310 likes | 432 Views
Innovation Across Borders Partnering for Success. March 2012. iSoftStone – History & Development. Strengthen ERP capabilities in global marketplace B reakthrough in Smart City and Healthcare. 2011. Listed on NYSE (NYSE: ISS) Increased penetration of high-end BFSI market.
E N D
Innovation Across Borders Partnering for Success March 2012
iSoftStone – History & Development • Strengthen ERP capabilities in global marketplace • Breakthrough in Smart City and Healthcare 2011 • Listed on NYSE (NYSE: ISS) • Increased penetration ofhigh-end BFSI market • Established Wuxi iCarnegie Institute • Established sales team in Europe • Implemented regional growth strategy 2010 • 24 delivery centers • 11,750 employees • (As of Sept 30, 2011) • US expansion • Launched BPO service 2009 • Substantial R&D investment in solutions • Aggressive expansion into Tier-2 cities • Entered Korea & Japan market • Gained scale through acquisition • Founded in Oct 2001 • 19 delivery centers • 9,285 employees 2008 • 16 delivery centers • 7,676 employees 2007 • 14 delivery centers • 4,205 employees 2001-06 • 9 delivery centers • 3,116 employees • 6 delivery centers in 2006 • 40–1,527 employees
iSoftStone Snapshot – Leadership in China IT Services Employees1 Over 14,000 Sales and Delivery Centers 24 in total, of which 17 in Greater China Clients2 Over 80 Fortune 500 companies Net Revenue by Geography3 56% Greater China clients, 44% Global clients Net Revenue by Service Offering3 29% Consulting &Solutions, 67% IT Services, 3% BPO Services Track Record of Strong Growth YoY of 50% CAGR of 92% CAGR of 57% Net Revenue4 (US$mm) Headcount5 1 As of March, 2012 2 For the 12 months ended Sept 30, 2011 3 For the 9 months ended Sept 30, 2010 4 Total revenues from operations, less business taxes 5 Based on period end numbers
Global Presence and Resource Distribution Hamburg London Kirkland Boston Seattle Tokyo Osaka New York Fukuoka Hiroshima Beijing Yancheng Dalian Zhenjiang Chengdu Tianjin Xi’ an Wuxi Wuhan Shanghai Hong Kong Taipei Guangzhou Shenzhen US / Europe Japan Greater China • London • Hamburg • Hong Kong • Taiwan • Boston • New York • Seattle • Beijing • Tianjin • Dalian • Xi’an • Shanghai • Wuxi • Nanjing • Hangzhou • Wuhan • Changsha • Chengdu • Zhenjiang • Guangzhou • Shenzhen • Yancheng • Tokyo • Osaka • Fukuoka • Hiroshima Nanjing Hangzhou Changsha On-shore, Near-shore and Off-shore Services to Clients Globally
End-to-End Suite of Services across Industry Verticals Industry Verticals Consulting Consulting and Solutions Benefits of a Comprehensive Service Offering Solutions • Multiple growth drivers • Large addressable markets • Cross-selling opportunities among services • Deep penetration of clients Application Development & Maintenance IT Services Communications Banking, financial servicesand insurance (BFSI) Technology Energy, transportation and public sector (ETP) Research & Development Services Infrastructure & Software services Industry Specific BPO Functional Common and Consistent Business Processes
Numerous Third-Party Accolades 2011/2010/2009 China Top 10 Leading Service Provider 2009 Red Herring Global 100 2011/2010 IAOP Global Outsourcing 100 ISO9001:2008, ISO27001:2005 2010 China’s Best Employer Enterprise • 2011/2010/2009 Top 100 Chinese Enterprise for Software Sales Revenue 2010/2009 China Outstanding Corporate Citizen 2006-2009 Deloitte Technology Fast 50 China
Global and Greater China Marque Clients • Industry Verticals • Global Clients • Greater China Clients Technology Communications Banking, Financial Services and Insurance (“BFSI”) Energy, Transportation and Public Sector (“ETP”) Other
Success Factor #1: Strategically Established U.S. Headquarters
1 2 3 4 5 6 Key drivers to select the Pacific Northwest Favorable business climate Highly educated and experienced IT resource pool Marque companies in high-tech, bio-tech, aerospace, telecom, retail…, that spur innovations International environment, nearest port to Asia from Mainland U.S. Strategic engagements with diverse blue-chip clients Revenue & size have grown 8 fold since early 2008 Well positioned to sustain high growth, scale profitably and maintain a leadership position
