| > | | | | 2006 revenues. VanceInfo provides information |
| There's been a significant debate about the pros and | | | | technology services primarily to corporations |
| cons of outsourcing in the technology field. The | | | | headquartered in the United States, Europe, Japan, and |
| controversy is that offshore workers, who do the | | | | China. The company's customers are often in the |
| same job but for less money, take away domestic | | | | technology, telecommunications, financial services, |
| jobs. This is particularly the case in customer service | | | | manufacturing, and retail industries. |
| departments at software companies. If you call up | | | | In its fourth quarter of 2008, the company's revenues |
| Microsoft customer service, you will very likely be | | | | grew 56% to 30.1 million dollars. Net income for the |
| talking to someone in India. | | | | fourth quarter was $5.2 million, representing impressive |
| But, the political debate about outsourcing is quite | | | | growth of 68% over the fourth quarter of 2007. |
| irrelevant in the business world, because capital will | | | | Revenues for all of 2008 beat consensus estimates at |
| always flow to the most efficient source of production. | | | | 102.7 million dollars, representing growth of 64% over |
| If a worker in India can provide the same or better | | | | 2007. Net income for full year 2008 was 16.2 million |
| customer service experience for less money, then 99 | | | | dollars, up 69% from 2007. |
| times out of 100, a business is going to chose this | | | | I think that companies like VanceInfo will continue to |
| option. | | | | flourish, even if there is a prolonged global recession. |
| In China, where labor is much cheaper than in India, the | | | | Corporations will always seek to allocate their capital |
| experience has less of an impact on our situation | | | | to those who provide the best service at the best |
| because of the language barrier. In Asia, however, | | | | price. The outsourcing industry in India is |
| China's information technology outsourcing industry is | | | | well-established, but it's still in early development in |
| flourishing by serving the needs of large Asian | | | | China, and this industry can only keep growing over the |
| companies and also global conglomerates that want to | | | | coming years. |
| develop products that specifically target markets in | | | | Profit Confidential |
| China. A software engineer in Silicon Valley may have | | | | LOMBARDI PUBLISHING CORPORATION |
| the talent to create great software programs, but if | | | | News, Analysis, and Information Services Since 1986. |
| you want to do business in China, you have to have | | | | One Million Customers in 141 Countries. |
| the skills and knowledge that only a local company can | | | | Lombardi Publishing Corporation |
| provide. | | | | Financial Publications Division |
| One small outsourcing firm that's doing very well right | | | | 350 Fifth Avenue, Suite 3304 |
| now is VanceInfo Technologies, Inc. (NYSE/VIT). This | | | | New York, NY 10118-3304 |
| fast-growing company is an information technology | | | | Copyright 2008; Lombardi Publishing Corporation. All |
| service provider and software development company | | | | rights reserved. No part of this e-newsletter may be |
| located in China. According to the company, it is | | | | used or reproduced in any manner or means, including |
| ranked among the top three Chinese offshore | | | | print, electronic, mechanical, or by any information |
| software development service providers for the North | | | | storage and retrieval system whatsoever, without |
| American and European markets, as measured by | | | | written permission from the copyright holder. |