Leasing business automation — where Russia is different
Dmitry Kurdomonov, Managing Director of Homnet Leasing
When setting up representative offices abroad, international leasing corporations install software solutions at an early stage. It would seem that the simplest solution is to implement in affiliate companies the same information system as in the parent organization, but in practice, most international leasing companies apply a different approach — they choose a solution from a local provider
An attractive market
Today, a large number of western companies are represented in the Russian leasing market. For example, ARVAL (BNP Paribas affiliate, France), IVECO Capital (Italy), MAN Financial Services (Germany), Cisco Capital (USA), De Lage Landen (Netherlands) and many others.
Transnational leasing companies’ interest in Russia can easily be understood. Russia’s leasing market is rapidly growing, doubling in size every year since 2000, and now it is in the top 10 of the world's largest markets. So it would be quite logical to expect new players to enter Russia in the near future. In common, these companies are highly experienced and actively implement IT systems, tending to install an integrated leasing management system at an early stage. Nevertheless, most often large corporations do not transfer the enterprise resource planning (ERP) systems implemented in the head office, but prefer to implement in Russia a local software solution. Why is this so?
The difference between Russia and other European countries
There have been some dramatic failures for western software providers that have tried to implement their systems in Russia in the last 10 years. Reasons include:
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According to the market potential and Russian-specific characteristics as noted above, it seems sensible to treat Russia and CIS as a specific region that needs a special approach and its own software solution provider. The majority of successful international players that operate in Russia follow this strategy.
For example, over 60% of all implementations of integrated information systems in Russian leasing companies are realized by Homnet Leasing. It is no surprise that this developer’s solution was chosen by most international leasing corporations to automate their representative offices in Russia. Transnational leasing companies apply pragmatic IT policies. They are ready to consider different options for their foreign offices’ automation, but in most cases they expect to have a strong local partner with specific regional knowledge that can provide a reliable software solution for leasing contract management.
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