A SOFTWARE firm is expanding to gain a foothold in lucrative Asian emerging economies.

Indigo Software, which supplies computerised warehouse management equipment, has set up a base in Hong Kong.

Bosses say the venture, which will operate as Indigo Software Asia Pacific (APAC), will help business' cut costs by reducing their dependency on paper-based administration and provide Indigo with greater access to China, the Philippines, Indonesia and Vietnam.

The company, headquartered in Durham City, said its expertise will be particularly useful in clothing and footwear manufacturing, as the industry is dominated by mid-sized operations using pen and paper to monitor warehouses.

Peter McLane, Indigo managing director, said China's increased production costs and workers' wages means firms are looking to save cash, thus presenting plentiful opportunities for his company to take a strong hold of the market.

He also said the endeavour will add to existing deals in Asia and the Pacific, most notably in New Zealand and Australia, where Indigo supports distributor Bunzl and new Homebase owner, Wesfarmers.

Mr McLane revealed APAC will be led by managing director, Mike Hill, who has more than 35 years’ experience in software development and has spent in excess of 25 years working in Asia.

He added: “A proven software solution such as ours represents an ideal option for Asian manufacturers in established markets such as China, plus new emerging trade zones like the Philippines, Vietnam and Indonesia.

“The base of leading UK manufacturers (already using it) gives potential customers the reassurance of a high-quality solution.

“With the local support of a new Asia Pacific office, we can implement quickly and efficiently, with minimal business disruption.”

Mr Hill reiterated the aim to target the clothing and shoes sub-sector, adding China’s increased salary levels should present new opportunities.

He added: “China is no longer a low wage economy and manufacturers need to identify ways to improve costs, which is creating large demand for proven technology solutions.

“The Trans Pacific Partnership agreement also represents an excellent opportunity for emerging countries to begin outsourced manufacturing for big brands, especially in Vietnam, where apparel and footwear is tipped to grow 50 per cent.

“We are very optimistic about our future growth prospects.”

Indigo, based on Durham’s Belmont Business Park, counts sportswear firm Puma as a customer, and has previously worked with ready meal maker, Greencore, which runs a factory in Consett, County Durham.