© 2006 i.t. united proprietaryseptember 22, 2006 - your competitive edge - china the new global...
TRANSCRIPT
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© 2006 I.T. UNITED Proprietary September 22, 2006
- Your Competitive Edge -CHINA The New Global
Technology Outsourcing HUBCyrill Eltschinger
CEO, I.T. UNITEDOutsourceWorld New York
-- Metropolitan Pavilion October 17, 2006 --
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3© 2006 I.T. UNITED Proprietary
Table of Contents
1. Global Trends
2. China: Your Essential Shore
3. Case Study
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© 2006 I.T. UNITED Proprietary September 22, 2006
1.Global Trends
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5© 2006 I.T. UNITED Proprietary
Industry Forecast -
• Worldwide end users spending on IT in 2005 was $625 billion, to increase at 6% CAGR and reach $828 billion by 2010
• Global BPO market$135 billion in 2006, at an 8% CAGR to$182 billion by 2009
• Global ITO market: $50 billion by 2008, at a 20% CAGR
Source: Gartner and Nelson Hall (2006); IDC and The Economic Times (2005)
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6© 2006 I.T. UNITED Proprietary
Offshoring – ITO Leads Growth
0
2
4
6
8
10
12
14
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Source: The McKinsey Quarterly, July 2006
Offshoring Market Spending$ billion
% of Total Offshoring Market (estimated)
35% in 2006
5% in 2006
3% in 2007
Infrastructure
BPO
Application Development
An estimated 1 million programmers needed!
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7© 2006 I.T. UNITED Proprietary
Offshore ITO & BPO Outlook
Source: Gartner Research, 2005
IT Services
BPO Services
Offshore Spending
US$50 billion
US$24 billion
By 2008
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8© 2006 I.T. UNITED Proprietary
Top 10 Barriers
1. Competing resources (48%)
2. Functional boundaries (44%)
3. Change Skills (43%)
4. Middle Management (38%)
5. Long IT lead times (35%)
6. Communication (35%)
7. Employee opposition (33%)
8. HR (people/training) issues (33%)
9. Initiative fatigue (32%)
10. Unrealistic timetables (31%)
Top 10 Success Factors
1. Ensuring top sponsorship (82%)
2. Treating people fairly (82%)
3. Involving employees (75%)
4. Giving quality communications (70%)
5. Providing sufficient training (68%)
6. Using clear performance measures (65%)
7. Building teams after change (62%)
8. Focusing on culture / skill changes (62%)
9. Rewarding success (60%)
10. Using internal champions (60%)
9 out of 10 factors are people related.
Source: IBM Survey of Global 500
Successful Outsourcing Transactions
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9© 2006 I.T. UNITED Proprietary Gartner Research: Comparison, Indian & Chinese Software Services Markets. 31-May-2002
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10© 2006 I.T. UNITED Proprietary
Most Attractive Global Business Locations
Source: UNCTAD World Investment Report 2005
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11© 2006 I.T. UNITED Proprietary
China Market Gaining Attractiveness
• By 2007: Chinese #1 Internet language
• By 2010: China to be largest… − Cell phone market− Beer market− Worldwide I.T. market− Advertisement− Automotive car park− Commercial aviation− Chemicals− Waste & recycling treatment, etc.
(Accenture 1999)
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12© 2006 I.T. UNITED Proprietary
Top 3 Languages on the Web
2006Users
by Language Language as % of
Total Users
English 312,757,646 30.6 %
Chinese 132,301,513 13.0 %
Japanese 86,300,000 8.5 %
Spanish 80,593,698 7.9 %
German 56,853,104 5.6 %
Source: www.internetworldstats.com, March 31, 2006
1
2
3
China*: users, incl. other Chinese speaking regions
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13© 2006 I.T. UNITED Proprietary
Top 3 World Internet User Groups
2006 Population2006 est.
UsersLatest Data
Penetration% of Population
European Union
462,371,237 230,396,996 49.8 %
USA 299,093,237 205,326,680 68.4 %
China* 1,306,724,067 111,000,000 8.5 %
India 1,112,225,812 50,600,000 4.5 %
Source: www.internetworldstats.com March 31, 2006
1
2
3
China*: Internet users in mainland. Not including Taiwan.
