www.unido.org
www.unido.org
How to Integrate
African Companies into the
Global Value Chain:
The Role of UNIDO SPX Centres
3DWULFN-*LODEHUW
63;63;3URJUDPPH0DQDJHU
81,'2+HDGTXDUWHUV9LHQQD$XVWULD
-XQH
www.unido.org
UNIDO GLOBAL NETWORK
UNIDO Field Representation: UNIDO is represented in 36 countries
UNIDO field representation comprises
• Regional Offices (11) in: Colombia; Egypt; Ethiopia; China; India;
Lebanon; Mexico; Nigeria; South Africa; Thailand; and Uruguay,
• Country Offices (19) in Algeria, Bolivia; Cameroon; Cote d'Ivoire;
Ghana; Guinea; Indonesia; Iran; Kenya; Madagascar; Morocco;
Pakistan; Philippines; Senegal; Sudan; Tanzania; Tunisia; Vietnam;
and Zimbabwe, and
• Focal Points (6) in: Mali, Burkina Faso, Mozambique; Sri Lanka;
Togo; Uganda
UNIDO Liaison Offices in New York, Geneva and Brussels maintain onthe-spot contacts with Member States and the other United Nations
organizations / European Commission based there.
www.unido.org
UNIDO GLOBAL NETWORK
Other Field Offices
UNIDO has a number of offices worldwide:
• 21 Investment and Technology Promotion Offices (ITPOs), four
Investment Promotion Units (IPUs),
• 30 National Cleaner Production Centres (NCPCs), established by
UNIDO and UNEP,
• 10 International Technology Centres and
• 44 Subcontracting and Partnership eXchanges (SPXs) at various
stages of development, that work closely with the Investment and
Technology Promotion Offices.
www.unido.org
BELGIUM-Walloon region
SWITZERLAND-Zürich
POLAND-Warsaw
Russian FederationMoscow
U.K. -North-West
RER.OF KOREA-Seoul
FRANCE-Paris
JAPAN-Tokyo
GREECE-Athens
TURKEY-Istanbul
FRANCE-Marseille
ITALY-Rome/ Bologna
CHINA- Shanghai
BAHRAIN-Manama
BRAZIL,
Pernambuko-Recife
ITPO
IPU
Associated
Office
Investment
Promotion
Units
CHINA- Beijing
EGYPT (Cairo)
JORDAN (Amman)
MOROCCO (Rabat)
TUNISIA (Tunis)
UGANDA (Kampala)
Investment and Technology Promotion Offices
www.unido.org
44 SPXs in 32 countries
Industrial Subcontracting and
Partnership eXchanges (SPXs)
www.unido.org
www.unido.org
UNIDO SPX Programme
www.unido.org
What is an Industrial Subcontracting
and Partnership eXchanges (SPX) ?
“An SPX is a centre for technical information,
promotion and the matching of capacities, processes
and production or industrial service specialities, in the
form of an autonomous structure whose basic purpose is
to help bring together enquiries for and offers of
subcontracting work and outsourcing.”
Supplier
Supplier
SPX
SPX
Subcontractor
Subcontractor
subcontracting
subcontracting
Main
Main
contractor
contractor
Warehouse
Warehouse
Distributor
Distributor
Client
Client
www.unido.org
Institutional Set-up of SPX
PRIVATE (CHAMBERS/ASSOC./FED) 50%
MIXTE (PRIVATE & PUBLIC)
38%
EXCLUSIVELY PUBLIC
12%
www.unido.org
44 SPXs in 32 countries
Industrial Subcontracting and
Partnership eXchanges (SPXs)
www.unido.org
UNIDO Global Outsourcing Network
In America:
18 SPXs in 15 countries
BOLIVIA:
- BSA-Fundacion, La Paz
- BOLSICRUZ-CCI, Santa Cruz
BRAZIL:
- BSI&N-SEBRAE, Sao Paolo
MEXICO:
- Red Mexicano de BSA, BEPIQ, Queretaro
- BSPI&DP-CAINTRA de Nueva Leon,
Monterrey
(Mexican SPX Network also include: BSIMCIMEG de Jalisco, Guadelajara, CEPED,
Chihuahua, MOLTRO, Queretaro)
-Etc…
www.unido.org
UNIDO Global Outsourcing Network
In AMEA Countries:
17 SPXs in 13 countries
MAURITIUS:
ALGERIA:
- SUBEX-M, Port Louis
- BASTP-Centre, Alger
MAROCCO:
- BSTPE- Est, Constantine
- BNSTP-M, Casablanca
- BSTPO-Ouest, Oran
- BSTPS-Sud, Ghardaia
SENEGAL:
COTE d’IVOIRE:
- BNSTP-S, Dakar
- BSTP-CI, Abidjan
TUNISIA:
-BNSTP-T, Tunis
GHANA:
LEBANON:
- SPX-AGI, Accra
- BSTP/SPX-L, Beirut
MADAGASCAR:
QATAR:
- BSTP-M, Antanarivo
- SPX GOIC
www.unido.org
UNIDO Global Outsourcing Network
In AMEA Countries:
17 SPXs in 13 countries
FRANCE:
- COSTEP, Auxerre
- BSTE, Nancy
SLOVAKIA:
- SPX-SES, Bratislava
TURKEY:
- Turkish SPX, Istanbul
www.unido.org
UNIDO Global Outsourcing Network
SPX-Turkey
Winner of the
Best Small Business Project Award 2003
3rd World Chambers of Commerce Congress,
Quebec, Canada
Most innovative project undertaken by
chambers of commerce around the world
www.unido.org
UNIDO Global Outsourcing Network
In Asia and Russian Fed.:
9 SPXs in 4 countries
CHINA:
-SPX Chongqing, - SPX Beijing,
-SPX Shanghai
INDIA:
- National SPX Network, New Delhi
- SPX-CII, New Delhi
- SPX-CII, Pune
- SPX-CII, Hyderabad
- SPX-KASSIA, Bengalore
(members of the Indian SPX network
also include - SPX-SISI, Chennai,
SPX-IAT, Ludhiana, SPX-ESC, New
Delhi)
SRI LANKA:
RUSSIAN Fed.:
-SPX-SL, Colombo
-International Center for Subcontracting and Partnership,
ICS, Moscow
www.unido.org
SPX sector distribution
More than 10,000 suppliers audited and
registered following UNIDO’s methodology
M etal
56%
Others
7%
Services
10%
Textile
10%
Electro
7%
Plastic
10%
www.unido.org
www.unido.org
www.unido.org
The way forward
Supplier
Supplier
Subcontractor
Subcontractor
Main
Main
contractor
contractor
www.unido.org
Building-up the Supply
Strong demand for New SPXs Centres:
Russia (Vladivostok, Khabarovsk),
Kazakhstan,
China (Harbin, Xi’an, Quanzhou),
France (Marseille),
Africa: Burkina Faso, Mali, Madagascar, Cameroon,
Congo, Nigeria, Uganda, South Africa, Mauritius,
Iran, Colombia, Haiti
Existing SPXs in Beijing, Chongqing (China)
and Doha (Qatar) have also requested UNIDO’s
technical assistance for a project phase II.
Supplier
Supplier
Main
Main
contractor
contractor
www.unido.org
Building-up the Supply
SPX Networks development 2007
• Algeria – Tunisia SPX Network (Algiers, Oran, Constantine,
Ghardia and Tunis)
• Gulf Countries SPX Network (6 GCC countries)
• India SPX Network
• All China SPX Network
• West Africa SPX Network
• Latin America SPX Network
• “UNIDO SPX World-Wide Network”
Supplier
Supplier
Main
Main
contractor
contractor
www.unido.org
UNIDO SPX NETWORK IN CHINA
Six SPX centres strategically located on dynamic regions in the country
1. SPX Chongqing, at Chongqing Technology Exhibition Centre
2. SPX Beijing, at Beijing Productivity Centre
2
4
3. SPX Shanghai, at Shanghai Industrial Inv. Corp. (SIIC)
4. SPX Harbin, at China Harbin Fair for Trade and Economic
Cooperation
List of UNIDO SPXs, as of 25 January 2006
5. SPX Guangzhou, counterpart to be selected by the Economic
and Trade Commission of Guangzhou Municipality
6. SPX Xi´an, at the Xi´an Productivity Center
6
3
1
5
www.unido.org
Building-up the Supply
UNIDO Global Outsourcing Network
1) similar nodes
=
UNIDO SPXs
2) same software
=
new OUTSOURCING 2006
3) same language
=
Industrial Nomenclature
4) communication
=
UNIDO 2006 SPX WEB PORTAL
5) information flow
=
Inquiries + Opportunities
6) synergies
=
ITPOs, NCPCs, privileged partners
Supplier
Supplier
Main
Main
contractor
contractor
www.unido.org
www.unido.org
http://www.unido.org/spx
www.unido.org
www.unido.org
www.unido.org
www.unido.org
THANK YOU
Patrick J. Gilabert
SPX Programme Manager
UNIDO
E-mail: [email protected]
Tel: 43 - 1 - 26026 6414
Fax: 43 1 - 26026 6806
www.unido.org
Global Outsourcing Trends
Extracted from Raj Blogs
http://rgarg.blogspot.com/2005/10/humor-outsource-to-india.html
Setting up….
www.unido.org
Global Outsourcing Trends

