EAFIT University

School of Business Administration International Business Department MIB - International Management

Operation Expansion Software’s Force S.A.S. from Colombia to Switzerland

Individual Essay Presented to Dr. Thomas Treutler M.Sc. Javier Augusto Bernal Delgado by Alexander Zehnder February 27nd 2011

Operation Expansion Software’s Force S.A.S.- Colombia to Switzerland 1 Abstract

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This Essay shows the entry strategy proposal and recommendations for a Colombian Software Factory “Software’s Force S.A.S.” to expand its operations into Switzerland. Cultural differences, Ethical and Social Aspects, current marketplace situations and Leadership are some of the areas that this document covers. Its purpose is to show first a comparison of the two countries and then give certain recommendations to Software Factories in Colombia that want to expand into Switzerland in general. To expand the operations of a Software Factory only part of the primary company activities need to be multiplied and transferred. The Software Development department for example maintains exclusively in Colombia where Software can be built cost efficient. What needs to be set up in Switzerland is a distribution organization that covers: Legal and financial aspects, customer relationship, top level project management and first level support for the final customer. The scope of this paper includes a SWOT analysis as well as VALUE CHAIN evaluation and general strategies usable in this operation expansion project. It shows how to control de expansion project and the international operation itself. The three real-life cases of Colombian Software Companies, that have already expanded their operations into Europa and/or Switzerland, show similarities and give some hints on how they approached, failed or even succeeded. Finally, there is a conclusion of the investigation and a list of recommendations for the Software’s Force S.A.S. operation expansion project.

..............................................5 HUMAN RESOURCE MANAGEMENT ................................1 Colombia ....... 6 7................................................2 Switzerland .................................................................. 15 7.....................7 Corporate Culture Typology ................................................... 18 8 9 10 CONCLUSION ............................1 RELATIONS BETWEEN INDUSTRY AND GOVERNMENT ............................. 16 7..........................................................2............................................................................................................................................ 11 7..............................3 ITO Value Chain ........................................................................................................ 7 7......................4.................1 Mission and Goals .........................................1...... 4 INTRODUCTION .......... 17 7................................................................ 12 7......4.. 4 INDEX ................................................................................................................................................................ 16 7..... 7 7.............1 Cultural Dimensions ........... 11 7............................................................................................................................................................................................... 17 7..........................2............................................................S....................................................................................... 15 7....................................A............................................1...................................................................... 6 7.................................. 6 7.......................................................Operation Expansion Software’s Force S................2 Cultural Compatibility ............................................................................4 International Strategy............................... 20 BIBLIOGRAPHY............4 OPERATIONS AND ORGANIZATION ...........................................................................................................................2 Scanning International Environment .............................................................................................4...... 6 7.................................................................................................................................................................. 19 RECOMMENDATIONS ...................................................6 Analysis and Control ..........2 INTERCULTURAL FRAMEWORK ..........................................................................................................................................................................3 ETHICAL AND SOCIAL RESPONSIBILITIES............................. 9 7.... 2 TABLE OF CONTENTS................................................................................................................................... 5 COLOMBIAN COMPANY TO EXPAND TO SWITZERLAND .............................4..................................................................................................................................................................................4........................................................................Colombia to Switzerland 2 1 2 3 4 5 6 7 3 / 22 Table of Contents ABSTRACT ...............................7 VIRTUAL TEAMS ..........................................................................................................................................................................................................6 MOTIVATION AND LEADERSHIP ...............................................................................5 International Organizational Structure................................................................................................. 4 LIST OF TABLES ............................................................................................................................... 3 LIST OF FIGURES.....4. 11 7.......................................................................................................................................... 17 7............... 21 ................................................................................................4.......

