Internationalization is one of the issues that has been addressed by the Uruguayan Chamber of Information Technology (CUTI) for a decade through its different directives. In the current presidency, it was decided to give a strong impulse to this aspect, which is central for the companies of the sector. CUTI has among its main missions the promotion of the sustainable development of the sector, the dynamization of markets, the facilitation of growth and globalization of companies and the emphasis on the development of human resources and social responsibility.
"Every time a new board of directors takes office, decisions are made. Currently there is a commission that works specifically on the topic of internationalization with two defined lines of action: increasing exports and missions to key markets," explained Computer Engineer Leonardo Loureiro, CUTI's Vice President of Global Markets.
To achieve an increase in exports, the strategy defined by CUTI is to work in foreign markets and for this specific actions were defined on the basis of tangible data and targeting the major export destinations of Uruguay. "In everything related to promotional activities we defined to focus on the United States," added Leonardo Loureiro.
CUTI implements a set of activities to work in the international market and specifically with the United States, given the importance of the North American market. "We want to increase the presence of Uruguayan companies in that country," he said. To this end, the Chamber works with companies of different sizes and characteristics. "We choose events to attend that may be attractive for the companies that are part of CUTI. We work together because it allows us to give it more power," Loureiro explained.
There are companies in the sector whose activities are oriented to the entrepreneurial market, both Uruguayan and destination. Among these events, the renowned Tech Crunch Disrupt fair stands out, which brings together exhibitors representing companies from the technology hub of Silicon Valley and the San Francisco area. Last year, Uruguayan software developers participated for the first time, sharing experiences with peers from around the world.
"The companies that go to this fair have the support of Uruguay XXI and there are different activities for them to exhibit their work and there, as in another event that takes place in Orlando, business networks are generated with other companies both in the United States and the rest of the world," he added.
Loureiro also noted that in 2011 the company Bantotal, which is dedicated to the development of software for financial institutions, participated with great success in that instance. The firm, headquartered in Uruguay, is 100% focused on generating, implementing and maintaining solutions that are easy to use and at the same time allow improving and increasing the business of all types of financial institutions.
For Uruguay it is an added value that its professionals have better response time and adaptability to the problems raised than other countries.
Missions around the world
Leonardo Loureiro, vice president of Global Markets of CUTI, highlighted that a set of actions are being planned to be executed in 2017. In this sense, it has been defined to resume the specific missions of about 15 companies that have a certain level of maturity to carry out specific activities in the United States and also analyzes with the government the possibility of making trips in larger groups to the most important destinations for the sector.
"We are looking at the places we will visit in the United States where President Tabaré Vázquez and some ministers will surely accompany us to position the Country Brand," said Loureiro.
In 2016, CUTI's board has accompanied the presidential trip to the United States and China. "We are clear that the focus is on U.S. soil but we do not stop participating in activities in other countries," he added.
CUTI also defined the resumption of missions in Argentina as positive. "A country that due to its economic and political situation was simply being sold by some companies on an ad hoc basis, but now we see that there is an important change that allows us to open the market".
In addition to the aforementioned destinations, the Chamber supports member companies in multi-sector trade missions or those that are more specific. "Both nationally and internationally we do many activities together with the government. Uruguay XXI is a key state agency in everything related to promotion. We have been working with them for a long time, something that fortunately has also happened with previous governments".
All these actions also seek a better positioning of the sector and with this the State demonstrates, by being part of the missions, an institutional backing, a support as a country and a serious industry. "Potential clients of companies associated to CUTI are interested in having information about the country with which they will establish a long-term relationship if they have a supplier in Uruguay. It is logical that they want to know the characteristics and guarantees offered by the country, as well as the compliance with legal standards or if the companies are audited. In the business world this is very important," said Loureiro.
CUTI also seeks to attract foreign capital to Uruguay in parallel to the missions that aim to promote local industry. "It is important for large companies in the sector to settle here because of the spillover that this causes".
United States
Foreign sales of the ICT sector reach an average of 300 million dollars a year and the United States appears among the top 10 destinations of Uruguayan exports in the last decade. To that destination goes 40% of the sales of technology companies and Uruguay is making a strong presence as a brand in the United States and the actions organized by CUTI and Uruguay XXI aim to continue positioning the country as a supplier and investment promoter.
CUTI has set as a goal to carry out actions towards this destination because it is where the sector has more impact. "We have many companies that do work ranging from the sale of specific development services to consulting. There are many solutions that are used both in the United States and in Uruguay and that people don't know they are local creations", said Leonardo Loureiro. He explained that this happens in areas such as e-commerce processing commerce solutions, with programs supported by a platform that may be international but implemented by a Uruguayan company. There are also national products that are inserted in something more global. "There are local companies that work in artificial intelligence, as is the case of Tryolabs, whose products are used internationally," Loureiro said.
He added that there are also companies that develop programs or final products for firms based in the United States. "The spectrum is very varied and something that Americans are very interested in is that in Uruguay we handle the same time zone and that we have good response time and adaptability to the problem compared to professionals from other countries. In those aspects we have a lot of added value". He remarked that CUTI has, in addition to the focus on the United States, plans to continue working with companies that are thinking of reaching other markets.
"We are clear that the focus is on the United States (destination of 40% of the sector's exports) but we do not stop participating in activities in other countries".
Business Accelerator
CUTI's Global Markets Committee has defined the creation of a business accelerator based on the importance of the sector for Uruguay. The technology services industry is highly valued and brings to the country benefits of more than US$ 200 million in exports and 12,000 jobs, registering a zero unemployment rate.
"We want there to be a national business accelerator, which could be managed by CUTI or by third parties, but it has to happen," Loureiro said.
The objective is to set up an organization that financially supports new ventures, whether they are internal projects of companies or spin-offs, that is, a business unit of a large company that wants to develop as something new. "Accelerating these types of ventures involves financial support, coaching and commercial activities to help them grow from small to large companies".
Projects will be selected twice a year, in March and August, following an application process. A maximum of 10 to 15 proposals will be chosen for a 6-month mentorship that will involve coaching activities. Contacts with equity investors will also be established to take the company or project to a more advanced stage than it started. CUTI is currently working internationally and analyzing funding sources to set up the accelerator, such as with the Inter-American Development Bank (IDB) and other organizations interested in this type of activities.
"It is necessary to create a kind of ecosystem to carry out a business accelerator," said Loureiro.
Source: Somos Uruguay Magazine l December 2016
Connect