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Businessmen advise Kazakhstani consultants to dispose of their excessive ambitions
At the end of last year, Prime Minister of Kazakhstan, Serik Akhmetov, instructed the Minister of Industry and New Technologies, Aset Isekeshev, to prepare a programme for the development of domestic consulting.
"It is clear that these are global companies and we need to know their opinion. But we have not really even begun to address the issue of localising our consulting services. We need to pay particular attention to this," says Mr. Akhmetov. "We need technical personnel. We are on the path of forced industrialization. Diversifying our economy. We need dual education; we need vocational education. As indeed we are currently pursuing. There are goals to the programme, but nonetheless I know the employees of many consulting companies have been educated abroad and who have such an opportunity," emphasizes the Prime Minister. Interviewed by "Kapital.kz", industry experts support the premier's initiative (see "Kapital.kz» № 47 from 19th December 2013). However, the consumers of consulting services, namely domestic entrepreneurs, have made a few remarks of their own regarding this Government initiative.
Business has changed, says Saken Sadvakasov, project manager of "Kazakhmys" group of companies, it is no longer as young and naive as it used to be, and professional services are expected to be received - especially now that management positions are held by professionals who can set much more precise requirements, as recommended through consulting, and who are able to evaluate the results and the quality of services. Some were educated in the West, some have come from professional consulting backgrounds, and some have just worked for the company for a long time, step by step developing a sense of the market and solving problems that call for development and improvement in a competitive environment.
"Unfortunately, however, domestic consulting still relies on the fact that the market is complex, not always predictable, and we are unlooked-for here," observes Mr. Sadvakasov. Consulting is first of all the ability to analyse a situation and correctly define the problem. Secondly, it is the ability to analyse all the existing and available external expertise and offer a range of viable solutions. For this reason, Serikbay Bisekeev, president of "Arman Holding" group, believes there are limitations on those who can claim to be consultants. Consultants should possess analytical skills and the ability to work with material, with facts, and the ability to ask questions. In addition, they need to have varied and actual experience, ideally global, which will enable them to avoid reinventing the wheel or repeating the mistakes of others. "This is why I always look at what a person is really capable of, at what he has already achieved, his own personal experience, how he thinks and reasons," specifies the expert.
In Mr Bisekeev's opinion, it is also important that the views of consultants correspond with the company's corporate culture. The consultant should be perfectly suited to you and understand your goals, your philosophy. He will then be able to substantively enrich your knowledge and propose solutions that are best suited to your business.
"If I had to choose consultants for a business in Kazakhstan, then I would select those with diverse international experience; those who have access to international practices, but have already applied it in Kazakhstan - who understand the local specifics and have a good sense of the country," remarked the president of "Arman Holding" group.
According to business representatives, in order for domestic consulting agencies to improve the quality of services rendered, it is necessary for them to engage real professionals who know their subject. "Obviously they have to be paid more, but in my opinion, when meetings are attended by experts that are only able to give quite general answers to pertinent questions, doubts are immediately cast on the abilities of the company as a whole," said Mr. Bisekeev.
In addition, he believes it is necessary either to create one's own specific methodology, which is much more difficult, or to adopt proven practices that are already on the market and have been used by western companies for many years.In the words of business representatives: consulting companies should actively participate in all public events, to talk about themselves. "And, of course, they should possess a charismatic leader, who is able to express ideas competently and show the capabilities of the company," stresses Saken Sadvakasov. Each consulting firm should have an internet portal, a forum for people to contact companies in order to locate the services they require. A place where enterprises can become acquainted with consulting firms. "And the most important thing is to dispose of any excessive ambition and arrogance that we know better what the client needs, or we do it better than anyone else... Be the modern representatives of consulting in Kazakhstan: do everything professionally and on time, without delay - even regarding matters that require a straightforward answer," said Mr. Sadvakasov.