India remains the best offshore location by a wide margin

Improved infrastructure and relevant people skills have increased
the attractiveness of China as a low-cost option for servicing Asian
markets

Thailand jumped from 13th to 6th in this year's Index

Offshore attractiveness in Europe continues to migrate eastward as
Bulgaria, Slovakia and Romania as well as to Turkey.

The Middle East and Africa appear to be the next frontier in
offshoring as countrie
Source: AT Kearney 2005
www.unido.org
www.unido.org
The Benefits of Outsourcing
www.unido.org
Issues and Risks
Costs:
Total Costs = Planned Offshoring Costs + Hidden
Costs
Search and contract
1 to 2%
Restructuring
Communication
Process Changes
Cultural Differences
Loss of Productivity
Travel
Governance
3 to 5%
1 to 3%
0 to 10%
2 to 3%
3 to 27%
2 to 3%
1 to 2%
Total (including extras):
17 to 80%
Data combines Meta
group and CIO magazine
estimates
Table data: Levina, N. IT Outsourcing, IOMS, Stern School of Business, NYU, 2006
www.unido.org
Issues and Risks
Potential Risks
2005: Premature termination of outsourcing relationship: 51%.
1
60% of organisations that outsource will encounter defects and
hidden costs. 1
Yet….
Forecasted 20% annual growth of outsourcing through 2008. 1
1.
RTTS Services: Outsourcing Statistics, 2005 – http://www.rttsweb.com/services/outsourcing/stats.cfm
www.unido.org
Issues and Risks
Subcontracting in USA
Subcontracting = 300 billion US$ / year of Turnover
1,600,000 enterprises are subcontracting out
More than 30 % of Large enterprises are outsourcing
more than 50% of their production, under subcontract
Source: AT Kearney 2005
www.unido.org
THANK YOU
Patrick J. Gilabert
SPX Programme Manager
UNIDO
E-mail: [email protected]
Tel: 43 - 1 - 26026 6414
Fax: 43 1 - 26026 6806