Dalian——Your Ideal Destination

For IT Outsourcing

Group 2

By Dalian Outsourcing Association

龚晏张亚琼朱婧马夕明

Carrie GongSarah ZhangJimmy ZhuMary Ma

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郭贤峰邓伟仪保轶俊

Carl GuoHenry DengJeffery Bao

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Agenda

1 Overview of China IT outsourcing

2

3

4

5

6

7

Comparison of major destinations

Core competencies of Dalian

Potential risk

Future trend

A success case

Summary

1 2 3 4 5 6 7

Overview of China IT outsourcing

A global market size: $100 Billion in 2008.

China: Rapid development with 11 base cities.

Major advantages: a. A huge talent poolb. Low labor costc. A rapid developing and mature industryd. Rapid economic growthe. Strong government support

Figure: 2006 – 2010 Market share for China IT outsourcing

Predicted by IDC

1 2 3 4 5 6 7

Comparison of major destinations

Dalian Shanghai Beijing

Government Support

Very strong Strong Strong

Transportation, Communications & Infrastructure

Well-establishedMost well-

establishedWell-established

IT Human Resources

Resourceful Very resourceful Very resourceful

Maturity of IT industry

Very high High High

Labor Cost Low High High

Values & Culture Compatibility

Very strong Strong Fair

1 2 3 4 5 6 7

Core competencies of Dalian

An integrated outsourcing chain

Top choice of Japanese IT enterprises

Only area with BPO industry

With a pool of market leaders

E.g. Neusoft and Dalian i-Think Computer

Application of international standard

Dalian Software Park: highest internationalized

Figure: Software Company Configuration

Picture 1Dalian Software Park,

with the Yellow Sea in the background

Picture 2Dalian Ascendas IT Park

Picture 3Dalian Software Park in future

Picture 4Dalian Software Park model

1 2 3 4 5 6 7

Potential risk

Geographical inferiority

compared to Shanghai & Beijing

Insufficient reserve of IT talents

Further improvement in managerial expertise

Zhongguancun in BeijingZhangjiang Hi-Tech Park in Shanghai

1 2 3 4 5 6 7

Future trend

Vision: a leading city of global IT outsourcing

Strategy: City Brand Integration

Attracting IT talents with preferential policies

40000

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10000

15000

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25000

30000

35000

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45000

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1999yr 2000yr 2001yr 2002yr 2003yr 2004yr 2005yr 2006yr

Quantity of IT enterprises

Quantity of IT employees

1 2 3 4 5 6 7

A Success Case

Let’s Learn English: A language study software; August 2008

Reason of the success：a. Language capabilityb. Preferential talent policyc. Lower labor cost

Over 60% Japanese customers choose enterprises in Dalian

1 2 3 4 5 6 7

Summary

One of the earliest successful outsourcing citiesThe best location for Japanese clientsYou will get

a. Strong government supportb. A huge talent poolc. Well-grounded infrastructure facilitiesd. High-standard IT enterprises e. Visible cost savings

Welcome To Dalian!

Reference

Gartner reveals top 30 outsourcing locations http://www.computerweekly.com/Articles/2008/12/16/233929/gartner-reveals-top-30-outsourcing-locations.htm

Wikipedia--Definition of Outsourcing http://en.wikipedia.org/wiki/Outsourcing

China Sourcing （中国服务外包网） http://chinasourcing.mofcom.gov.cn

Dalian Statistics （大连统计信息网） http://www.stats.dl.gov.cn/

IDC http://www.idc.com.cn/

Dalian Bureau of Information Industry ( 大连市信息产业局 ) http://www.dlbii.gov.cn/