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14© 2006 I.T. UNITED Proprietary
Asia-Pacific Cross-Border M&A
Source: UNCTAD World Investment Report 2005
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15© 2006 I.T. UNITED Proprietary
Asia-Pacific HQ Relocation
• 1970s: Australia
• 1980s: Singapore
• 1990s: HK & Japan
• 2000 onwards: Mainland China› Shanghai› Beijing› Other Cities
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16© 2006 I.T. UNITED Proprietary
Outsourcing Global Play @2006
• India
• China
• Brazil
• Russia
Many other destinations, but without volume ability to scale up tech talents & professionals
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© 2006 I.T. UNITED Proprietary September 22, 2006
2.China: Your
Essential Shore
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18© 2006 I.T. UNITED Proprietary
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19© 2006 I.T. UNITED Proprietary
AChina Focus:
“Understanding The Market”
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20© 2006 I.T. UNITED Proprietary
China Basics
• Slightly larger thanUS, incl. AlaskaPRC area: 9,596,960sq km
• 1.3 billion people
China about twice the
population of EU
• 90+% literacy
• Government focus on English language development
Source: www.worl-gazetteer.com and http://www.cafediverso.com
China = 4 xUS population
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22© 2006 I.T. UNITED Proprietary
China FDI
$84.75
$115.07
$153.48$167.21
$52.74 $53.51 $60.63 $60.33
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
2002 2003 2004 2005
US
D (
in B
illio
n)
Contracted FDI
Actual FDI
Source: Beijing Municipal Bureau of Commerce, 2006
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23© 2006 I.T. UNITED Proprietary
FDI – Geographic Allocation• Eastern Region captures nearly all FDI
• 65% in Fujian, Jiangsu, Guangdong, Shandong, and Shanghai
ADB, FDI Survey 2005
93.0% 86.5% 86.1%
11.0%8.9%3.5%3.5% 4.6% 2.9%
0
0.2
0.4
0.6
0.8
1
1990 2000 2004
Western
Central
Eastern
$11.69bil $40.77bil $60.63bil
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24© 2006 I.T. UNITED Proprietary
China Investor Friendliness
Source: The US-China Business Council: An Investor’s Guide, 2003
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25© 2006 I.T. UNITED Proprietary
China – Economic Performance 2005
• GDP +10.2% to $2,305.28 billion
− 2006 Q1: + 10.2% to $1,314.5 bil
• FDI, reaching $60.33 billion (-0.5%)
- 2006 Q1: +6.4% to $14.2 billion
• Investment in fixed assets +25.7%
• Retail sales +13.8% to $76.52 billion (2004)
Source: Various, September 2006
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26© 2006 I.T. UNITED Proprietary
2020 – Economic Targets
• GDP overall: $4 trillion (4x higher)
• GDP growth: 7.2% annual
• GDP per capita: $3’000, up from $1’000
China Development Research Institute, www.china.org.cn, 2005
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27© 2006 I.T. UNITED Proprietary
R&D and Innovation Stages in China
Source: Gartner Research ID Number: G00138506, May 2006
Effort Dedicated to
R&D and Innovation
Business ValueLOW
HIGH
HIGH
1980
2006+
1990
2000
Basic ProductionTrain workers in essential production and technical skills required for efficient production – quality management, procurement and inventory management systems.
Significant AdaptationChange products and processes to adapt technology to local or export market – in-house experimentation and R&D.
Technology ImprovementsImprove products, processes and skills to raise productivity and competitiveness, in-house R&D.
Frontier InnovationCreate new technologies.
