| China's foreign economy in 2009, a noteworthy | | | | Indian Industry (CII) survey report recently predicted |
| phenomenon: the one hand, foreign trade continued to | | | | that by 2010, the Indian KPO industry will account for |
| decline in the number of consecutive utilization of | | | | the wealth created by India's economic growth rate of |
| foreign investment dropped 9 months on the other | | | | 46%, reaching 17 billion U.S. dollars. The results also that |
| hand, China's service outsourcing emerged bucked the | | | | the Indian services sector is expected to maintain an |
| market trend. First half of 2009 China's service | | | | annual growth rate of more than 8%, and the service |
| outsourcing revenues reached 3.3 billion U.S. dollars, an | | | | sector's share in GDP will exceed 51%, for India KPO |
| increase of 43%, population of 290,000 new jobs. | | | | from BPO turn lay the foundation for the |
| A specific example of Jiangsu Province in 2009, 1 May, | | | | transformation. This means that India will greatly |
| Jiangsu Province outsourcing industry grew by 300%, | | | | enhance the adoption of KPO outsourcing industry, |
| which increased 430% in Nanjing, Suzhou, grew by | | | | gold content. |
| 67%, 80% growth in Wuxi, Kunshan are even more | | | | The pharmaceutical industry, biotechnology, IT industry, |
| staggering - growth of 470%. China the fastest | | | | intellectual property research, automotive and |
| growing outsourcing industry growth figures are | | | | aerospace industrial design and development of KPO |
| Chongqing, the first half of service outsourcing | | | | These are the times where the dominant industries. |
| contracts in 2009 grew 2500%, implementation grew | | | | While in India the outsourcing sector, this transformation |
| 1600%. | | | | of KPO center in India has many advantages: excellent |
| Why is the general malaise of the international | | | | network of research laboratories, a good basic |
| economic situation, China's service outsourcing industry | | | | industries, rich bio-diversity, extensive clinical trial |
| can outshine others, to accelerate the development | | | | opportunities and trained manpower and Chile excellent |
| of? | | | | resources, These will be the driving force of India |
| "China and India have almost unlimited resources, skilled | | | | towards KPO. In fact, with more multinationals to |
| labor, coupled with the Internet structure with no time | | | | transfer data and intellectual property research |
| and distance constraints of global delivery platform, so | | | | business to India, India's IT industry will benefit greatly |
| that every individual, every company, every country will | | | | from this. |
| face front of a new competitive environment. "Liu Jiren, | | | | China and the KPO brushed past? |
| chairman of Neusoft Group, believes that any one | | | | KPO is growing, and the Chinese outsourcing industry |
| industry can not avoid this kind of competition, including | | | | seems to be no ready. |
| those in Western countries, led by services and | | | | According to the KPMG study reported that, KPO |
| research and development, basic research will be | | | | services to the global market in 2010 will reach 17 billion |
| followed after the manufacturing to Asia转移. | | | | U.S. dollars, only the financial sector will be up to 50 |
| In 2009, Neusoft to develop the international market | | | | billion U.S. dollars. |
| continue to intensify efforts to accelerate the process | | | | In absolute terms of the number, KPO market size is |
| of internationalization in consolidating and improving its | | | | also far below the ITO and BPO, the latter two size of |
| market dominance in Japan, while the success of its | | | | the market in 2010 will reach 290 billion U.S. dollars and |
| acquisition of Finnish SESCA the three companies, | | | | 191 billion U.S. dollars. But in terms of compound annual |
| completed the layout of European and American | | | | growth rate, KPO45% compound annual growth rate |
| markets. First three quarters of 2009, Neusoft | | | | of 6.2% is much higher than ITO and BPO growth rate |
| international outsourcing revenue rose about 30%. | | | | of 9.7%. |
| "Everyone knows China is the world's low-cost | | | | To be sure, the financial tsunami triggered by shuffling |
| manufacture of goods, but I have heard and seen, | | | | effect will force the West's financial institutions to step |
| China is used as a high-tech products manufacturing | | | | up cost-cutting efforts, the traditional high-end research |
| and research and development selectively. Engineers | | | | and development, analysis, innovation and |
| in developed countries will lose their competitive edge, | | | | decision-making value chain will continue to be refined |
| unless they are willing to spend and have the same | | | | and outsourcing. Unstructured Operational businesses |
| skills of engineers in China and India the same wages. " | | | | will continue to be structured and standardized in the |
| Similarly, in 2008 the Chinese government announced | | | | future of Western financial institutions of the BPO |
| plans to invest 4 trillion yuan to stimulate domestic | | | | tender years, more and more to see for the KPO |
