© 2006 IBM Corporation
“ We help our partners to be more competitive! “
China- The Awakening Giant of Outsourcing
Liow Zen Pin (廖倫平 )Delivery Leader – Greater ChinaIntegrated Managed Business Process Delivery (IMBPD)
- IBM Confidential © Copyright IBM Corporation 2006
“ We help our partners to be more competitive! “
Page 2
Toronto
Lisbon
Greenock
Okinawa
Lexington
Dallas/Atlanta
Budapest
Krakow
Calgary
Bangalore
Costa Rica
Manila
Newcastle
Greenville, SC
Edmonton
Buenos Aires
Nashville
ShanghaiRotterdam
Brisbane
Tokyo
Dalian
Tulsa
Delhi/Mumbai/Pune/Chandigarh
Bratislava
Dublin
ParisEndicott
Stockholm
Houston
40,000+ resources supporting BTO worldwide 25,000+ global delivery professionals
in 22 centers worldwide Strong BCS transformational consulting practices built on
IBM and PwCC strengths
Experience in 35+ industries Unique in being able to leverage IBM research for client
transformation World’s largest IT financing entity with over $40B in assets
Finance & AccountingHuman ResourcesProcurementCRMPlannedIndustry specific
IBM has a global network of virtual world class delivery centers to satisfy IBM has a global network of virtual world class delivery centers to satisfy our clients’ diversed & growing needs..our clients’ diversed & growing needs..
Beijing
Guangzhou
Shenzhen
- IBM Confidential © Copyright IBM Corporation 2006
“ We help our partners to be more competitive! “
Page 3
IBM offers a full range of industry specific outsourcing services to support our IBM offers a full range of industry specific outsourcing services to support our global and regional clientsglobal and regional clients
Proc
esse
sA
SSO
Account Payable Account Receivables JE/GL Processing Fixed Assets
accounting Project Accounting Inter-company Billing Credit & Collections Cash Application Internal/External
Financial Reporting
Finance andAccounting
Customer Relationship
Human Resources
Inbound Customer Care Technical
Support
Outbound Telemarketing Telesales Lead generations Tele-survey Reminders
Sourcing Purchase requisition /
order management Procurement card Procurement
reporting and analysis
EDI & EFT Management
Payroll Processing Personnel Admin. Benefits Delivery Succession Planning Travel & Expense Work Force Mgmt Training Develop,
Delivery, Admin. Expatriate
management
Applications Transformation
Technology Transformation
ERP Management Data Administration Third Party Management End-user support Transformational Activities Related Legacy Apps Package Solutions
Performance and sizing Monitoring and maintaining Database Administration
Operating system upgrades Data Center Operations Network Management
Data entry and processing from image documentations to data file / system eg.
Application / claim forms
Medical scripts Customer Order
fulfillment
Data Processing
Flexible Deal Structures & Financing
IBM Research Process and Productivity
Improvements Web Enablement Annuity Based Solutions Global Resourcing Rustproofing and preventative
Maintenance Skills Leverage Portfolio Analysis Assessments Systems Engineering,
Arch. & Data Integrity Global Testing
Web Services Accelerated
Solution Delivery Global Solution and
Competency Delivery Centers
Procurement
- IBM Confidential © Copyright IBM Corporation 2006
“ We help our partners to be more competitive! “
Page 4
China needs to improve cost effectiveness and quality of human capital to China needs to improve cost effectiveness and quality of human capital to further capture a bigger share of global BPO marketfurther capture a bigger share of global BPO market
Source: NASSCOM McKinsey Study on Indian BPO
Size of circle corresponds to number of qualified workers
Low High
High
Location Attractiveness
Infrastructure Foreign Direct
Investment Incentives
Time zone attractiveness
Capabilities of Workers Quality Cost Type of Skills English Knowledge
Singapore
Hong Kong HollandAustralia
Ireland
UK
India
1998
Philippines
Mexico
China
India
China
Philippines
Mexico
Australia
UK
Ireland
Singapore
2006
- IBM Confidential © Copyright IBM Corporation 2006
“ We help our partners to be more competitive! “
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In order to capture the bigger slice of the global outsourcing market , China In order to capture the bigger slice of the global outsourcing market , China needs to clearly define and position herself in the marketneeds to clearly define and position herself in the market
Japanese/Korean English Chinese European lang.
Market Size
Additional language supported
- Higher languages availability combined with high quality business & IT education background
will help accelerate China from being a local/regional BPO centre into multi lingual Global
Delivery Centre
- Most of these locations/countries have very attractive incentives and government collaboration
programs in place to help corporations win new businesses and create jobs in their country
Language Location
English - India, Philippines, Malaysia
European - Krakow / Budapest
Japanese - Okinawa, China, Thailand, Vietnam
Korean - Korea, China
Where do most companies think about when considering offshore locations?
- IBM Confidential © Copyright IBM Corporation 2006
“ We help our partners to be more competitive! “
Page 6
Close collaboration between government and corporations and strong Close collaboration between government and corporations and strong government leadership will drive China’s success in outsourcing marketgovernment leadership will drive China’s success in outsourcing market
Key Success Factors Possible Government Assistance
Availability of language required and relevant functional skills
Further align education curriculum to business needs Collaborate with corporations on post graduation training requirements
Prior relevant operation experience
Assist corporations / clients to reduce financial and operational risks on pilot projects. Cost reduction in facility, system, telecommunication, financing cost, training and federal/city taxes would help corporations becoming more aggressive in launching pilot programs in China centre
Continuous learning and quality control
Existing workforce requires continuous learning on technical, business and management techniques. Government could help to provide rebates on qualified internal & external trainings
Cost effectiveness (level of services and quality provided vs cost)
Increment in human capital cost and potential high attrition rates will hamper corporations’ and China’s growth in outsourcing. Increased supply of qualified human capital from existing and/or other cities in China will help check this demand supply equation
- IBM Confidential © Copyright IBM Corporation 2006
“ We help our partners to be more competitive! “
Page 7
Close collaboration between government and corporations and strong Close collaboration between government and corporations and strong government leadership will drive China’s success in outsourcing market (cont’d)government leadership will drive China’s success in outsourcing market (cont’d)
Key Success Factors Possible Government Assistance
Availability of mid-senior management teams
Help reduce financial burden to hire mid-senior management team for initial period esp. in taxes,
Make affordable and international standard healthcare and education available
Establish attractive programs to attract oversea Chinese to return to China
Protection of individual and corporate information and intellectual properties
Clear confidentiality and intellectual property laws Effective enforcement of the law
- IBM Confidential © Copyright IBM Corporation 2006
“ We help our partners to be more competitive! “
Page 8
Zen Pin LIOW (廖倫平 )Delivery Leader – Greater China
Integrated Managed Business Process Delivery (IMBPD)
Mobile : +86-1592 100 8330Email : [email protected]
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