UK headquartered components and software distributor VIP Computers, has announced it is preparing a controlled exit from the cut-throat Middle East distribution sector, three years after the company opened a subsidiary in Dubai.
In 2010, the company set up an office in Dubai'sJebel Ali Free Zone from where it targeted channel partners in the Middle East, Africa and South Asia. At the time, VIP Computers said it intended to provide "focused" distribution solutions to clients across the region by partnering with select manufacturers.
Although the company didn't speficify when it will wind up its operations in the region, it confirmed in a statement to Channel Middle East, that: "The shareholders and management of the VIP Computers Group have decided to make a controlled exit from the MENA and South Asia markets. The move reflects the company's desire to redirect resources and increase focus on core markets across Europe and the US, where the group is positioned as a system manufacturer and a broadline distributor."
The company also stated that the MENA and South Asia operation of the VIP Group, based out of Dubai has remained profitable after its first year on the market and was able to build recognition and a sound reputation within a short period of time.
According to the company, Harprit Singh, managing director, will be joining a key vendor partner of VIP Computers MENA and South Asia, headquartered in the Netherlands. The company added that Singh will ensure that the team can continue to provide business continuity to the customer base in the region.
The company pointed out that all after-sales support to customers of VIP IT Trading JLT will continue to be provided by VIP Computer Centre Limited, UK.
VIP, was established more than two decades ago and has operations in Spain, the Netherlands, Romania, Taiwan, and the US as well.