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Telecom Outsourcing In China

Telecom Outsourcing In China. Tony Chang 6/24/06. Topics. Outsourcing Strategy China Telecom Outsourcing Firms Strength & Weakness Recommendations Future Telecom Demands. Outsourcing Strategy. R&D Cost Reductions Market Perceptions Customer Support Accountability.

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Telecom Outsourcing In China

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  1. Telecom Outsourcing In China Tony Chang 6/24/06

  2. Topics • Outsourcing Strategy • China Telecom Outsourcing Firms • Strength & Weakness • Recommendations • Future Telecom Demands

  3. Outsourcing Strategy • R&D Cost Reductions • Market Perceptions • Customer Support • Accountability

  4. China Telecom Outsourcing Firms • Telecom Outsourcing is still in infancy stage • BJ, SH, CD, CC, SZ • Company size is small compare to India • Focus Area: • Product localization • Multimedia localization • Flash, video, audio • S/W Development • Localization testing • Functionality testing • Linguistic verification • Post-translation UI and UA testing

  5. Strength & Weakness Strength: • Large Resource Pool • Government Encouragements • Energetic & Enthusiasm • Cost Management • Market demands Weakness: • Communication, Communication and Communication • Large Scale Project Management • People Development

  6. BJ Outsourcing Firm Evaluation Summary • 2 BJ Local Outsourcing/Contacting firms -- Worksoft & Beyondsoft • Both have 800+ Software engineers • Mainly working on -- Localization, Testing, DBS Application, Financial Services, Server/OS Testing and minimum Telecom • Worksoft has more Global experience & focus -- IBM, Microsoft, HP, Oracle, SONY and PeopleSoft • Beyondsoft has excellent marketing strategy • LLR for both Contracting firms is around $30K • In general there are several Global Telecom vendors' R&D centers in China -- Alcatel, E///, LU, Motorola, Nokia, Nortel… but Telecom Outsourcing is still at infancy stage in China • The company will need to invest lots of efforts in Technical training/transferring at the initial stage and may lose some trained people in the future • Ideal way may be: find a new/small local company and set up the agreement/partnership to assure "Fixed cost" & "Attrition Avoidance"

  7. Recent Progress in BeyondSoft • BeyondSoft has about 1,000 S/W engineers now (grew 200+ people in 6 months) • Has just moved to a new campus • Can grow 200 engineers in 3 months Has lots of S/W Testing experiences • Can be On-Site/Off-Site • LLR for Telecom Engineer == $38K

  8. Ideal Outsourcing Model • Find a company that is eager to partner with • Set up the Fixed rate ($30-$35K) for the next 2-3 years • Working on the projects exclusively in the next 2-3 years • May invest some shares to this company • May send several key SMEs to the site for Training & Project Ownerships • May recruit some key retired industry leaders for short term assignment

  9. Future Opportunity IOT Service • Vendor funded, Existing Revenue stream with incremental growth potential Customer Acceptance Testing Service - Customer/Account Team funded, Existing Revenue stream with scope and revenue growth potential Multi-vendor System Integration • Un-tapped Revenue stream with large growth potential OEM Integration Service - Vendor funded, Existing Revenue stream with moderate to large growth potential System Integrity Assurance Service - Un-tapped Revenue stream with unknown growth potential (targeted regression)

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