.......... 14 BRIC Brasil........... 6 HCC High Context Communication ... 7 ROI Return of investment ...................... 22 FTA Free Trade Agreement ............................... 22 UAI Uncertainty Avoidance Index ................................................................................................................................................Operation Expansion Software’s Force S. 12 INV Individualism ..........A.................. 2003)...................................................... 19 CBI Centre for promotion of imports from developing countries ....... 19 CHF Swiss Francs ................ 5 BPO Business Process Outsourcing ........................................ 5 Figure 2: Hofstede Radar Diagram (Hofstede................. 2009) .... 2007) .......... 7 ICJ International Court of Justice ................................ 8 Figure 3: Globe Results .................................... 12 Figure 7: ITO Value Chain Diagram .................................................. India and China ................................... Russia............................ 7 ................Colombia to Switzerland 3 List of Figures 4 / 22 Figure 1: Age dependency ration (FSO... 7 LTO Long Term Orientation.. 2010) ................ 5 PDI Power Distance Index. 16 EMP Export Marketing Plan ......................... 10 Figure 4: Globe Colombian SHOULD & Switzerland IS ............ 13 COP Colombian Peso .......S................ 15 4 List of Tables Table 1: Trompenaars Comparison (Stähli........ 9 5 Index ITO IT Outsourcing ............................................ 6 YDR youth dependency ratio ..................... 5 ODR old-age dependency ratio ................................. 2008) ................... 13 CSF critical success factor .. 9 Table 2: Globe Results based on (Chhokar............................................ 8 NRI Network Readyness Index ............................ 8 WEF World Economic Forum ..................... 16 LCC Low Context Communication ............ 10 Figure 5: Strategy Formulation Process (Fatehi.................................................................................... 11 Figure 6: Responsibility diagram ........................................ 11 TCO Total Cost of Ownership ..................... 13 KPI key performance indicator ...........

(Proexport.Operation Expansion Software’s Force S. 2010) Colombia on the other hand has been rated as one of the CIVETS-Countries and shown in the last years that it has gained enormously in political stability and decreased violence effectively..A. people has to carry the costs of 34 young and 27 old persons and the trend seem to get worse. Families have fewer children and at the same time a steadily increasing life expectancy which affects the youth dependency ratio (YDR) and old-age dependency ratio (ODR). This leads to an “overload” of social institutions as in average 100 working In Switzerland the Work Age (WA) is considered from 20 till 64 years of age. Only the best paid and highly socially recognized jobs are Figure 1: Age dependency ration (FSO. before Chile and even Brazil. 2010) attractive. Based on that.Colombia to Switzerland 5 / 22 6 Introduction For the last decades Switzerland has suffered a dramatic change in the population’s age structure. The lack of human resources has a big impact on what labor the young professionals choose. 2009) .S. At the same time Colombia appears on several studies in surprisingly high rankings like NRI 4 in Latin America. Youth-Age (YA) is in this statistics from 0 till 19 years and Old-Age (OA) everyone above 64 years. Therefore it does not surprise that the news in Switzerland published a headline writing that over 32’000 IT Professionals will be missing by 2017 (TA. The IT Human Resource of Colombia grows about 14’000 IT Professionals every year and raises Colombia to be number 1 in “Competitiveness – Availability of Qualified Labor” in and number 3 in “Professionals in IT Sector” in Latin America right behind Brazil and Mexico. the definitions the formulas are: YDR = YA / WA and ODR = OA / WA.

Operation Expansion Software’s Force S. OSEC is the umbrella organization as result of a decision taken by the Swiss parliament to promote exports.1. It is neither the first choice as there are some well-known cultural and political issues that struggle such operation. 7.1 Relations between Industry and Government In Colombia and Switzerland exist several governmental initiatives to increase the exportand import-opportunities for national industry provided by special institutes/agencies and programs. “Invierta en Colombia” and so on. “Manufacturing and Supplies”.2 Switzerland Since January 1st 2008. This special agency runs different programs for each area it promotes. Bancoldex and Fiducoldex are the export financing institutions led by the Ministry of Commerce offering financial services and products such as financing for the importer of Colombian goods and services and being the financial instrument to support the Colombian state strategic export plan.S. For example the SIPPO program is exclusively established to help foreign companies to export into Switzerland products and services which are in the interest of the Swiss Industry. almost unknown opportunities appear. “Textile and Apparel” as well as “Service and Entertainment” where Software is included for instance. (Businesscol. 2011) 7.1 Colombia The government of Colombia has created the institute “Proexport” to develop a powerful export strategy agency and support platform in the macro sectors “Agri-business”. There is even a common initiative in progress that embraces the governmental influence to the export and import industry which is the FTA that Switzerland is implementing with Colombia like announced at the WEF 2011 in Davos.Colombia to Switzerland 6 / 22 7 Colombian Company to expand to Switzerland For a Colombian company it is not an easy approach to expand its business into Swiss Territory. Nevertheless.A.. due to the transformation of Colombia and its recovering image. The . (Heyden. imports and related investments.1. 2010) 7. This special agency promotes trade with subsidies and international export campaigns like “Colombia is passion”.

