Domestic infrastructure consultants are setting their sights on the rising number of projects available abroad, in particular the region of the Balkans, according to the April 26 edition of Business Construct monthly.
The main objective of the consultants is to gain experience by providing their services on foreign markets, rather than increase their profit. By winning foreign contracts, in the future Romanian companies improve their credibility when dealing with important tenders within the infrastructure sector.
Within a few years, the situation in the Balkans will be similar to that of Central Europe before and after EU integration in 2004, when most foreign companies opened local subsidiaries following the track of European funds. Balkan states, such as the countries belonging to the former Yugoslavia, will be tempting for companies operating on the infrastructure market, in the same way that companies are attracted to Romania and Poland.
At present, there is no serious question on the profitability of the domestic market, which is comparable with non-EU states in the region, or states just beginning the process of EU integration. In the long run, for many consultant companies gaining experience is a vital asset when it comes to competing for major projects, allowing them to meet the conditions of contract and the customers' requirements.
"We cannot just remain operating domestically. For instance we must see what's happening in Hungary, and must go to markets where we can gain experience. We cannot remain isolated in Romania," explains Gheorghe Boeru, chairman with Romair Consulting, an infrastructure consultancy. The company he runs targets, as part of its development policy, projects in Hungary, Ukraine or states belonging to the former Yugoslavia, which share similarities with the domestic market.
Beyond the need to keep informed with the latest developments in the field, work on a foreign market also involves, in some cases, the freedom of making a mini-experiment, where one can apply a new strategy, being protected by a domestic portfolio that allows one to further invest in the development of the company.
The stages of a possible expansion are the same as those experienced by foreign companies entering the Romanian market. The first step for a company is to become acquainted with the local market, learning the language followed by a familiarisation with the necessary legislation and identifying the priorities of central or local authorities'. "Developing on a foreign market based on a strategy of gaining capital is one thing, while entering a foreign market to deal with projects that can bring solid profits, what I call fishing policy, is an entirely different thing," says Michael Stanciu, chairman with the Search Corporation.
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