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28© 2006 I.T. UNITED Proprietary
050
100150200
250300350400
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Mill
ions
of
Use
rs
Fixed Mobile
Sources: MII, May. 2006; China National Bureau of Statistics, 2006Forecasts – MII * Fixed includes PHS/Xiaolingtong subscribers
Fixed*:06-2006360 M
Mobile:06-2006435 M
Decade of Unprecedented Growth of Telecom Infrastructure
Into Market Innovation
Drive Era
435 mil
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29© 2006 I.T. UNITED Proprietary
Mobile coverage extensive in developed areas, lagging in rural areas
Source: GSM World, 2006
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30© 2006 I.T. UNITED Proprietary
China Internet Snapshot
• June 2006: 123 mil users
− 64mil broadband users, 2nd largest high-speed after US
• Only 9.4% of China’s total population
• 12+% of total Internet users worldwide
• 3rd largest user group, after the EU & US
Sources: CNNIC, Internetworldstats.com, November 2005
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31© 2006 I.T. UNITED Proprietary
China Internet UsersTotal Number of Internet Users in Million
0.62 1.175 2.1 48.9
16.922.5 26.5
33.7
45.8
59.168
79.587
94103
111
123
0
20
40
60
80
100
120
140
97.1
098
.799
.199
.700
.100
.701
.101
.702
.102
.703
.103
.704
.104
.705
.105
.706
.106
.7
Source: CNNIC, June 2006
123 mil
9.4% population penetration
(8.5% 2005 and 7.2% in 2004)
Internet users refers to Chinese mainland citizen who use the Internet at least one (1) hour per week. Not including: 1) Hong Kong; 2) Macau; and 3) Taiwan
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32© 2006 I.T. UNITED Proprietary
Web International Bandwidth
143 241 351 1,234 2,799 3,257 7,598 10,577 9,38018,599
27,216
53,941
74,42982,617
136,106
214,175
0
50,000
100,000
150,000
200,000
250,000
214.2 Gbp/s
Sensational speed of growth
Not including: 1) Hong Kong; 2) Macau; and 2) Taiwan)
Source: CNNIC, June 30, 2006
1999 06/20062003
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33© 2006 I.T. UNITED Proprietary
BTechnology Outsourcing
Industry Focus
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34© 2006 I.T. UNITED Proprietary
Keep in House
From Manufacturing
Outsource Gradually
•Cheap labor•Low skill sets•Factory workers
Technical Knowledge
BusinessKnowledge
To Services
A Matured Marketplace – New EraBooming: Engineering Services
•High value•High-end skill sets•Engineering services
2003-2004:Key Turnaround
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35© 2006 I.T. UNITED Proprietary
China: Eastbound – JP/ USA
Depart BeijingAt 1:00pm, Any Day…
Land in the US Before Departure
Same Day
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36© 2006 I.T. UNITED Proprietary
China: Westbound - Europe
200 flights a week To EU
Depart BeijingAt 11:30am, Any Day…
Land in the UK 3:15pm
Same Day
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37© 2006 I.T. UNITED Proprietary
Outsourcing Industry Forecasts• Global IT outsourcing market will grow at a
compound annual growth rate (CAGR) of 20%• China's outsourcing market is expected to grow
at 36.5% ACGR through 2008/1010• Rapidly “Moving” China outsourcing software
industry size and tech talents availability
Sources: IDC Group 2005, Global Outsourcing Report 2005
0
5
10
15
20
2008 OutsourcingMarket $US Billion
0
10
20
30
40
Annual Growth Rate %
China
Global
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38© 2006 I.T. UNITED Proprietary
China SW & IT Services Exports Revenues Outlook
Source: Sino-India Cooperative Office, Beijing 2005
In Million USD$
$4.6bil
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39© 2006 I.T. UNITED Proprietary
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
1998 1999 2000 2001 2002 2003 2004 2005 2006
Source: China National Statistics Bureau 2005; and China Ministry of Education 2005
China - Annual Computer Science & Software Graduates
140k
89k62k
189k
33k29k 41k
400k E.
