'Basics, Not Brain Surgery' Key to IT Business in Latin America Says DTS CEO Parra.

MIAMI and SAO PAULO--(BUSINESS WIRE)--Dec. 8, 1998--As founder, president and CEO of DTS Software Latin America, the leading value-added distributor of Application Development Solutions (AD Solutions) throughout Latin America, Fernando Parra is often asked how U.S. companies can best enter and prosper in the market there.

"While American IT has dominated many world markets," Parra says, "Latin America remains a bit of a mystery. When asked about the key to success, I say it's basics, not brain surgery, as it is elsewhere." Parra's company began in 1983 as a programming service, programming in COBOL for mainframes in such companies as Lloyds Bank, IBM, and Citibank. Recognizing the needs of other growing public and private sector organizations, he "transitioned" the business to become a value-added distributor, offering support, training and "all the services that make the difference between a one-time sale and a loyal, happy customer."

Expanding Through Latin America

The growth of DTS in Parra's native Brazil continued by what Parra calls "more basics -- paying attention to customers' needs and not just focusing on the software we wanted to sell." With the market for application development software growing throughout Latin America, DTS began international expansion in 1994, "leveraging experience and knowledge gained in Brazil." Starting with Chile as a pilot program, it then opened offices in Argentina, Colombia, Venezuela, Peru, most recently Mexico City, while establishing North American headquarters in Miami and basing Latin American operations in Sao Paulo.

Parra says a basic ingredient in his recipe for success is "always being aware of clients' requirements, making sure DTS has the software and support services they need. "By selling total solutions as well as products," he says, "we build customer confidence and pave the way for additional sales." DTS recently added Eastman Software and CADAS Software to its product line, and has posted record sales for Micro Focus, its INTERSOLV(R) acquisition and Novadigm.

"We are proud leading companies continue to choose DTS as their Latin American partner," says Parra. "DTS brings the strengths of being in the market for a long time and having established relationships with most major IT customers. Of the top 50 banks in Latin America, nearly 80% are DTS customers; the others are in Mexico, one of the reasons we recently established an office there."

Strict Criteria for Choosing Vendors

Parra says part of DTS's success can be traced to its "strict criteria" for choosing vendor-partners. "As companies wanting to come to Latin America need to do their homework to find partners and market niches, we also have criteria for choosing vendors. We want them to have a new or best-of-breed technology that IT managers want, and which complements -- and is synergistic with -- our product line.

"We prefer partners with proven track records in the U.S. and who generally have less than half their sales internationally, indicating they are not fulfilling the potential of the global market." He says DTS also has had agreement with start-ups, "but it's best when the company has ongoing revenue growth."

Another basic ingredient to Parra's success is implementing "a complete marketing effort" with DTS becoming a vendor's virtual sales division in Latin America. "We introduce products, perform all marketing activities, find and close sales, establish first line technical support, and do customer training and implementation," he says. DTS also provides regular pipeline and forecast reports and assigns a business manager to each vendor's product line with responsibility for supporting all sales needs. And, Parra says, DTS participates in vendors' sales meetings and brings customers to their user conferences."

The only requirements DTS has of vendors to become their master distributor in Latin America, Parra says, is staff training, second level technical support, and a good price. "Then," he says, "we take over, providing a single point of contact so they don't have to deal with different languages, currencies and different sets of rules and regulations in each country. We'll do everything we can to make sure the partnership works."

Local Sales Expertise

Parra says DTS's vendors benefit from account managers who cover major accounts, field sales for mid-level accounts, telesales, and resellers with geographic or vertical market focus. "We do everything," he says, "and we don't charge for these services - we just need good margins. Besides, "if we started charging it would complicate matters ('getting away from basics') with time -- and maybe sales -- lost!"

Basic Advice for Newcomers to Latin America

As advice for newcomers to Latin America's growing IT market, Parra returns to basics. "Find a local partner you trust, who knows and is respected in their market, and who has technical and sales expertise. It's also important to find a company that actually pays you. This may sound crazy, but I know of vendors who found supposedly-reputable distributors who didn't report all sales and the vendor never saw any money. Vendors have to do their due diligence!"

Parra reminds companies wanting to enter Latin America that they can sell in local markets without localizing products. "Software development tools that are mainly for the enterprise don't need to be localized," he says. "In fact, most IT professionals in Latin America speak and read technical English.

Man on a Mission

Parra adds that "one of his goals is to convince U.S.-based software vendors to enter the Latin American market. They seem to be focused on Europe," he says. "Latin America has long been viewed as difficult to enter, but with globalization it has become a big and growing market offering tremendous opportunity. Brazil has a fairly mature market, but growth in other Latin American markets is great. Individual markets may look small, but together Latin America market is very big and very lucrative."

DTS Software Latin America (www.dtslatin.com) is the leading value-added distributor of Application Development Solutions (AD Solutions) throughout Latin and South America, offering sales, marketing and support, plus installation, training and implementation services. DTS has its international headquarters in Miami, its South American headquarters in Sao Paulo, Brazilian offices in Brasilia, Rio de Janeiro, and Porto Alegre, other major facilities in Buenos Aires, Bogota, Caracas, Lima, Mexico City and Santiago, and resellers in all major business centers in Latin and South America and the Caribbean. DTS has achieved an enviable record of growth: In 1997 it surpassed $28 million in sales, more than doubling the previous year's revenue; in 1998, spurred by an exponential increase in software development in its marketplace, year-to-date revenue through October is $32 million, well on the way to DTS's projected $40 million.

Editors Note: Fernando Parra can be reached at: [e-mail]