Switzerland and Colombia show some significant differences that have to be considered. (Swiss. (Hofstede.2 Intercultural Framework As for any international expansion. 2010) Colombians are well known as indirect speakers who tend to become very animated. This should not be misinterpreted with aggression neither. (Römer.Operation Expansion Software’s Force S. to avoid confrontation at all cost and if someone made a mistake not to expose it publicly. Often Swiss directness is misinterpreted by other cultured people as rude or even aggressive.1 Cultural Dimensions Comparing the Cultural Dimensions using the study results of Hofstede and classifications of Trompenaars.and import-promotions as well as help import products from strategic countries and industries. even if this generates uncomfortable ambient. It is important. without couching any uncomfortable messages in any softer way in order to spare the feelings. Being direct more than diplomatic is typical Swiss behavior. The most impressive cultural difference detected by Hofstede is the High Score of Individualism (INV) of Switzerland (68. which is not the case at all.S.2. 2005) This confirms Hall’s Context Communication Level classifications for Colombia HCC and Switzerland LCC. it is key to get to know the cultural differences between the origin and destination. rank 15/69) versus the very Low Score of Individualism from Colombians (13. 7. 2010) 7. operate export. (Colombia.A. Swiss Communication is straight forward where it is spoken what is thought and thought what is spoken.Colombia to Switzerland 7 / 22 objective is to organize trade missions. rank 65/69). This confirms not only that Swiss population is highly individualistic in their nature but also the high grade of collectivism by the Colombians.. 2009) . People speak what they think.

rank 26/69) reflects this society structure clearly. a “male chauvinist” country. even Colombia’s high MAS (64. 2009) Where Colombia is considered. Switzerland’s power is distributed relatively equal throughout the entire population’s societal structure and the PDI (34. there are 3 out of 4 compared indexes which show a big difference that indicates plenty of space for misunderstandings and communication issues. their UAI (58. rank 46/69) is demonstrating a tolerance of divergent points of view and the acceptance of a unique and unusual situations and ideas. It shows also. 2009) It might surprise to see the Uncertainty Avoidance Index (UAI) of Colombia (80.. This means that both Countries have very strong gender differentiation and highly polarized values of men and women. that there are unequally distributed roles between genders in the society. In general. 2009) UAI 80 58 8 / 22 80 60 40 20 0 PDI 67 34 INV 13 68 64 70 MAS Colombia Switzerland Figure 2: Hofstede Radar Diagram (Hofstede. The PDI of Colombia (67.S. 2009) As Colombia was not rated in the second study by Hofstede. the added index for Long Term Orientation (LTO) has not been evaluated for this Country so far. 8/69) is even higher. (Hofstede. Switzerland’s image looks different. (Hofstede. whereas the Swiss population feels protected and do not fear the outcome of unpredictable situations. But surprise.Operation Expansion Software’s Force S.Colombia to Switzerland The other big cultural difference is shown by the Power Distance Index (PDI). rank 60/69) is indeed one of the lowest of all evaluated countries. Colombians have an accepted and even published multilevel society system called “Estratos” that can be interpreted as “Lifestyle Levels” where 6 is high-society and 1 is low-society. rank 26/69). (Hofstede. .A. 17/69) Switzerland MAS (70. but it reflects the desire to control as much as possible by laws and regulations in order to minimize crimes and fraud. like most Latin Countries.

