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Author: Cornelia Wels-Maug
22 November 2006
Berlin-based software house PSI initiated the accreditation process for a subsidiary in Moscow to promote sales and partner support in Russia. This news only follows days after the announcement of a partnership with Russian ITK Group.
Comment: PSI is further advancing its internationalization strategy. After establishing two subsidiaries in China and one in Poland last year (see EuroviewDaily 3 November), the latest move enables PSI to get a better foothold into the Russian market. It is a promising market for PSI, since Russia's traditionally biggest verticals, oil and gas, represent PSI's core verticals. In addition, PSI plans to sell systems for the management of electric power, logistics and steel production in Russia.
It will take up to one month only, from the initiating of the accreditation until the actual opening of the office, which will initially only be a sales subsidiary. However, the offering of IT services might come at a later stage.
Setting up its own site is not enough to do business in Russia, where well-established, long-standing contacts are a must. Even global players testify to this feature of the Russian market. IBM claims to have a greater reliance on its partners in Russia than in any other European country, HP acknowledges that it works more closely with Russian vendors than in other markets. Even Dell distributed its products exclusively via IBS Group (one of the top Russian IT services companies) for eight years prior to opening an office in Russia in 2002.
Therefore, it is hardly surprising that PSI has forged several strategic sales and service partnerships including SDC, National Logistics Company (NLC), Novintech and ITK Group, all addressing different vertical market segments and taking into account PSI's diverse portfolio. Currently, PSI's business in Russia runs at around €4 million and includes such prominent clients as Gazprom and Lukoil. PSI aims to double its revenues in Russia by 2008 and looks set to achieve this.
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