250k
E.
Not including Hong Kong & Taiwan
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40© 2006 I.T. UNITED Proprietary
Beijing #1
Source: TORCH Center 2005
Xi’an #3
Shanghai #2
Top-3 Higher
Education Cities
53 High-tech parks
29 National software parks
Software Technology Parks-TORCH Program-
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41© 2006 I.T. UNITED Proprietary
China – Software Export Markets
Source: Analysis International, April 2006
Japan 59.2%
Hong Kong 10.9%
USA & EU 22.5%
Others 7.4%
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42© 2006 I.T. UNITED Proprietary
China Outsourcing Hotspots
1. Beijing, Shanghai, Shenzhen [First tier cities]
2. Chengdu, Dalian, Xi’an, Tianjin, Suzhou [Second tier cities]
53 High-Tech National-level Economic Zones− Which includes 29 software parks, incubators and
R&D centers**
Source: TORCH Center 2005
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43© 2006 I.T. UNITED Proprietary
China Tech Services Critical to Global Competitiveness
2006
(-5%)
China New Era: Booming Engineering Services Sector to China
2003-2004: Turnaround
(-15%)
(-25%)
2006
2007 2008 2009 2010
ChinaTier-1
ChinaTier-2
India
Widening GapIncreasing Hourly
RatesHourly Rates
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44© 2006 I.T. UNITED Proprietary
Beijing’s Play in Outsourcing
Ranked 6 times #1 in national rankings:
1. Software (SW) exports (~40% of China)
2. Number of SW products delivered / year
3. Technology exports
4. Number of software enterprises
5. Highest reimbursement for SW-related VAT
6. Highest concentration of SW professionals
Source: Beijing Municipal Bureau of Commerce 2005
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45© 2006 I.T. UNITED Proprietary
Software Export – Beijing
$45$70
$93
$138
$227
$303
$450
0
50
100
150
200
250
300
350
400
450
500
2000 2001 2002 2003 2004 2005 2006
US
D (
in M
illio
n)
Software Export
Outlook: $2bil by 2010
Source: Beijing Municipal Bureau of Commerce 2006
E.
Data reported to customs software exports bureau. Actual figure much larger.
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46© 2006 I.T. UNITED Proprietary
Top-5 Overseas Concerns in Considering Offshoring & Services to China
1. English Language Capabilities?!2. Intellectual Property Rights ?!3. Information Security ?! 4. Tech Talents Quality ?!5. Staff Loyalty/ Turnover ?!
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47© 2006 I.T. UNITED Proprietary
China’s Outsourcing Challenge
• Overseas Marketing! Too many conferences inside China, little/no participation at overseas trade shows
• International Internet controls• International Standards. Number of certifications
as of 2005, i.e.:− QMS: 7’754 (BJ) / 138’042 (Total) − CMM3/CMMI3: 38 (BJ) / 112 (Total)− CMM5/CMMI5: 5 (BJ) / 17 (Total)
• Communications, rapidly improving• India’s 25years head start
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© 2006 I.T. UNITED Proprietary September 22, 2006
3.Case Study
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© 2006 I.T. UNITED Proprietary September 22, 2006
– Smooth Project Migration – Successfully Growing Your
Offshore PartnershipDoug Rosenthal, I/T Development Manager, Dell
Cyrill Eltschinger, CEO, I.T. UNITED
– Gartner Outsourcing Summit, Orlando, FL –
April 3, 2006
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50© 2006 I.T. UNITED Proprietary
Partners at a Glance
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51© 2006 I.T. UNITED Proprietary
Dell Profile
• Founded in 1984
• Diverse technology and service provider
• No. 28 on Fortune 500
• 65,200 employees globally
• Publicly traded (NASDAQ)
• Revenue of $56 billion
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52© 2006 I.T. UNITED Proprietary
Dell and Offshoring
• Global organization encompassing offshore employees and partnerships
• Offshore facilities for engineering, manufacturing, and customer service
• I/T development centers in Asia, Europe, LA
• Global network of suppliers
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53© 2006 I.T. UNITED Proprietary
Dell Master Data Management (MDM)
• System of record for global product data
• Product attributes related to sales, marketing, and order management
• Support variety of customer-facing and internal applications
• Scalable, reliable data management environment