why there seems to be a general understanding and even admiration from Colombians for the Swiss Culture.16 5 4.72 5.54 3.57 3.81 4.81 4.21 6.67 2.57 5.82 3.94 3.67 4.04 4.73 4.94 3.2 Cultural Compatibility Seeing all these differences the question occurs.92 4.94 4.97 3.61 3. Related with the External.69 5.72 3.00 2.16 3. Interesting as well is how the society defines in Table 1: Trompenaars Comparison Colombia the status rather by the family (blood. 7.79 Is-Rank CO CH 11 48 53 33 12 61 53 61 12 13 25 54 39 39 46 22 53 59 Is-Band CO CH A D C B A C C E A A A B B C C B C B Should-Score CO CH 2.98 3.Colombia to Switzerland 9 / 22 One of the differences that have not been reveled so far in the analysis of Hofstede is the Particularism of Colombia which means that circumstances dictate how ideas and/or Colombia Switzerland Particularism Universalism Collectivism Individualism Emotional Neutral Diffuse Specific Ascription Achievement Synchronic Sequential External Control Internal Control practices apply and causes frequently changes of contracts.68 4.(Stähli.27 4. 2003) line). labor position than by results and facts of an unknown individual whilst in Switzerland the point that matters most is results and personal achievements.9 5.38 4.73 3. 2007) .and internal Control.97 4.6 3.21 3.06 5.Operation Expansion Software’s Force S.2.68 4.44 5.94 5.43 3. Bellow a comparison of scores.97 4. Swiss like to be in control themselves and are used to take responsibilities of their actions versus Colombians are used and comfortable to work in an controlled environment where the responsibilities are backed up.51 6.25 3.94 4.42 4. law and procedures apply for all the same way.27 4.56 4.25 4.79 Table 2: Globe Results based on (Chhokar.06 6.6 5.51 3.56 2.37 5.A.42 5.98 5.04 2.. Colombia & Switzerland Societal Dimensions Power (Elitism) Distance Institutional Collectivism In-Group (Loyalty) Collectivism Uncertainty Avoidance Gender Egalitarianism Assertiveness Performance Orientation Humane Orientation Future Orientation Is-Score CO CH 5.54 5.38 4.73 Should-Rank CO CH 61 46 7 38 2 56 21 1 9 54 44 14 3 1 14 53 25 2 Should-Band CO CH E B A B A C B A A B B A A A B D B A Match-CH>CO CO-IS CH-SH 5.97 3.82 5.9 3.69 6.2 4.44 3.37 3.94 5. ranks and bands by GLOBE.20 3.92 3.73 Match-CO>CH CO-SH CH-IS 2.61 5.43 4. The Universalism of Switzerland means the same rules.S.

it can be assumed that the high appreciation of Swiss-Culture by Colombians is based on this match. .Operation Expansion Software’s Force S.S. But the real interesting part is to see how much the Swiss-Actual-State matches with the idealistic “should-be” view of Colombians shown in “Figure 4: Globe Colombian SHOULD & Switzerland IS”.. Based on that.A.Colombia to Switzerland 10 / 22 Figure 3: Globe Results Once more. Figure 4: Globe Colombian SHOULD & Switzerland IS There is an incredible 89% match whilst comparing “IS” of both countries resulted just in 76% and only 73% comparing “SHOULD-BE” of both. a lot of differences and just as expected like seen in “Figure 3: Globe Results” above.

. will be preferred versus comparable competitors. The general steps for expansion planning are described by Professor Fatehi Kamal and schematized in Figure 5: Strategy Formulation Process .A. Figure 5: Strategy Formulation Process (Fatehi. ethical responsible and last but not least legal operations. The ROI of the expansion is based on big differences in Software Development costs in Switzerland and Colombia which generates additional utility. The operation has as mayor goal to build long-term relations between the Software Factory and the Swiss Customers. Human Rights fulfillment.3 Ethical and Social Responsibilities Ethical correct behavior is absolutely necessary for any company that wants to do business with a Swiss one.Operation Expansion Software’s Force S. appropriate work conditions as well as environment protection is indispensable to be shown and proven to gain confidence in Swiss industry.4. Cases of corruption or even involvement in children working would conduct to long-term and probably unrecoverable breach of business relations. 2008) 7..4 Operations and Organization To enter the Swiss Market it is needed to have a strategy plan or process to maximize the chances of success with the company expansion.S.Colombia to Switzerland 11 / 22 7.1 Mission and Goals The Mission is to become a recognized high quality and cost efficient Software Factory that Swiss Enterprises consider to do to their Software development with. 7. providing economic high-tech Software Solutions and become part of their value chain. Colombian companies which can show socio-environmental.

