select china as an alternative destination walter fang vp of neusoft corporation president of...
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![Page 1: Select China as an Alternative Destination Walter Fang VP of Neusoft Corporation President of Neusoft America Copyright 2009 Neusoft Corporation. All rights](https://reader035.vdocuments.site/reader035/viewer/2022062519/5697bff81a28abf838cbf022/html5/thumbnails/1.jpg)
Select China as an Alternative Destination
Walter FangVP of Neusoft CorporationPresident of Neusoft America
Copyright 2009 Neusoft Corporation. All rights reserved.
Managing Risks and Uncertaintiesin Economic Downturn:
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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.
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Don’t Put All Your Eggs in One Basket
Consider China as Your Alternative
Offshore Outsourcing Destination!
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China is the Leading Growth Economy in Current Financial Crisis
GDP Forecast of Major Economies (2009-2010)
5. 8
7. 5
3. 02. 8
1. 62. 0
1. 5
7. 7
8. 5
5. 04. 6
- 0. 1- 0. 6- 0. 5
-2
-1
0
1
2
3
4
5
6
7
8
9
Euro Area UnitedStates
Japan India China Russia Brazil
Re
al G
DP
Gro
wth
20092010
Source: World Bank Dec.1 ,2008
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China is Beefing up Domestic Demand and Consumption
• 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.
Government Sector: IT market size
in China 2005-2012
Manufacturing Industry: IT market size
in China 2005-2012
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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
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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, capital-raising, telecom services, etc.
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Neusoft Overview
• 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.
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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.
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Overcoming Challenges and Changing Perceptions through Innovation
China Process Maturity: Still early
English Language Challenge: Largely a perception. Sufficient for most ITO & non-voice 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
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Copyright © 2009 by Neusoft Corporation. All rights reserved.