Chilean IT consultancy Actualisap has embarked on a twofold expansion in Latin America, aiming to strengthen and extend its portfolio and move to new vertical and geographic areas in the region, corporate director Jorge Campos told BNamericas.
After a diagnosis of the company, Campos, recently appointed to his position, defined the two-pronged growth path.
First, regarding the company's portfolio, the plan includes strengthening and increasing its SAP (NYSE: SAP) offering. "Our current portfolio is based 100% on SAP solutions, but it isn't 100% of SAP's portfolio," he said. "We want to double our coverage of the SAP portfolio."
Additionally, the company is planning on complementing its SAP offer with solutions from other providers. "We're already in talks with four IT companies. I cannot disclose the names, but I can say they're hardware, infrastructure and services providers that will help us deliver an integrated offering to our clients," Campos said. "We're not going to compete with SAP; we are going to complement it."
The executive expects to close the first of these deals within a matter of days, the next two agreements by early October and a fourth by year-end.
Secondly, Actualisap's growth path entails expanding operations to new geographic areas in Latin America.
The company is working on the final details for a foray into Ecuador and Bolivia. "We're also planning on expanding to Mexico, probably by October, through a contract we've already signed there," Campos said.
And in about two years, the company will aim for other larger countries in Latin America, such as Brazil and Argentina.
"We believe that this increased coverage will help us maintain our current 40-60% annual growth," he added.
According to Campos, SMBs usually lack a corporate vision when expanding operations, focusing on developing business strategies according to different geographic markets but failing to establish linked and unified processes and resources.
As such, the company has implemented a corporate model based on unified processes across all the markets where Actualisap operates.
"For instance, if I have some extra resources in Chile, under this new structure I can allocate them to any of the other geographies where we have presence to develop other projects. That is a sign of our maturity in corporate governance," the executive said.
Since its foundation, the company has focused mainly on the utilities sector, which also paved the way for Actualisap's international expansion and is currently the main contributor to the company's top line.
Actualisap has also diversified to cover other vertical markets such as agribusiness, manufacturing and distribution, mining and construction.
But now the company is exploring opportunities in the oil and gas industry and the retail sector, which is very strong in Chile, Campos noted. "I believe the oil and gas sector will contribute significantly to the growth of SAP and Actualisap. That's why we're giving a strong emphasis to this industry."
PARTNERSHIP WITH INOSAT GLOBAL
In May this year, Actualisap signed a partnership agreement with European GPS fleet location company Inosat Global to create Inosat Chile, as part of Inosat Global's US$1.5mn expansion plan to develop the business in Latin America.
"We have achieved spectacular progress with this partnership, growing approximately 500% in these first few months," Campos said.
Though the partnership is exclusively focused in Chile, in light of the solid results obtained, the company is planning to expand the agreement to other countries in Latin America.
Actualisap is already in talks in Peru and expects to close a deal in the next two or three months.
Actualisap - which provides services such as SAP solution optimization, implementation and license sales - was founded in 2002 and has more than 25 clients. The company has presence in Chile, Peru, Colombia and Panama.