iSoftStone Wuxi iSS Wuxi Expansion Phase I Completed: Oct. 2010 Square Meters: 38,000
Cloud Computing Center in Wuxi Collaboration with IBM • OverviewWuxi wanted to build a data center as part of their supporting platform for IT Services. In collaboration with Wuxi K-Park and IBM teams, iSoftStone carried out design, implementation, testing and transition
World Class Training Through iCarnegie Institute iCarnegie–iSoftStone Institute • Training center located in Wuxi • Jointly owned by iSoftStone, Wuxi and iCarnegie • Utilizes technical curriculum and professional certifications developed and maintained by iCarnegie Inc., an affiliate of Carnegie Mellon University • Annual training capacity of up to 10,000 students • Tailored training programs • Long term curriculum (4+ years) • Short term program (1- 6 months) • Provide on-the-job training as well as distant learning program • Graduation exams and review from on-the-job trainings for hiring and placement • Tailored training for clients with client specific materials and client internship • All courses taught in English
Go to Market Together iSoftStone as a GTM Partner and System Integrator GTM Process GTM Experience Go to Market Partners In addition to its own proprietary solutions, iSoftStone has implemented over 150 GTM partner products for more than 60 customers. Industry Targets Healthcare Organizations Telco Operators Manufacturing Domestic Consumer Goods • iSoftStone has a 50 person solutions sales team organized by region and industry that participate in go-to-market efforts in Greater China (and about 33% have 10-12 years of experience from organizations like IBM and Oracle) • 2009 GTM revenue is $15M (via VAR agreements and Systems Integration) • iSoftStone has been an active GTM partner with Microsoft MCS Industries Served Banking • Insurance • Telecommunications • Energy and Utilities • Manufacturing
360° Partnership Partner Business Productivity & Collaboration Go-to-Market Partner Business Intelligence (BI) Mobile Application Development & Infrastructure Web Application Design & Development Customer 100% Genuine Advantage Compliance Vendor Consulting Dual-shore & Pure Offshore IT Outsourcing Business Process Outsourcing iSoftStone has supported Microsoft as a strategic vendor for almost ten years. We are currently on the approved vendor list (Global AVLS) for Project Management/Consulting, Web Development, Application Development and Testing Services. iSoftStone offers Microsoft consulting and IT outsourcing services in addition to go-to-market opportunities for sell-through of Microsoft technologies. iSoftStone maintains its integrity as a customer of genuine Microsoft software. We have signed an Enterprise Agreement including Software Assurance benefits for several Microsoft product suites to support our business. 16
Connected Health Innovation Lab 3-way Partnership between iSoftStone, Microsoft, Wuxi City Government
Doing Business in China From an IT Services Perspective
IP Protection & Data Security • Laws, regulations • Contractual commitments • Enforcement: civil, criminal and administrative • 24x7 guarded building • Card access to offices • Restricted access to the server rooms • Segregated network • Other security measures implemented based on each client’s requests • International standards, security policies, processors, training, monitoring • ISO27001 compliant corporate policies, procedures and enforcement Client • Background checks • Regular security training • Individual NDA
Talent Pool More honor students than total students in the U.S. About 400,000 new engineers every year. Rapidly improving quality Overseas talent returns to China – over 100k a year Challenge: very experienced software architects are rare
Recommendations to U.S. Service Providers in China Provide focused services in a good targeted market Grow or expand through present clients in the U.S. that are expanding into China Start from your core competencies and domain expertise Develop a China BU with a balanced mix of practices
Innovation Across Borders Contact us: Weiling Li Weilingl@isoftstone.com 206-353-1570