Sage CRM | Chinese SummitGordon McGuirk

Senior QA Manager

About me!!

• Senior QA Manager in Sage Technologies, leading the Localisation Centre’s QA Department, and is responsible for delivering quality localised versions of Sage’s CRM portfolio including ACT!, Saleslogixs and SageCRM in multiple markets worldwide.

• Have over 16 years of experience in the Software Localisation industry having worked in Microsoft prior to my current role in Sage. During these years I have been involved in many Outsourcing projects and managing these Virtual teams to ensure all processes and procedures are followed to deliver high quality products to the customer.

 • Over the years I have been working with Outsourcing Companies

based in Europe and Asia and have been outsourcing solely to China for nearly 10 years now.

• Quick to deploy with on-premise, hosted and Cloud-deployment options

• Direct presence in over 70 countries worldwide

• Leading provider of CRM for small to medium-sized businesses

• 30 years business software experience

• Over 1,000 partners globally• Easy to customise to meet

your business needs• Experts in rapid deployment

Award-winningCRM

SageGroup

Plc

GlobalPartner

Base

Sage CRM and our Formula for Success

• Recognised by over 12,000 customers as easy to use

• End-to-end business management for a front- to back-office view of the business

Localisation and Outsourcing to China – some tips for success & pitfalls to avoid

Agenda:• Reasons for Outsourcing • Vendor Selection Process & Legal Contracts• Why China? • China’s Twelfth Five-Year Guideline, 2011–2015• Business Culture in China • Strategy for Building Relationships• Successful Roadmap in China• Growing Wealthy Middle Class in China• Practical tips for visiting China – visa application, cities, dining and

technology cities and sites

“Offshoring, which is described as “a company taking a function out of their business and relocating it to another country,” whether the external country is physically offshore or not."

Outsourcing - Definitions

5

“Outsourcing is the process of contracting an existing business process which an organisation previously performed internally to an independent organisation, where the process is purchased as a service.”

Outsourcing - Reasons

Vendor Selection Process

Vendor Selection Process

Detail Proposal Documents

Evaluation Matrix

Trials Probation Period

Site Visit Contracts & Agreements

Evaluation & Feedback

Abundant Talent

• 6.3M college graduates in 2010 • English starts in 3rd grade• 20M new English speakers annually

Government Support

• $580B government investment in infrastructure in 2009• €7.4B Investment in Europe in 2011• €1.6T investment globally by 2020• 20 cities strategically invest in the IT Outsourcing industry• 12th 5 Year Guideline (2011-2015)

Geographic Advantage

• Preferred alternative to India• Geographic and cultural proximity to Japan, Korea, Asia• Huge, fast growing domestic IT and general business market

Why China?

“China will take dominant leadership of the outsourcing market by 2015” (Gartner)

50%

40%

10%2008

40%

45%

15%2012

30%

35%

35%2015

10%

25%

65%2018

Other

China

India

China Designated 20 cities as Technology Centres

Dalian

Nanjing

Shanghai

Hong Kong

Guangzhou

Chengdu

BEIJING

Shenzhen

Wuxi

Tianjin

ChongQing

Wuhan

DaQing

Suzhou

Xi`an

Ji`nan

HeFei

NanChang

Ha`ebing

HanZhouChangSha

Business Culture in China

Making Conversation Meetings Entertainment & Gifts

Presentations

Making Deals Negotiations Corporate Social Responsibility

Role of State

Invite the government leaders or relative administrators to visit your company

Company executives take the lead in the relationship

Pay attention to the political movements between 2 countries

Make full use of diplomatic relations

Keep on top of the 5-year plan and macro-control plan towards economic development

Regular communication with government about company achievements and progress

Align with industry players and get 3rd party validation to validate the company’s position

Engage in corporate social responsibility through community activities to keep the name out

A relationship with the China government is essential to do business with most enterprises

Strategy in Building Relationships

Become “China Client” not “Client China”

Define Your Strategy

• Think globally, act locally• China strategy (Product, Talent, Partner, Milestones, Investments)• Joint Venture

Government Relationship

• Establish good communication and PR with the government

Grow Your Industry

• Develop and focus on your industry for at least 3-10 years• Be mindful of China’s 12th 5-year plan

Successful Roadmap in China

Middle Class Consumption

Expensive Electronics Designer Brands Dining Out

Travel Cars Health Clubs, RecreationGrowthThe Chinese middle class is expected to expand by 600 million by 2020

Disposable IncomeDisposable income and consumption rates are expected to increase by 18% a year compared to 2% in US

DefinitionA household earning over $10k/year, a level regarded as high enough to buy a car or think about purchasing an apartment in China

CompositionMiddle class is composed of party and government officials, enterprise managers, private entrepreneurs, professional and senior level clerical workers

JumpstartThe Chinese middle class has grown at a phenomenal rate since the end of the Mao era

PopulationThere are between 100 million and 150 million people in the middle class in China

Visiting China• Letter of Invitation & Visa• Cities to visit• Hospitality & Dining

Letter of Invitation & Visa Application

Dalian: “The Pearl of the North”

Chinese Cities

Beijing: The Capital with Cultural Heritage

Shanghai: The Largest Economic and Financial Centre

Chengdu: “Paradise on Earth”

Nanjing: Cultural Center of the East

Shenzhen: The First Economic Development Zone

Hospitality & Dining

Thank You!

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