At a time when other IT companies are downsizing their operations in Saudi Arabia and the Arab world, Computer Associates International (CA) has decided to set up direct operations in the region. CA is a leading worldwide provider of solutions and services for the management of IT infrastructure, business information and application development. CA’s desire to establish a direct presence — compared to its previous business model of working through partners — signals a clear change in the company’s strategy toward Arab countries. The company has started operations at its regional headquarters in Dubai Internet City and is currently finalizing plans for its offices across the region.
Gilbert Lacroix has been appointed vice president and general manager for Computer Associates operations in the Arab countries. Lacroix joins CA after 10 years with Intel. Lacroix has long been a supporter of business and technology development in the Arab world. With Intel making the choice to downsize its Middle East operations, Lacroix decided to move to an IT company interested in supporting the Middle East market, rather than transfer to Intel’s European operations.
For the past 10 years, CA has worked through its partners in the region to help customers meet their IT management challenges. Some of the most complex technology infrastructures in the region now rely on CA’s security, storage and IT infrastructure management solutions. The company has also invested in community related programs aimed at expanding ICT knowledge among Arab youth. In his new position, Lacroix aims to strengthen CA’s presence in the Arab countries and turn the company into a driver for regional technology development.
“We will be having two levels of interaction with the Arab countries,” said Lacroix. “Tier One will be direct interaction where we will work with value added partners and major private enterprises and governments. At Tier Two will be our interaction with partners who buy from distributors and address the small and medium sized businesses. We will be improving our relationship with this channel and supporting them through marketing and market education.”
Lacroix emphasized that CA has never had a direct presence in the region before and that some vendors who have been presenting themselves as CA are in reality only local partners.
“I have to work to correct the perception of CA which has been created in some cases by vendors selling CA products,” Lacroix said. “These companies are not necessarily doing a bad job, but sometimes they were either overdoing things or putting out the wrong message. Some of these firms have even be using CA branding in an improper manner, which confuses the market. With a direct market presence we will quickly be moving to let companies know that we are here and they can count on us.”
In an immediate show of its commitment to customers, CA has invested in resources that allow its users in the Arab world to start a direct dialogue with the company. Customers from across the region can contact CA through its newly established customer support center in Beirut. Shortly, local information desk telephone numbers will be available across the region.
“We are making a very strong commitment to our customers in Saudi Arabia,” said Lacroix. “Muhammad Akkad has been appointed CA country manager for Saudi Arabia. He is working out of our office in Riyadh’s Kingdom Tower, which is already open. Before the year end we will be opening offices in Jeddah and Alkhobar, too.”
Lacroix and Akkad are already making plans to link CA’s Saudi offices with local universities.
“Our strategy across the region will be to create relationships with local universities and then recruit from those universities. Initially we will invite students in their final year of studies to join us for a few months in a mentoring arrangement. Then, when they graduate, some of those students will be offered positions with CA. We also plan to make available some of our highly specialized CA technical team members for special lectures and presentations in cooperation with local universities.”
Not only will CA be working with local universities, but the company is already in contact with Arab IT companies for localization of its solutions. Lacroix said his goal is to fill every position in CA’s operations in the region with a qualified Arab.
“We are recruiting Arabs to serve our customers in the Arab world,” he said. “When you speak the language of the country and you understand the culture, you can better serve the local needs.”
Of course, CA’s regional offices in the Arab countries are part of the larger CA global operations and those operations have been under scrutiny from the US Government’s Department of Justice and Securities and Exchange Commission. All of CA’s top management have been replaced. The firm’s former general counsel has pled guilty in US Federal Court to conspiracy to commit securities fraud and obstruction of justice. Three other former CA executives pled guilty to federal charges in April. Now, former CA CEO Sanjay Kumar and Stephen Richards, head of Worldwide Sales, have been indicted on 10 counts. The two executives have entered not guilty pleas to the indictment. CA has agreed to pay $225 million in restitution to its shareholders in a settlement that allows the company to defer criminal prosecution.
Discussing CA’s current legal problems, Lacroix was matter of fact. He pointed out that a number of other major players in the IT industry have been through difficult times involving legal action. He feels that the management changes have brought new attitudes and strategies to the fore in the company.
“CA is making the right decisions now in regards to their legal problems,” Lacroix said. “The people involved in those actions are no longer with the company. CA has already decided to compensate its shareholders and to put checks in place to ensure this never happens again. I personally am with the company today because of the change in management. The new management has a new approach to the market and my direct presence in the Arab world for CA is part of that strategy.”
“I am quite comfortable with CA’s products,” Lacroix said. “In a number of areas I am certain that CA can become the market leader. For that to happen we need to position our products appropriately and support our customers at the level they expect to be supported. Investors and analysts are quite positive about our global situation now and our stock is going up. I can assure you that the future for CA in the Arab world is bright.”