Companies providing IT architecture servicesThis market is quite specific, and the design of IT-based business solutions requires specialised knowledge in areas that are often difficult to understand. A heterogeneous group, whose ranks include various levels and categories. Some are made up of two or three friends - IT professionals, up till the point where one of the major IT-trading players, for whom setting up IT-infrastructure is merely a passing business, is drawn to them and recruits them or proposes that the company work as database administrators or something like that. Nevertheless, the market is evolving and it is possible that by merging various smaller companies, or by developing the approaches of major retail IT-companies, new levels of quality will be attained.
There is development here and the prospects are understood, but to date the market is still not active in terms of marketing initiatives. Although, by virtue of the market limitations and an inclination to employ the services of a domestic provider, on average companies still prefer to seek out a local partner. The small and medium-sized enterprises have been clinched, but the larger market is still wary of local companies and not prepared to enter into long-term contracts. However, on an ad hoc basis even large businesses may invite participation in their projects. This is due to the fact that, despite their mistrust of local experts, inviting someone from another country would be strange - especially since the market price for such services is quite competitive.
Conclusion: sooner or later the demand in this market will be met, so it is necessary to wait for the next generation of programmers and IT-architects, of whom there should be many more, since IT-technology is evolving rapidly and among young people it is very, very attractive.
Companies implementing various IT-solutions for business applicationsThe application is large and diverse in its nature and structure.First of all, 1C. This is a Russian ERP software program for small and medium-sized businesses. Here everything is clear, there are almost no alternatives: you're either with us, with Kazakhstani companies, or without anything at all. The level of these companies is roughly the same, since their self-customised solutions automatically imply that almost no one else besides the company's specialists will figure them out; it provides lifelong support for companies, like an insurance policy that guarantees every year a certain amount of money will trickle in, even when no other projects are being implemented. Nevertheless, the market is well developed and solutions can always be found that satisfy both requirements and budget. Internally, there is a certain sense of clannishness and insularity that often prevents companies from building adequate relations with each other. All of these constraints on market development have forced local companies to focus more on educating their own specialists; in much the same way, the profession of "1C specialist" is already much less popular than it once was. Similar to the previous group, there is still a dying breed of freely-roving freelancers whose work varies in quality and price. All the same, the market is already fully developed and self-sufficient. Observations reveal that some 1C companies have begun to open up other areas of development, indicating quite a mature attitude to the market and its evolution.
Secondly, IT-companies implementing other ERP software solutions. This is an interesting group, but unfortunately, not yet fully self-sufficient. In principle this is understandable, since the majority of their systems have not been developed in Kazakhstan - meaning that any modification or maintenance requires the direct involvement of the parent company. This is of particular importance, since the decisions a business makes about implementation are most often the result of internal factors that may not always be clear to IT-companies. The market is prospective. The main thing is to find a system that is trending in business, and to prepare one's own team of consultants. The market will always be in existence and develop gradually; the future is quite rosy, but any talk of self-sufficiency is plainly out of the question.
Thirdly, IT-companies implementing other IT-business applications. Overall, this market is almost identical to the previous group, but with a number of particular features. Uniquely to this group, the role of a charismatic and competent salesperson is absolutely essential. Someone who can influence decisions when one or another system is being selected. Unfortunately, as yet there are no real leaders who are able to promote such services. It may be necessary to find some kind of marketing solutions, to participate in various public events and workshops, to somehow offer services more proactively - to conduct market research and possibly, like show-business stars, to travel to provincial regions and arrange meetings with potential partners in the field. Anything is possible. At the moment, company regional directors are in need of IT-solutions, but they do not yet see specialists who are able to embody all the needs and desires of real-world projects. Shortage of information is one of the main problems of the market in Kazakhstan.
Companies providing services related to business processes, etc.This is real business consulting - the main battle for the patronage of Kazakh companies is being fought right here. A wide range of companies are included - from the world-renowned to smaller ones specialising in specific industry solutions. This market is completely dependent on companies, with almost no competition. There are industrial giants, monsters, around which small consulting companies are constantly flocking, providing them with exclusive services. Each corporation has its own set, and more often than not these companies are specially designed to meet the requirements of a particular client. At the same time, the services provided by these consulting firms are more likely to be related to the specific nature of legislation in Kazakhstan, and not related to the projects themselves.
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