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
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