11.10.2007 |

S&T seeks to expand its business in Asia

Creation of new subsidiaries and cooperations to be stepped up

11th October 2007. The S&T Group, leading IT service provider in Central and Eastern Europe, plans to expand both its business in Asia and its business with Asian companies in Europe. The existing subsidiaries in Japan and China will be expanded and projects realised in other Asian countries within the framework of cooperations. This means that Asia, along with Central and Eastern Europe, could become a geographically significant area of focus for S&T.
Subsidiary from S&T subsidiary IMG in Tokyo, Japan; Copyright: S&T/IMG
In the Spring of 2007, S&T took over international SAP Consultancy IMG (The Information Management Group), which along with its European locations also brought subsidiaries in the USA, Japan and China into the S&T Group. Whilst the American subsidiary was sold again in September, S&T is looking to increase its presence and thereby extend its future business operations in Asia. In order to achieve this, firstly existing subsidiaries will be expanded – only last week S&T announced the deployment of a new team for Application Management Services in Shanghai – and secondly the opening of new subsidiaries is being contemplated. Furthermore, in addition to existing cooperations such as those with NTT Com and Supply Chain Consulting in Southeast Asia, S&T is planning to enter into new partnerships with strategic players in order to be able to provide customer support in the entire Asia region and at the same time support them with their expansion into Europe. ”The Asian IT market is set to continue to grow at a tremendous pace in the next few years. The amount spent by Asian companies on IT consulting and IT services is steadily increasing. We want to use this growth trend to our advantage and are therefore deliberately focussing our strategic and operational expansion on Japan and China. We have effective teams on site, with whom we have drawn up detailed plans for the further development of S&T in Asia, and now we intend to put those plans into practice“, explains Christian Rosner, CEO of S&T.

S&T in China

In China, S&T currently has three subsidiaries (in Shanghai, Guangzhou, and Beijing) with approx. 30 employees. The first subsidiary in China was opened in 2005. In addition to SAP consulting and implementation services, the company offers system integration and the supervision of SAP applications (Application Management Services) together with the implementation of roll-in and roll-out projects. In China, S&T supervises companies such as Atotech (also Atotech Korea and Taiwan) as well as subsidiaries of European Groups such as Andritz, the Austrian plant engineering group, for which a new ERP system in China was also put in place.

China’s IT market expected to more than double by 2009

China affords tremendous market opportunities. The entire Chinese economy will achieve a growth rate of 10% in 2007 according to experts. With a volume of business amounting to 54 billion Euros, the Chinese IT market will by 2009 already be the third largest in the world. In 2007, the IT market is already expected to be worth 25 billion Euros – by 2009, the market will have therefore more than doubled. IT is adopting an increasingly significant role in the development of China’s economic strength. A large number of Chinese companies are about to become international and are therefore faced with the challenge of adapting to international standards in order firstly to attract foreign investment and secondly to expand into areas such as Eastern Europe. Rosner continues: “To give you a few facts: Only about 5% of Chinese companies already have an ERP system. Around half of them would like to invest in new foreign markets in order to extend their own business. Annually more than three million graduate from Chinese universities. The business potential in China is tremendous. The country has highly qualified specialists at its disposal and those who, like us, have the trust of clients in China, as well as that of clients who are expanding from Europe into China, will be in the right position to reap the benefits of the future.“

S&T in Japan

S&T subsidiary IMG has been active in Japan since 1998. Currently, approx. 133 employees in four subsidiaries (Tokyo, Osaka, Nagoya and Fukuoka) are responsible for looking after clients throughout the whole of Japan, above all in the fields of SAP consulting and implementation, together with international roll-in/roll-out projects and IT consulting. Clients include highly respected companies from the technology industry, from mechanical engineering and plant engineering such as Atotech Japan, Bruker AXS, NSG Vetrotex, Nagase Chemtex, Nichigo-Morton, Tyco Electronics AMP, Klingelnberg and NEC Schott.

Japan’s IT services market experiencing double-digit growth

According to estimates from IDC, the volume of business in the Japanese IT market will reach a figure of approx. 73 billion Euros in 2007, and by 2010 it will already be just short of 80 billion Euros (growth rate 2007-2010: 9%). The IT services market will amount to approx. 30 billion Euros in 2007, reaching 37 billion Euros by 2010, thus demonstrating a considerably faster growth rate than the IT market overall (growth rate 2007-2010: 23%).

Cooperation with NTT Communications is working well / further partnerships planned

In addition to the further expansion of its own subsidiaries, S&T is also focusing on strategic partnerships in order to drive forward its business in Asia and with Asian clients. In Japan, for example, the company has since 2005 benefitted from a cooperation with Magnus Asia, whereby it has been able to look after its clients in East Asia. In November 2006, S&T entered into a strategic alliance with NTT Communications in order to support clients of NTT Com in Central and Eastern Europe, as well as Russia, in the field of system and network integrations and also to provide software solutions where needed. Both companies have already worked together on several projects for European and Japanese clients and complement one another perfectly in terms of the services they provide. ”What is important for us is to be in a position to provide our international clients with a high quality service. Where we do not have a presence in the form of our own subsidiaries, our partners will take on this responsibility and vice-versa. Further partnerships with highly respected companies are certainly possible, and several specific projects are already being discussed”, adds Rosner.

Legend: Subsidiary from S&T subsidiary IMG in Tokyo, Japan
Copyright: S&T/IMG

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