4.2 Scanning International Environment To analyze the International Environment.1 Legal aspects The civil law system of Switzerland is influenced by customary law and acceptance of the ICJ (International Court of Justice).S..Colombia to Switzerland 12 / 22 Therefore an operation expansion from Software’s Force S. (CIA.4. Colombia’s legal system is based on Spanish law with a new criminal code adapted from US procedures which reached complete implementation in January 2008.S. different topics have to be considered to get a good overview of what such an operation expansion has to face. 2009) .A. Colombia is planned to enter the Swiss Market with a subsidiary that is in charge of all the primary tasks except the Software Development part. 7. which remains in Colombia.2.Operation Expansion Software’s Force S. Figure 6: Responsibility diagram 7.A. Colombia has not accepted compulsory ICJ jurisdiction.

 Colombia is not famous for ITO and lacks of visibility in the European IT Sector.Operation Expansion Software’s Force S. 48h working hours and 3 weeks of vacation per year increases the competitiveness of Colombians workforce. 7.S. Strengths       Colombia’s IT Sector has economic and well training human resources available whilst Swiss IT Sector does not have enough.A. Italian and Romansh) are spoken in Colombia. . neither is Spanish well known in Switzerland. opportunities and threads.2 SWOT The SWOT-Analysis is one of the techniques that helps to determine the certain aspects of the environment and classifies them into strengths. weaknesses.and Export protection institutions present at Switzerland and Colombia Between Switzerland and Colombia is the FTA in implementation which will provide additional benefits Weaknesses  None of the Swiss languages (German.. French.2. Low operation costs allow to produce to very low self-costs There are Legal Investor and Import. Swiss market place is financially very strong and requires a lot of IT Services. This because in case of disputes the trails would be done based on Swiss Rules to simplify attorneys work (as they do not have to deal with foreign laws) and hold on Swiss Ground which besides prevents travel costs.4. English is therefore a foreign language for both parties  There is a Time zone difference of 7hours hours at summertime and 6hours at wintertime  Bank transfer has to be made using an intermediate exchange to USD as Switzerland uses CHF and Colombia COP which increases exchange costs and duration.Colombia to Switzerland 13 / 22 In general Swiss Companies and Institutions will most likely insist of having the contracts bound to Swiss Jurisdictions and Swiss Territory.

SME needs have not been covered so far and are a big potential for Colombian Software Factories.Operation Expansion Software’s Force S.S. doing business will get easier day by day.Colombia to Switzerland Opportunities 14 / 22  Whilst big Swiss Enterprises are used to ITO and BPO usually doing such business with large Software Factories in Rumania. ..A. India and sometimes Brazil. Russia.  If the expansion of the Colombian Software Factory into Swiss Market is successful. it is most likely that the same or at least similar approach can be repeated to go for other central European States as well.  Assuming that the political and social image of Colombia keeps improving and the Governments of Switzerland and Colombia keep their efforts to improve SwissColombian negotiations.  Colombia and Switzerland break relationship and no further governmental support would be provided  Competitors arise due to the big business opportunity and might spoil with under the edge prices to gain market shares. Threats  A political change of action from Colombia or Switzerland that can put in risk any plan  The currency value of either country may change unexpectedly and jeopardize pricing and trade in general.

4. Due to the cost and time consuming spin-up process of a new company.Operation Expansion Software’s Force S. This leads to the TRANSNATIONAL STRATEGY and the high need of local presence also conducts to choose a proper entry strategy where exporting and licensing is ruled out immediately.Colombia to Switzerland 7.. As Custom Software Development depends largely on customer requirements and needs to adapt to the client companies. negotiations would be highly complex and reorganizing the Swiss company could generate plenty of internal resistance.4 International Strategy To implement the operation expansion from Colombia to Switzerland an international strategy has to be selected. the offered service needs to be adjusted to achieve the highest possible acceptance in Switzerland whilst general procedure needs to maintain. Figure 7: ITO Value Chain Diagram 7. but also very expensive.S.3 ITO Value Chain 15 / 22 A helpful way of visualizing the primary and secondary actions of the ITO is using the “Value Chain Diagram”.4.A. The Acquisition of a Swiss Company as a distribution channel would be fast and leads to immediate access to the Swiss Market. founding a new wholly .

