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Talent:
- High literacy rates-above 90%
- Chinese universities graduate >5 million students per year with more than 700,000 of those being engineers. Nearly 3000 PhDs in computer science each year;
- China currently has 200,000 IT professionals involved in the software export industry, with an additional 50,000 entering the workforce each year;
- Approx 20,000 Chinese PMs and technical resources have returned from the US, Canada and the UK, and this trend is continuing…
- High command of English and improving every year.
Lower Costs: Ability to lower a firm's cost of operations
- Leveraging China-based IT resources can often result in cost savings of between 50-70% over internal resources;
- Rates in China are currently 25-30% less than those in India, when working through China-based providers;
- Rates may vary depending upon location (Tier 1-2-3 cities) and English proficiency;
- Beyond labor arbitrage – Companies may come to China for costs but will stay for other reasons (productivity and time-to-market advantages);
- Government financial incentives given to foreign enterprises in many cities.
Government Support and Commitment:
- Ten-Hundred-Thousand Program (MOFCOM);
- Promote 10 (later increased to 11) city bases for outsourcing
- Attract 100 multinationals to China as an offshore destination
- 1000 enterprises having the capability for outsourcing
- Government focused on the following:
- Developing domestic capability and capacity
- Emphasis on MNC participation
- Learning from India's success
- Growing number of industry associations
Domestic Market: China's domestic market presents many opportunities for global corporations
- Large domestic need for IT & outsourcing services;
- Robust growth of SMEs, foreign businesses in China and improved competitiveness of state-owned enterprises (SOEs);
- Export growth (outsourcing CAGR ~30%)
- US and European companies have started to increase their presence in China in a significant way;
- A number of operational models can be supported – Captive, JV, BOT, Carve-outs, Outsourced etc.;
- Firms have a choice of trusted partners to work with in China.
Quality Infrastructure:
- China is one of the most attractive destinations for offshore outsourcing (second only to India) - AT Kearney report on Top Outsourcing destinations;
- IDC attributed this to China's massive investments in areas favorable towards off shoring, such as infrastructure development, technical skills, security, internet connectivity;
- Global events such as the 2008 Being Olympics and 2010 Shanghai World Expo are driving further infrastructure investment.
Risk Diversification:
- For corporations that have significant single country exposure, especially India;
- IDC forecasts that Chinese cities will overtake Indian cities by 2011 due to massive investment made (e.g. infrastructure, English language, Internet connections, technical skills, etc.) which are favorable towards off-shoring;
- Risk Mitigation & Diversification from India sourcing exposure.
 Why Choose VanceInfo: Value Driven
Key Differentiators:
- Global Company and Diverse Workforce:
- Diverse workforce with international experience – more than 30 nationalities represented in our company;
- Executive Management has lived or worked for a significant period of time in the US/Europe;
- Leverage extensive relationships to help customer penetrate China market.
- Exposure and experience helps in aligning with customer expectations and goals.
- Publicly Listed:
- First pure-play Chinese outsourcing firm to be listed in the USA (New York Stock Exchange – NYSE:VIT);
- SOX compliance, Full Disclosure and Transparency;
- Builds Customer and Investor confidence;
- VanceInfo is viewed as leader and industry consolidator.
- Well-positioned to serve International, Greater China and Asia-Pacific markets:
- Capabilities and culture suited to working with US/EU multinational customers that have a significant presence in APAC region;
- Over 50% of revenues derived from international customers
- Industry validation – Ranked #1 China based outsourcing vendor for US/EU markets (IDC, 2010).
Value Drivers:
- Unique China Leverage: Quality, Costs and Scale
- Scale: With over 10,000 people, VanceInfo provides clients the ability to scale, with economies to realize maximum benefits;
- Cost efficiency: material discount (up to 30%) compared to increasing wages in India;
- Quality: CMMI Level 5 & ISO quality & World Class infrastructure widely recognized as superior to other outsourcing locations.
- People and Culture:
- We hire the best: those who exhibit the 3As – The right Ability, Attitude & Approach;
- Global experience: Accenture, Morgan Stanley, BearingPoint, Scient, Oracle, etc.
- Good communications: high native intelligence and strong work ethic;
- We are global citizens and strongly encourage cultural diversity.
- Lower Risk:
- Large, stable and financially sound: Publicly listed in the USA (NYSE:VIT);
- Investment by Tier1 VCs: Sequoia Capital & Doll Capital Management;
- Risk Mitigation & Diversification from India sourcing exposure.
- Flexibility & Strategic View of Relationship:
- Flexibility: Our philosophy if that "one size doesn't fit all" & so we offer a wide range of services & flexible engagement models so that our relationships are long term and strategic;
- Strategic: VanceInfo has built special engagements with clients where it has developed dedicated competency centers. Examples: Testing Center for Banking, Business Intelligence, Messaging (with TIBCO) and others. We could do the same for your organization.
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