equipment.

GlobalServe’s 174 country network of 494 contracted, OEM-authorized reseller-service providers delivers      in-country equipment for a maximum 5% markup vs. the 15% – 25% typically charged.  These top resellers do this to participate in GlobalServe’s substantial business flow.  GlobalServe manages the entire process for a 3% markup.  The net savings for our customers average 15% – without having to change OEM vendors.

Even the largest companies can save 15%. One of our clients has over $300 billion in revenues, many are $1 billion and up, but companies who purchase as few as 10 laptops internationally a year can benefit.

Beyond Saving 15% – GlobalServe improves your supply chain SLA performance.

GlobalServe simplifies your global IT procurement supply chain to make it better and faster, as well as cheaper.  We create a customized portal for just the hardware you want to offer and provide easy to use, secure access for your employees.  They can price – in any currency – and order any of your approved gear for delivery in literally any country in the world.

The GlobalServe system automatically calculates currencies, taxes and other charges.  We keep your portal up to date on an ongoing basis, eliminating orders for out-of-date equipment.  You get robust reporting on every asset from every manufacturer in every location.  You capture maximum discounts and automatically track transactions for VAT and other taxes.  You can even customize GlobalServe with SLA parameters that are tuned to your organization’s needs.

Once an order is placed, GlobalServe’s best-in-world supply chain services carefully guide the order to deployment.  Our system proactively monitors orders and alerts our 24/7/365 Service Operations Group when a risk arises that could breach an SLA.  We take the necessary proactive steps to get the equipment onsite to meet the SLA.  When necessary, we have even procured equipment from another country and GlobalServe covered the required import fees and taxes – all to meet the SLA.  All to keep your supply chain running smoothly.

You can actually reduce expenses while improving the SLA performance for your international orders.  Our customers tell us that beyond the direct 15% savings, they appreciate the savings they generate from the efficiency of the GlobalServe process – they waste fewer human resource cycles chasing problematic international orders and multiple vendors.  They can keep the costs to administer the supply chain to the barest minimum through simplification with Globalserve, while upgrading the IT procurement reliability for their organization.

Additional Vendors Can Be Supported by GlobalServe upon your Request.

You can save 15% on international orders for hardware and software.

India

globalserve india cover 5

INDIA: Emerging Market IT Giant

The second biggest technological market of Asia and home to the largest IT industry of South Asia, India has all the potential and resources to be in the race with China in software development, hardware chipset software development, web development, mobile application development and more.india 100

India’s technological expense as a percentage of its GDP is less than one percent as compared to the global average of 2.5 percent. This intensive use of technology is boosting labor productivity. Per-capital labor productivity was $9,310 in 2011 compared to $69,900 in UK and $96,000 in US.

Supply Chain Considerations

The Indian government has reformed the taxation system and restructured the entire country per industry; per state etc.

The new structure determines tax collection at three levels: Central, State and Local council.

Central Government is responsible for Income Tax, Custom Duties, Central Excise and Service taxes. Whereas the State and Local Council serves as the tax collection authority for Stamp Duty, State Excise, Land Revenue, Property Taxes etc.

As per the Local Council taxation policy, the rate of taxes varies from state to state which impacts the end cost for IT Equipment.

GlobalServe in India

For the past eight years GlobalServe has served a versatile range of customers in IT hardware procurement, IT services and asset disposal management.

With their customized portals, GlobalServe customers can quickly and easily final purchase cost including in-country Trade Block Uplifts (Importation and Custom duty costs), Currency exchange rates, OEM selling price, Distributor margins, Reseller margins and GlobalServe service commission fee

GlobalServe is serving several clients in the entire landscape of India through a wide range of suppliers having all major accreditations of mainstream computing brands and networking. Moreover, IT Asset Disposal business has proved to be very successful in India due to access to the largest disposal company as a GS partner.

India Technology Background

Major IT industry players are:

  • Mphasis: Launching a modern ATM security, e-Surveillance and Power Efficiency Solution ‘ProTecht’ with Delta Power Solutions.

 

  • Wipro: Contracted US$ 1.2 billion BPO clients from Canadian utilities major ATCO I-Tek.

 

  • Tata Communications: Estimated investment of US$ 200 million to increase data centre capacity.

