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EXPORT OF TECHNICAL CONSULTANCY SERVICES

Entrance to Global Markets of the Consultancy Sector in Emerging Economies / Difficulties + Models

By Reinhard HONERT

reinhard.honert@gmail.com Skype: honert

VOIP: 0049-2375-612360Eg.-Mob.: 0020- 1-9813-0535

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Free Lancer

1. Free Lancing in Consulting?2. How to find Free Lancer?3. Pros and Contras4. Aspects of Working in Malta

5. Arab Upraising and Strategic Aspects

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1. Free Lancing in Consulting?

• Company can’t hold all Experts in-house(In financial terms Experts allow Leverage)

• Subcontracting is closest to free lancing• Partners want their own share in a project• Sometimes better than outsourcing (India)• Typical FL fields: journalism, editing, event

planning +management, proofreading, computer progr., web +graphic design, tour guiding, translating, etc. (International FL is relat. new)

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2. How to find Free Lancer?

• Your own network, your association• Martin Güldner (GOPA) and Thomas

Gonzales (IDOM) use in-house Databases

• International firms offer access to DB via internet e.g.: http://www.~~.~

– devex.com/en/groups/89 ; ce-lob.de/Projects/ ; connect-eu.eu/– xing.com/net/en-it-freelancers-searching-for-projects/europe-aid/– ageg.de/project_jobs/individual_consultants_lot_2/– developmentaid.org/viewjob-62884-Short-Term-Freelance-Consultant

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3. Pros and Contras

• Pros: specialized experts are expensive to entertain in-house;

• Gain more mobility; without fix employees• Optimize workload; optimize proposal• Contras: reliability, integration in the own

team and corporation / identity• F.L. may have their own agenda• To which degree are they loyal

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4. Aspects of Working in Malta

• With 20 years free lanceing I was Team Leader of the PMT for WWTP (95 Mio €)

• Mt is a small market; no follow-up project• EU Member State with own agenda; I was

loyal to company values + to client ideas• Most southern EU state off Africa’s coast• My wife heads UNDP’s Arab Governance

Dept. with many insights into Arab world

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Morocco: AlgeriaTunesia: LibyaEgypt

JordanPalestinaIsraelSyriaLebanonSaudi ArabiaYemen

OmanQatarUAEBahrainIran

Sum of Arab: States (Indicators)

In Mediterraneanin EU Mem.StatesIn Germanyin GreeceIn Malta

5. Arab Upraising and Strategic Aspects

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Sum of Arab States Indicators

CountryTot. Population

+Non-nationals

Un-employ-ment

unem-ployed under 25

Below poverty line

GDP per capita

Years in power

Dic-ta-tors

Infra-struct. invest.

Infra. invest. abroad

GDP in Bn.

Morocco 34,000,000 10.0% 31.8% 15.0% 4,900$ 12 167$ Algeria 35,000,000 4,435$ 155$ Tunesia: 10,434,400 13.0% 3.8% 9,500$ 24 24 99$ Libya 5,770,585 350,000 14.0% 7.0% 13,800$ 42 42 84$ Egypt 80,000,000 8.9% 49.3% 20.0% 6,200$ 30 59 60 496$ 3Saudi A. 21,560,901 5,576,076 10.0% 23,701$ 1 48 643$ 1Yemen 20,975,000 10.0% 14.0% 45.0% 2,600$ 33 33 55$ UAE 995,119 3,980,474 4.0% 47,407$ 9.6 14.174 236$ 4Jordan 6,407,085 11.9% 13.3% 4,435$ 28$ Palestine 4,000,000 high high 2,900$ 12$ Israel 7,653,600 26,796$ 205$ 5Syria 22,457,763 high high high 2,958$ 11 41 66$ Lebanon 3,849,000 375,000 OK go abroad 9,479$ 40$ Oman 3,655,000 569,000 18,013$ 76$ Qatar 3,884,687 339,313 81,963$ 346$ 2Bahrain 3,977,081 246,919 5-9% 0.0% 40,000$ 12 12 169$ Iran 68,278,826 14.6% 18.0% 11,200$ 765$

332,899,047Sources http://www.oasiscenter.eu/it/node/6784

http://www.washingtonpost.com/wp-srv/special/world/middle-east-protests/http://en.wikipedia.org/wiki/Main_Page

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Selected Arab Countries

Country

Tot. Pop. In Mio.

+Non-nation. Mio.

Unem Tot.

ployed >25 y

<po-verty line

GDP / capita US$

Infra-struct. invest.

GDP in Bn.

Qatar 3.885 0.339 81,963 346 UAE 0.995 3.980 4% 47,407 9.6 236 Saudi A. 21.561 5.576 10% 23,701 643 Libya 5.771 0.350 14% 7% 13,800 war 84 Iran 68.279 15% 18% 11,200 765 Egypt 80.000 9% 49% 20% 6,200 60.0 496 Yemen 20.975 10% 14% 45% 2,600 55

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Discussion: projecting / investing; “Hinterland” / other synergies? In Mediterranean Countries: • EU e.g. Italy, Malta?• North Africa Arabic speaking countries?• Sub-Saharan Africa?