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54© 2006 I.T. UNITED Proprietary
I.T. UNITED Profile
• China - Since 1998
• 200+ team - ITO & BPO
• 85%+ from Chinese top universities
• Privately held -Operating in China as a wholly-owned foreign enterprise (WOFE)
• Leading China-based outsourcing provider
• Multinational client portfolio
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55© 2006 I.T. UNITED Proprietary
I.T. UNITED Offices
N. America: • San Francisco, USA• Toronto, Canada
Asia: • Beijing, China (Global HQ)• Shanghai, China
• Xi’an, China• Hong Kong, China• Chengdu Q1’07, China• Tokyo, Japan
Europe:• Brussels,
Belgium
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56© 2006 I.T. UNITED Proprietary
I.T. UNITED Acknowledgements 2006
• ‘Global Services 100’ - Recognized in the top 5 leading China-based outsourcing services provider (01-06)
• ‘Global Outsourcing 100’ - Selected by the International Association of Outsourcing Professionals (IAOP) as a rising star (04-06)
• ‘Outstanding IT Outsourcing Services’- Supported by the Chinese Ministry of Commerce, second year in a row (06-06)
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57© 2006 I.T. UNITED Proprietary
Case Study:Engagement for Data Migration
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58© 2006 I.T. UNITED Proprietary
Background
• Dell undergoing a MDM globalization and consolidation process that includes Oracle, .NET
• Dell continues to leverage global partnerships
• Dell interested in working with a China partner to leverage cost advantages and supplier flexibility (scalability, ramp-up time, etc.)
• Dell evaluated and retained I.T. UNITED
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59© 2006 I.T. UNITED Proprietary
Why China?
• Diversification of global sourcing risk
• Strategic market across industry sectors with sustained economic growth 10 yrs outlook
• Largest pool of tech talent
• Exploding English language command
• Tech industry: #1 focus by China Gov.
• State-of-the-art infrastructure
• Lowest rates, globally
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60© 2006 I.T. UNITED Proprietary
Project Engagement
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61© 2006 I.T. UNITED Proprietary
Engagement Model
• Fixed-fee project vs. staff augmentation
• Initially fixed-fee project to determine suitability
• Move to staff augmentation: target self-contained development work− Longer-term commitment of resources− Grow domain knowledge and familiarity with technology− Gain productivity efficiency− Absorb company culture and work style
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62© 2006 I.T. UNITED Proprietary
Project Scope
• DBMS migration (SQL Server 2000 to Oracle 10G)
• Data model consolidation
• PL/SQL generation
• Automated tools in C# / .NET− Team of Oracle developers supporting Dell’s efforts to
migrate MDM applications from SQL Server to Oracle− CMMI-inspired, incremental project management
approach with high flexibility
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63© 2006 I.T. UNITED Proprietary
The Offshore Team Structure
• Offshore team− Lead Developer + Developers + Testers− Part-time Project Manager (25% allocation)− Part-time Account Manager
• Metrics− Approx. 5:1 offshore to local (onshore) resources ratio− Local FTE 20%-25% part-time allocation− 2-3 month project cycles
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64© 2006 I.T. UNITED Proprietary
DellManager
Developers
TechnicalLead
AccountManager
Developers
ProjectManager
TechnicalLead
Project Team
Project Planning & Status
Relationship Management / Oversight
Day-to-day coordination / mgt
Project Team Structure
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65© 2006 I.T. UNITED Proprietary
Work Process
• Iterative approach between offshore resources and local (senior) developers
• Define functional requirements and design guidelines
• Frequent deliverables and regular feedback
• Offshore team to test each deliverable, then local resource also validates; local code review
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66© 2006 I.T. UNITED Proprietary
Success Factors
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67© 2006 I.T. UNITED Proprietary
Success Factors
• Security
• Communication
• Quality Assurance
• On-Time Delivery
• Response Time
