Client Background: Azure Computers is a global leader in providing IT solutions and services, particularly tailored for the financial services industry. Their expertise spans a wide range of offerings, from e-banking and payment gateways to custom software development and outsourcing services. Headquartered in the USA, Azure has a robust presence in global markets, including the UK, Singapore, Australia, and India. Seeking to capitalize on the rapidly growing ASEAN market, Azure identified Thailand as a strategic gateway to expand its services across the region.
Problem: Azure’s management was well aware of the immense potential in ASEAN markets but lacked the local expertise and resources to navigate the region’s complex regulatory framework. Thailand, being a hub for finance and technology in Southeast Asia, was the ideal entry point. However, Azure faced several challenges:
- Regulatory Complexity: Understanding and complying with Thailand’s business laws and tax regulations was a daunting task for the company.
- Market Entry Strategy: Azure required detailed market research to identify opportunities, assess competition, and determine key client sectors.
- Talent Acquisition: Finding skilled professionals in Thailand with expertise in IT outsourcing and financial technology was another major hurdle.
- Local Partnerships: Azure needed help establishing relationships with financial institutions, which were their primary clients, to build trust and credibility.
The company was also under pressure to achieve profitability quickly to justify its investment in the region. They needed a partner who could provide comprehensive support, from market entry to daily operations.
Solution: Startup in Thailand partnered with Azure Computers to create a robust strategy for market entry and growth in Thailand. This collaboration involved a step-by-step approach to tackle Azure’s challenges effectively:
- Market Research and Strategy Development:
- Conducted an in-depth analysis of the financial technology landscape in Thailand, including identifying major players, customer pain points, and areas of demand.
- Defined Azure’s unique value proposition to differentiate them from existing competitors.
- Regulatory and Legal Support:
- Helped Azure set up a joint venture company in Thailand, ensuring compliance with local laws and taxation systems.
- Facilitated the acquisition of necessary permits and certifications, especially for IT outsourcing operations.
- Infrastructure and Talent Acquisition:
- Provided fully equipped office space in Bangkok to enable Azure to start operations quickly.
- Assisted in recruiting a team of skilled professionals, including IT specialists, project managers, and sales executives.
- Ensured the team was trained to meet Azure’s global standards in service delivery.
- Business Development and Partnerships:
- Leveraged existing relationships in Thailand’s financial sector to introduce Azure to potential clients, including banks and financial institutions.
- Supported Azure in securing initial contracts for e-banking solutions, IT outsourcing, and custom software development.
- Outsourcing Expertise:
- Designed a framework to enable Azure to offer comprehensive IT outsourcing services, including web development, application management, and technical support, to Thai financial institutions.
- Ongoing Support:
- Provided business advisory services to help Azure fine-tune its operations and scale its services efficiently.
- Supported Azure in creating marketing materials and participating in local IT and fintech exhibitions to raise brand awareness.
2. Success: Within 8 months, Azure achieved its break-even point, driven by successful contracts with key financial institutions in Thailand. The company grew its local revenue base through a combination of outsourcing projects, custom software development, and long-term service agreements.
Over the next seven years, Azure’s operations in Thailand expanded significantly, with the company generating $5 million in annual revenue. The local branch became a central hub for Azure’s ASEAN operations, allowing them to serve clients not just in Thailand but across neighboring countries such as Vietnam and Cambodia.
Azure Computers’ success underscores the importance of having a strong local partner for market entry. The company is now recognized as a trusted IT outsourcing provider in the region, and its Thailand branch continues to contribute significantly to its global growth.