Transcript 幻灯片 1

Managing Risks and
Uncertainties
in Economic Downturn:
Select China as an
Alternative
Destination
Walter Fang
VP of Neusoft Corporation
President of Neusoft America
Copyright 2009 Neusoft Corporation. All rights reserved.
Risks and Uncertainties in the
Context of Today’s Global Economy
•
In the present economic turmoil, companies
must look for new markets for growth, in
addition to cut costs to survive.
•
Shortened product life cycle presents companies
with higher R&D risks, and pressure for faster
time to market.
•
Global shortage of IT skills forces companies to
turn to countries with abundant cost-effective IT
talents.
•
Recent Satyam incident rocked outsourcing
industry, and prompted buyers to review their
sourcing strategies.
Don’t Put All Your Eggs in
One Basket
Consider China as Your Alternative
Offshore Outsourcing Destination!
China is the Leading Growth
Economy in Current Financial Crisis
GDP Forecast of Major Economies (2009-2010)
9
8.5
7.7
8
7.5
7
5.8
Real GDP Growth
6
5.0
5
4.6
4
3.0
3
2009
2010
2.8
2.0
2
1.6
1.5
1
0
Euro Area
-1
-0.6
United
States
-0.5
Japan
India
China
Russia
Brazil
-0.1
-2
Source: World Bank Dec.1 ,2008
China is Beefing up Domestic
Demand and Consumption
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Government Sector: IT market size
Manufacturing Industry: IT market size
in China 2005-2012
in China 2005-2012
China has launched a 4-trillion-Yuan stimulus to promote domestic demand by
upgrading infrastructures, which offers many IT outsourcing opportunities.
Lowered export forces Chinese manufacturing companies to focus on product
innovation and efficiency improvement, which also creates tremendous
opportunities to IT services.
In China, more than 85% of IT outsourcing service revenue comes from
domestic market, only less than 15% from offshore outsourcing services.
China has a Large Pool of
Skilled Human Resources
16 million students in over 2,500 colleges and universities
• over 4 million, including 60,000 science and technology
graduates each year
•
Chinese Government Supports
Outsourcing and the Service Industry
• Chinese government’s “1000-100-10
Project” to promote service outsourcing
• 20 designated service outsourcing bases
and cities
• Government funding to support the
cultivation of outsourcing talents
• Favorable policies for outsourcing
companies in finance, taxation, capitalraising, telecom services, etc.
Neusoft Overview
•
•
•
•
•
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Started from Northeastern University in 1991
A leading IT solution and service provider in China, with
more than 15,000 staff, and total estimated revenue of
US$540 million in 2008
The largest offshore outsourcing provider in China
The first publicly listed software company in China
The first CMM5 and CMMI5 certified software company in
China
5 software parks in Shenyang, Dalian, Nanhai, Chengdu,
and Nanjing; 3 Neusoft IT Institutes, and subsidiaries in
USA, Europe, and Japan.
Recognitions
•
In 2009, Neusoft was listed fifth time in the
Global Services 100 and also crowned Top
10 leaders of Emerging Asian Markets.
•
In 2007, Neusoft became the first Chinese
company that entered the top 25 among
IAOP's Annual Listing of the World's Best
Outsourcing Service Providers.
•
In 2007, Neusoft was awarded the title of
2006 CCTV Best Employer.
•
In 2007, Neusoft won China Outstanding
Innovation Enterprise Award and China IT
Innovation Enterprise Award.
Overcoming Challenges and Changing
Perceptions through Innovation
China
 Process Maturity: Still early
 English Language Challenge: Largely a
perception. Sufficient for most ITO & nonvoice BPO.
 Lack of Operations Experts
 Differentiation:
Cost alone is not enough.
Need to focus on value & build up more
differentiation
 Standards:
Opportunity to create quality standards tied to
client TCO

Challenges:
Reputation, Language, Quality, and
perception of IP Security problems
Applying Innovation
and Best Practices
for Outsourcing
Copyright © 2009 by Neusoft Corporation. All rights reserved.