A lot a transparency. improved and most importantly repeated. Like that costs. 7.Operation Expansion Software’s Force S. analyzed and adjusted permanently.. Therefore the most recommendable entry strategy is to find a STRATEGIC ALLIANCE partner that has local visibility and good reputations in the IT-Industry already. . Once the operation is running.Colombia to Switzerland 16 / 22 owned subsidiary is neither a real choice. controlled. the CSF’s and KPI’s have to be defined to cover the most important input and output values of the overall operation. based on the findings reported which is highly flexible and fast as needed. Considering that on-site presence is required from the beginning and a strategic alliance or jointventure will represent the outpost in Switzerland. knowledge and information is generally required. As soon as the procedures and rules are written. As the expansion is not a common repeated project. risks and resources are shared and a fast time-to-market approach is obtained.and lower limits which adds a lot of value for the management of the operation. exchange of material.4.4.6 Analysis and Control Analyzing and controlling this transnational corporation is complex and shared strategic decisions have to be made. tendencies. The bureaucratic controls. 7. like written rules and procedures.A. a SPC can be put in place to get predictions. upper. build an operation of company internal standards which can be measured. Measuring the KPI (key performance indicator) and comparing them with the expected input and output values. the FOREIGN SUBSIDIARY STRUCTURE is the recommended approach which reports to the responsible of Swiss operations in Colombia. a more professional approach of control has to be implemented. The first special project is the operation expansion itself which has to be controlled. an organizational structure needs to be chosen that fits best to the conditions and plans of the expansion planed.S. The alliance can be anything from contractual level until the founding of a joint-venture company.5 International Organizational Structure In the process of an early internationalization. personal control is the adequate way to do so and adjust the executions plan if needed.

5 Human Resource Management As seen earlier. POLYCENTRIC staffing is most likely already in place for the subsidiary.A. This might be a challenge but can be turned into an advantage if managed correctly. 7. 7. To have expats in the Swiss subsidiary is not needed due to the Eiffel Tower typology. there are some mayor differences on cultural level between Swiss and Colombians. This means that jobs and tasks are well defined and employee opportunities are equally handled. In general.. As we have seen in Figure 2: Hofstede Radar Diagram Swiss Employees are highly focused on their personal achievements whilst Colombians are motivated by the Team result and image in the team itself. the Software Factory is located in Colombia and has mostly Colombian Workforce as well as the Swiss Distribution Subsidiary is staffed with Swiss employees.6 Motivation and Leadership In regards of motivation and leadership. it’s recommendable to have a Swiss national located who is in charge of the Swiss operation. the “Eiffel Tower” fits best the plans of this operation expansion. The staff involved in these interactions has to be motivated to work out cultural issues and understand the cultural differences even on motivational level. 7. it is important to cross-check the overall acceptance of the procedures in Switzerland as well as in Colombia due to the transnational approach. it is important to define the scope of cultural interactions. The cultural interaction takes place in when a project has reached the phase where it is passed from the Swiss subsidiary to be manufactured at the Colombian Software Factory and once it is ready to be returned from the Software Factory to the Distribution Subsidiary.Operation Expansion Software’s Force S. Based on the strategic alliance with a Swiss Company.7 Corporate Culture Typology As a result of a well-documented transnational operation with rules and procedures that are highly task oriented. Nevertheless.Colombia to Switzerland 17 / 22 For cultural control. .4.S. at the HQ in Colombia.