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68© 2006 I.T. UNITED Proprietary
Security
• Offshore staff working on segregated network
• File transfer via secure FTP
• Restricted access to dev/test environment
• CCTV protected work premises
• No external data-recording devices permitted
• Clean desk policy
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69© 2006 I.T. UNITED Proprietary
Communication
• English proficiency of key staff members in China
• Establish team spirit
• Ensure that work is on track− Meet deadlines (I.T. UNITED)− Timely decisions & feedback (Dell)
• Weekly conference calls and status reports
• Onsite progress meetings as appropriate
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70© 2006 I.T. UNITED Proprietary
Quality Assurance
• Iterative two-step QA process based on CMMI
• Cross-validation by team members and technical lead prior to delivery
• Cross-validation of offshore deliverables by local teams
• Routine technical training for offshore developers
• Performance-based incentives
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71© 2006 I.T. UNITED Proprietary
On-Time Delivery
• Clear requirement specifications
• Weekly status reports− Project schedule reviews− Issue/Resolution tracking
• Smooth project implementation: faster problem solving with combined technical skills
• Effective time zone management− I.T. UNITED gets the work done overnight
(follow-the-sun)
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72© 2006 I.T. UNITED Proprietary
Results
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73© 2006 I.T. UNITED Proprietary
Partnership Results
• Complementary development skills between both Dell and I.T. UNITED teams
• Successful DB migration and consolidation
• Automated SQL generation tools
• Validated engagement model
• 65% cost savings per FTE
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74© 2006 I.T. UNITED Proprietary
Next Steps
• Growth of existing support teams
• Implement concurrent projects
• Evolve partnership to other development areas, including consulting services
• Expand partnership opportunities within Dell
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75© 2006 I.T. UNITED Proprietary
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76© 2006 I.T. UNITED Proprietary
China Offshoring Advantages
• Largest pool of tech talents
• Sustained economic growth 10 yrs outlook
• World class infrastructure and networks
• Exploding English language command
• Government commitment to tech industry
• Steady expansion into China as strategic market
• Lowest rates, globally
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77© 2006 I.T. UNITED Proprietary
Q&ACome and see us at our
Booth downstairs OSW#10
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78© 2006 I.T. UNITED Proprietary
Enter your Business Card into our Lucky Draw box at the booth and Win the official Beijing Olympics 2008 Games Mascots…
Draw:1:45pmOct.18Wed.
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79© 2006 I.T. UNITED Proprietary
Keep in Touch
Cyrill Eltschinger
e-mail: [email protected]
phone: +86-10-6599 2288 ext.-800
China cell: +86-139-0109-5212
USA cell: +1 (310) 801 0598
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80© 2006 I.T. UNITED Proprietary
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81© 2006 I.T. UNITED Proprietary
End
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82© 2006 I.T. UNITED Proprietary
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83© 2006 I.T. UNITED Proprietary
BACKUP
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84© 2006 I.T. UNITED Proprietary
China-US Specific Success Factors
IPR
Time-zone
Language skills
Local holidaysCultural
understanding
Export control issues
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85© 2006 I.T. UNITED Proprietary
China IPR In The Spotlight
• Highest awareness – China brands arte taking off− Beijing is home to 70% of Chinese software brands
• Ongoing focus on enforcing protection measures• Focus on short legal proceeding for IPR lawsuits• Continued government campaigning to raise
awareness & training• Ongoing media coverage to fight illicit use fake
products
Source: Beijing Municipal Bureau of Commerce 2005
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86© 2006 I.T. UNITED Proprietary
Indian IT Firms China Rush?