| demand for infrastructure construction, the decline in | | | | business needs. |
| exports to force Chinese manufacturers to enhance | | | | KPO the traditional BPO service providers to enter a |
| product innovation and production efficiency, which are | | | | new round of research and technological upgrading. |
| all IT services will bring to a huge opportunity. | | | | High-quality personnel will continue to join the ranks of |
| According to IDC data, in 2009 China's service market, | | | | BPO, India's BPO service providers with the |
| including domestic and offshore markets, related to IT | | | | collaboration of Western financial institutions and |
| services and business services, with a total capacity | | | | development will be stepping into a new level, which |
| of 24.43 billion U.S. dollars in 2012 is expected to grow | | | | will lead directly to a traditional BPO service providers |
| to nearly 40 billion U.S. dollars. | | | | to enter a "vertical subdivision business" the |
| Outsourcing gold content to upgrade | | | | professional market. |
| China's outsourcing industry started in the most basic | | | | Currently in China the vast majority of KPO business in |
| to Japan ITO (Information Technology Outsourcing, IT | | | | India's branch in China; most of the local outsourcing |
| outsourcing) starting point for developing the current | | | | service providers, the focus of attention are still in ITO |
| European and American markets BPO (Business | | | | and BPO business, of course, even the ITO and BPO |
| Process Outsourcing, Business Process Outsourcing). | | | | areas, businesses have begun to increasing emphasis |
| BPO was first originated in the 90s last century, the | | | | on high value-added work. However, if companies |
| foreign bank's cost-reduction measures. Financial | | | | believe that through the accumulation of experience in |
| institutions as a Party to provide financial-related IT | | | | the field of ITO and BPO, KPO will be able to for a |
| technologies and business processes to provide | | | | smooth transition to the field of fully prepared, then it is |
| business operations by the B treatment, such as | | | | not realistic. |
| telephone service center. As in the service during the | | | | "There experience in ITO and BPO companies to |
| course of the continuous in-depth understanding of | | | | engage in KPO, there may be a little advantage, but I |
| business processes, a number of the business of | | | | think this experience is neither required nor is important |
| outsourcing services along the value chain to high-end | | | | because KPO and ITO, BPO is completely different." |
| continuously extending into the knowledge-based, | | | | KPMG Information Technology Consulting , global |
| focusing on process innovation, market research and | | | | managing partner Egidio Zarella that the strategy and |
| business analysis in areas dominated will become a | | | | operations can not be confused, so KPO and BPO |
| KPO (KnowledgeProcess Outsourcing, knowledge | | | | can not put together a level of measurement, very |
| management, outsourcing). | | | | good BPO personnel are trained before they can turn |
| If the entire outsourcing likened a pyramid up from the | | | | to KPO. In addition, because KPO knowledge, |
| bottom of the pyramid followed by ITO, BPO, KPO, | | | | experience, attention, to some extent the |
| outsourcing company, skills, and management | | | | characteristics of one to one, in maintaining a greater |
| requirements for successive increase. However, in the | | | | degree of difficulty on the client. For the KPO vendors, |
| process of climbing up, then packages the business | | | | talent is the most important, how to find and retain the |
| side margin has gradually improved its competitors | | | | best talent is the key to success. |
| declining, the market space is in a prominent | | | | In the outsourcing industry, India has the largest |
| amplification. | | | | imaginary enemy, as Chinese companies to exist, as |
| KPO is knowledge of the most attractive place to | | | | compared to India, either ITO or BPO, China has |
| arbitrage involves outsourcing more highly skilled | | | | always been in the catch-up position. While the long |
| processes, rather than desperately reduce costs. It | | | | term, China will become the KPO field first or second |
| has changed people's outsourcing industry, | | | | place, but now very few people pay attention to this |
| "labor-intensive, simple business operations" in both the | | | | market and the characteristics of the market research |
| impression that "high value-added, knowledge-intensive" | | | | in KPMG's latest research report, China was not even |
| in the new face of the emergence of the traditional | | | | as outsourcing destinations included in the scope of the |
| outsourcing model of a leap from quantity to quality. | | | | study. Assumptions after ten years, 170 billion U.S. |
| From the world's outsourcing market structure point of | | | | dollars of the KPO market in India's exclusive 120 billion, |
| view, India is the middle layer of the BPO to KPO | | | | which is 70% of the market share. |
| struggling to climb the highest level. Confederation of | | | | |