and customer information on a Web portal for example. So the Leadership-Style cannot be bounded to the leader but needs to be adapted to the individuals that follow. who considers people in general lazy.7 Virtual Teams To work in a strategic alliance between Colombian HQ and the Swiss Distribution Company.Operation Expansion Software’s Force S. would immediately run against the team as they like to have their own responsibilities and work autonomous.A. 7. there is no other way than to work on the same project with people from Switzerland and Colombia at the same time which leads to the Virtual Team itself. the different Time zones and the different languages are important issues. First of all its success depends on the disposition. Gantt charts. project.Colombia to Switzerland 18 / 22 Therefore the motivation strategy in all tasks that have interactions between Colombia and Switzerland needs to consider that and offer rewards for personal AND team results.. For leadership it is also very important to understand. virtual teams are required.S. It makes it possible to have weekly meetings and to close the gap of the around 11’000km between Colombia and Switzerland without having to travel. This requires a high flexibility and understanding of theses cultural differences at leadership styles to apply the appropriate style to one part of the team and another style to the other part of the team. documents. communication skills and discipline of the team members themselves. that in Switzerland a Type-X Leader. In Colombia employees expect a leader to be police-like controlling and take the responsibilities in general. The other important part is the web collaboration tool which centralizes coordination of tasks. For the virtual team to work it is not enough to have the right communication tools like Video Conferencing and chat. Also the type of rewards has different values for each Country and needs to be chosen very carefully. Nevertheless. As the overall Project Management of acquired projects in Switzerland is handled in there and the Customers are located in Switzerland as well. . which enables the team to work together.

Even though this works first. have been able to be considered by Swiss Companies as they were referenced by Swiss citizen employed in the Colombian Company itself. it would be quite ignorant to believe that Colombians ITO is competing with the Software Factories of the BRIC states.a.Operation Expansion Software’s Force S. Nevertheless. The Colombian’s ideal picture of their Culture is almost like the Swiss-Culture already is and that generates admiration and compatibility. The examples show. Safyr S.. solid long-term governmental publicity strategies and even lower production costs. Colombian ITO has to find its niche and specialize on it to be and maintain competitive in a long term. that the Colombian ITO is just about to become a valid option for the Swiss Market.Colombia to Switzerland 8 Conclusion 19 / 22 For a Colombian Software Company it is very difficult to even become visible in the Swiss Market and almost impossible to get projects without personal references that validate the Colombian Company and its services. Nevertheless. They have years of advantage. it is not a scalable “Strategy” and besides depends highly on the Swiss Employee as well as on the Swiss Company that this employee is referenced by. The initiatives from SIPPO/OSEC and PROEXPORT as well as CBI indicates that there is a high business opportunity for companies and countries. and ilimitada s. but first there is the need to become visible to be considered in the future as al reliable outsourcing partner. .A. Switzerland is and will be for the next years a big potential for ITO in general due to the high demand and low local human resource coverage.S.A.

S.Operation Expansion Software’s Force S.     For the strategic alliance. it is recommendable to have someone that speaks at least of one Swiss official language at the Colombian HQ.A. . human resource requirements on both sides and to develop an accurate budget for the expansion project. if there results a Joint Venture. Working with one or several Swiss Strategic Alliance Companies that already knows the Swiss Market and has gained visibility themselves on contract or JointVenture basis is the most cost. just like having personal references. In the Colombian HQ it is highly recommendable to have a Swiss Citizen in charge of the Swiss Operation Expansion and operation itself.. The “Eiffel Tower” is the most appropriate Corporate Culture Typology as the international cooperation requires transparency and control defined in procedures and rules that apply for all. Participating in the governmental initiatives from Proexport and SIPPO is very important. but it is not enough.   Having a clear entry strategy and expansion plan is key and the progress needs to be monitored permanently to allow adjustments if needed on the way.and time-efficient approach to expand into the Swiss Market. the POLYCENTRIC staffing is obvious to be applied.  A very detailed EMP must be developed first to define target market segments. state of the art Web collaboration and Videoconferencing tools are required. individual follow-ups are required. To work in a virtual team with the Swiss Alliance Corporation. estimate ROI and TCO.   Punctuality is not to be underestimated doing business with Swiss Companies and reflects professionalism and discipline.Colombia to Switzerland 9 Recommendations    20 / 22 To do business with Swiss Companies. human rights must not be compromised in any circumstances Contracts shall be made using Swiss jurisdiction Even though English is spoken in most Swiss Companies.

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