 

  • Apax Partners: Purchased 1.5 percent market share stake worth US$ 9.56 million in software products and services provider Persistent Systems.

 

  • L&T Technology Services: Purchased 74 percent equity of Thales Software India Pvt Ltd.

Estimated IT growth of India by 2015 is 1.8 trillion Indian Rupees which indicates that the requirement of cutting egde hardware, extensive data servers and modern technological infrastructure.  Despite the huge scale of hardware & software development, the second biggest market Business Process Outsourcing.

 

 

RUSSIA

  • Increasing Role as Regional Hub with Local Manufacturing
  • No Significant IT Equipment Supply Chain Impact from Ukraine Situation

IT Distribution and Challenges

All resellers operating in the IT industry within Russia have to operate through a domestic distributor, to get their orders processed with Original Equipment Manufacturers (OEMs). In this context, Russia is an indirect country where only a small number of distributors dominate the entire IT supply chain.

Working with the right distributor will ensure timely order processing and deliveries

Under any contractual services, hardware purchases or disposition, any Russian supplier will have to sign a local Russian contract with the end customer, as per law. The terms of the Russian contract depend on the “Credit Ratings” of the end customer.

All contracts issued by any international entity must be translated into Russian language and the local Russian contract for the end customer has to be designed in parallel.

Any “Walk-in” customer wanting to purchase any service or hardware over a certain price must also sign the Russian local contract.

Local suppliers of technology products are impacted by the volatility in the currency exchange rate which can in turn affect companies attempting to source goods across the borders.  GlobalServe facilitates fixed rates on monthly, at times quarterly basis to ensure smooth ordering and invoicing to clients.

 

Doing Business in Russia

The Russian Federation emerged from the former Union of Soviet Socialist Republics an independent state and still the world’s largest country by area. Modern day Russia spans over an eighth of the Earth’s total land area and nine times zones from North Asia to Eastern Europe and the North Pacific in the West.

After a decade of political instability and economic woes as a result of post-Soviet crisis Russia is now well on course to become a major economic power.

The country’s geo-political importance assumes center stage in global diplomacy not least due to its proximity and access to vast natural resources including natural gas and oil.

It is home to the world’s largest state-run natural gas extractor, Gazprom catering a large chunk of the European Union‘s energy needs. The Kremlin thus enjoys a position of strength economically and diplomatically. Efforts to emerge a global IT powerhouse are part of that country’s vision of diversified global trade.

In over a decade of working with multinational corporations, GlobalServe has garnered intimate knowledge about Russia’s IT infrastructure; its management and support services. Working with local partners has provided valuable insights regarding the regulatory environment and other factors affecting the IT industry in that country.

 

Working with the right distributor will ensure timely deliveries and order processing

GlobalServe has successfully engaged the biggest distributors in country, to ensure the best prices and deals for clients. As there are only a few distributors managing IT sourcing in Russia, visibility on distribution margins is minimal. However our clients have benefited from monthly pricing exercises, enjoying the benefits of locking in their margins over four-week periods.

Encouraged by the government’s efforts to promote the domestic IT industry, some product manufacturers have already set up regional manufacturing hubs in this country. The direct net effect has been positive on supply chain of these products along with competitive pricing for local users.

The overall technology landscape in Russia is positive and offers numerous opportunities which outnumber the challenges. In coming years, existing corporations and other new comers will invest, expand and develop their IT resources
in Russia. GlobalServe along with its partners will be there to help accomplish their vision.

 

ALGERIA

Complex & Challenging IT Supply Chain

 

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The IT supply chain in this resource rich country is still nascent. Virtually no major IT OEM has any manufacturing base or direct presence. Instead, all such entities currently serve their client base in the country through local networks of resellers and distributors. All major OEMs are catering the domestic Algerian market for IT products through their distribution hubs located in mainland Europe, mostly in France and Germany.

 

There are quite a few challenges associated with the IT supply chain in Algeria. Most mention-worthy is the highly regulated trade along with extremely complex bureaucratic involvement at various stages of import.

 

As highlighted in the flowchart below, extremely complex regulations have a major impact on delivery lead times. On average, the clearance of a consignment may take 180-200 days. This poses challenges for users in planning project timelines and operations as well as for suppliers and distributors in ensuring timely delivery.

algeria box 2

Global Serve has been actively working with its suppliers on a wide range of solutions to ensure smooth running of IT operations for our clients. Forecasting, demand planning, staging orders and stocking options are some of the alternatives that help our clients cut lead times.