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New Challenges(1) Financial Crisis

(1.1) Infrastructure Investment(1.2) Inefficient Administration(1.3) Corrupt Administration

(2) Climate Change(2.1) Mitigation (Energy, Water)(2.2) Adaptation (Energy, Water)(2.3) Conservation (Water)

(3) Arab World (Uprising)(3.1) Oil Rich Countries(3.2) Mid-Income Countries(3.3) Least Developed Countries

The table serves to chritalize ideasIt is not: to calculate chances!

not even to grade (like in school)!a probability exercise!

Standard Biz = get more and more competition = competition on prices only = markets are saturated

New Biz = offers specialities, new chances, new profiles = new experts, new distinction = new spaces among firms of the "old boys"

Swot Analysis is a needed pre-requisitStrengths = only strong sides can be sold!Weaknesses = many weaknssses block the sell of services! (->partnering!)Opportunities = opportunities are always needed! (Fast follow-up is needed!)Threats = may spoil the business! (misunderstandings, etc.)

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In Sum: know your strength + partner, select market + staff + free lancer,

win the tender + profit from the project

Recommendations:1st years go with intenational partner firmThen go with one (or some) of the Constructorsafter 5 years office in a new country (with 2-3 projects); persue with local firms

--> own opportunities (with local partner) --> own studies, planning, supervision --> invite Contractors of your own choice

Threats: Stay out of "Conflict of interests in single cases"Language - misunderstandings (never without local partner)Different Culture, Laws, Taxes, Insurances, Systems, etc.

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In the Mediterranen

in North Africa:- Egypt- Moroccoin EU Member States:- Germany- Greece- Malta

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MoroccoAfter thousands of protesters demanded a new government and a constitutional monarchy, King Mohammed VI promised to reform them.• Population: 34 million• Unemployment: 10%; under-25: 31.80%• Below poverty line: 15%• GDP per capita: $4.900King Mohammed VI followed his father in 1999 His father Hasan II’s died in 1999. In power more than 12 years (incl. his father >xx years)

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TunisiaPresident Ben Ali was in power since 1987. The Country is since in a difficult post-revolutionary transition.• Population: 10.434.400• Unemployment: 13%• Below poverty line: 3.8%• Per capita income: $ 9.500In power since more than 24 years.

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LibyaColonel Muammar Gaddafi’s militias respondedwith violence to the people’s protests in Tripoli and Benghazi.• Population: 6.120.585• Unemployment: 14 %• Below poverty line: 7%• GDP per capita: $ 13.800Gaddafi has been in power since 1969. 42 years.

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EgyptPresident Mubarak resigned after 30 years in

power. The Country is controlled by the the army and an interim government.

• Population: 80 millions• Unemployment: 8.9 %; under-25: 49.3%• Below poverty line: 20%• GDP per capita $6.200In power 30 years (dictators since 1952; 59 years)

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Saudi ArabiaIn early 2011, King Abdullah answered the Arab upraising by giving asylum to President Zine El Abidine Ben Ali of Tunisia. To protests in S.A., King Abdullah gave benefits • for citizens amounting to $10.7 Bn. • (offset high inflation; aid to young unemployed; • aid to Saudi citizens studying abroad; • writing off some loans; state employ’s incomes increased • by 15 %, +cash for housing loans). • No political reforms were announced • Some prisoners (financial crimes) were pardoned.The royal family is in power since 48 years.

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YemenPresident Ali Abdullah Saleh offered after many days of protests and after many deaths to resign in 30 days, if he would get immunity. • Population: 20.975.000• Unemployment 10-14 %• Below poverty line: 45%• GDP per capita $ 2.600President Ali Abdullah Saleh is in power since 1978. Until 1990 Yemen was divided. He governed 33 years.

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UAEThe UAE has a constitution and a president, but itis neither a constitutional monarchy nor a republic. It is a federation of seven monarchies, whose rulers retain absolute power within their emirates. • Population nationals: 995,119• Population non-nationals: 3,980,474• The IMF determined a GDP of US$47,407• Unemployment 4%• Infrastructure investment 9.6 Bn US$• Infrastructure investment abroad 14.174 Bn US$

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SyriaThe Arab uprising sparked Syrian protests.Since 1963 Syria suffers emergency laws. President Bashar al-Assad mobilized the military

against protesters. • Population: 22,457,763• Unemployment: high• Per capita income: $2,958 Railway to Turkey has relat. good infrastructure

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Bahrain• The opposition takes advantage of the Shi’ite

protest to force the king to dissolve the government.

• Population: 1.234.596• Unemployment: 5-9%• Per capita income: $ 40.000King Hamad Bin Isa Al-Khalifa is since 1999 in power. More than 12 years.

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IranAn Islamic Republic since 1979 (the Shah’s expulsion).Demonstraters clashed with the police. The Foreign Affairs Minister condemned Libya’s “massacre of the innocents”.• Population: 68.278.826• Unemployment: 14.6%• Below poverty line: 18%• GDP per capita: $ 11.200Mahmoud Ahmadinejad is President since 2005; Imam Khamenei has been Supreme Leader since 1989. Since imam Khomeini’s death.

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Thank youTeşekkür

Reinhard HONERT

reinhard.honert@gmail.com Skype: honert, VOIP: 0049-2375-612360

Eg.-Mob.: 0020- 1-9813-0535