• Tag-along its client base going to China• Tap into China’s domestic software sales• Tap into largest industries across sectors• Re-position closer to the Japanese market• Tap into most attractive China talents rates• Tap into special skills to face own shortages
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87© 2006 I.T. UNITED Proprietary
Battle of the Titans: CHINA INDIA
Population
Literacy rate
Foreign exchange reserves
GDP
Avg. Ann. Growth of IT Sector
Software exports
Internet bandwidth
Installed PC base
Fixed phone lines
Mobile connections
Number of software companies
Domestic software sales
Hourly rate for developer (2yrs)
Sources: Gartner Research May 2002; ADP May 2004, MII 2006; US-China Business Council 2005, IMF, 2005; Indiainfoline 2004; CISA 2004, TIMES NEWS NETWORK 2003, ITU World Telecommunication Indicators Database, 2005/6
1.3bil
90%
$412bil
$2,228bil
42% (97-03)
$2bil
136Gbps
40mil
360mil
420mil
10,000+
$22.3bil
$12-25
1.09bil
59%
$102bil
$719bil
2.4% (97-03)
$10bil
10Gbps
8mil
67mil
69mil
3,000+
$3bil
$24
$167bil $>6bilContracted FDI ‘05:
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88© 2006 I.T. UNITED Proprietary
Offshore – Rapidly Increasing
• Offshore will more than double in 3 years− 2005: 3% of overall IT services spending, while − 2008: 6-7% (Gartner and IDC)
• By 2008, nearly 1/4 of U.S. spending on applications development (ADM), integration and management services will go to offshore providers (IDC)
Source: The Economic Times, 2005
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89© 2006 I.T. UNITED Proprietary
Global Outsourcing Projections
• 2000: < US $5.5 billion
• 2005: > US $17.6 billion
• 2008: > US $50 billion
Source: Various
0
10
20
30
40
50
60
2000 2001 2002 2003 2004 2005 2006 2007 2008
US
$ B
illio
n
Pro
ject
ion
• Total worldwide tech outsourcing volume, today: India ~2% ; China ~1%
An estimated 1 million programmers needed!
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90© 2006 I.T. UNITED Proprietary
Global BPO Market• Global BPO market is expected to reach $134.7 billion
in 2006, an increase of 8.3% over 2005
• It is predicted for the global BPO market to grow at an average rate of 8% per annum, reaching $182 billion by 2009
Source: Gartner and Nelson Hall, September 2006
134.7
182
0
50
100
150
200
$U
S B
illi
on
2006 2009
Predi ctedBPO Market
8% increase per annum
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91© 2006 I.T. UNITED Proprietary
International Client Base
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92© 2006 I.T. UNITED Proprietary
Recognition, Awards and Rankings• I.T. UNITED is an internationally recognized Top 100
offshore player and a “Class A” IT company in China. • International Association of Outsourcing Professionals
(IAOP) - one of ‘The Global Outsourcing 100’.• Selected as an outstanding IT outsourcing (ITO) and
business process outsourcing (BPO) service provider by ‘Global Services 100’.
• Ranked in ‘Global Services 100’s China Top 5 list.• Received the 1st China Outsourcing Award by the Ministry
of Commerce & Dalian Municipal Government.• Ranked in CIO INSIGHT magazine’s Global Outsourcing
Report 2005 as one of China’s Top 10 “Major Players”.• Top 100 Offshore Global Players and one of China’s Top
10 IT Companies by Managing Offshore and neoIT.
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93© 2006 I.T. UNITED Proprietary
China –A Rapidly Changing
Market Place ?
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First foreigner to receive Private Pilot’s License in China…
Cyrill EltschingerCEO, I.T. UNITED