 

Several   IT equipment OEMs and   major   IT companies are considering  Algeria  as  having significant  potential for System Integration and IT hardware distribution. Based on this interest, some of GlobalServe’s partners in the region have started to expand their presence in Algeria.

 

Algeria is a daunting country when it comes to international procurement, especially in the case of encrypted products.

 

Doing Business in Algeria

The Islamic Democratic Republic of Algeria is the largest country in Africa in terms of land area. A vast expanse of the country, roughly 85 percent, is home to the Great Sahara Desert, one of the most desolate expanses in the world. The country’s proximity to the European peninsula adds to its geo-strategic importance in regional and global contexts.

 

Historically, the Algerian economy has remained under strict state control. Unlike the global trend towards de-regulation, trade regulations in Algeria have grown more stringent in recent years. Government policies have kept foreign investments at bay and state owned entities are closely guarded against any privatization efforts.

 

The country boasts the world’s tenth largest gas reserves as well as the sixteenth largest oil reserves. So it is little wonder that the hydrocarbon industry is the leading contributor to the country’s national income and exports.

 

 

The general business environment in the country is daunting for foreign and domestic enterprises. Algeria ranks at a dismal 152 out 185 countries in the Ease of Doing Business Index prepared by the World Bank Group.

 

Despite the challenging business environment, GlobalServe believes that Algeria is a promising market with immense potential for automation and technological advancements. Multinationals operating in the country as well as domestic firms are keen to adopt state-of-the-art IT infrastructures.

INDONESIA

Indonesian Supply Chain is 6-8 Weeks via Singapore & China

IT Supply Chain for Indonesia
Currently, most of the major IT original equipment manufacturers (OEMs) have their main production hub in China, while Singapore is the main distribution hub for Asia.

indonesia box 1

The average lead time of an order from the order date to the delivery date is 6-8 weeks.  There are multiple challenges for global standard procurement in Indonesia – complex multi-step distribution channels, variable additional costs and fluctuating exchange rates.

Indonesia box 2

As the OEM production is based in China and the country of origin for the distribution center is in Singapore, the multi-step shipments face multiple trade processes which incur additional costs and drive up delivery times.

Variable costs added to the product cost include trade bloc, local duties, custom clearance charges and local taxes.  In Indonesia, these additional costs may vary by product category, so they cannot be pre-assumed.

Managing the volatile exchange rates for the Indonesian Rupiah is important for cost management.  Indonesian spot rates mean that an order processed today cannot be delivered after 30 days based on today’s exchange rate.  One approach suggested by GlobalServe: Indonesian orders can be placed in US dollars and invoiced in Indonesian Rupiah using the exchange rate on the invoice date.  This approach can often help manage currency volatility.

 

Doing Business in Indonesia

‘Wonderful Indonesia’ is not just a tag line to attract tourists. The country is the biggest economy in Southeast Asia and it has achieved impressive and consistent economic growth for more than a decade.

Gross national income per capita has grown from $2,200 to $3,563 in 12 years from 2000 to 2012. Indonesia has also managed to bring down its debt-to-GDP ratio from 61 percent to 24 percent in the past nine years.

The Indonesian government has adopted a long-term development plan that aims to improve human resources quality, science and technology development, and strengthening the competitiveness of economic development, over 20 years.[1]

As Indonesia is the biggest economy in the region and is growing rapidly, it presents an attractive business environment. Investment opportunities are increasing and it still holds significant potential for investors seeking opportunities, including in the IT industry.

Many multinational corporations have established presence and are conducting operations in this country.  These firms have managed to centralize and standardize operations in the region with the use of advanced technologies and infrastructures.  Value Chain Management is a key enabler for companies that want to operate across international borders seamlessly.

GlobalServe provides multinationals operating in Indonesia with a single point of control and a single platform solution for IT supply chain and procurement needs.  With GlobalServe, the procurement function of each company can easily track every order placed for IT equipment, while maintaining global procurement standards.  GlobalServe’s local knowledge and relationships assure that the supply chain turnaround times are the absolute minimum possible for the market.

[1] http://www.worldbank.org/en/country/indonesia/overview