China as ‘Number One’ in Global Outsourcing Market Earlier than Expected, if China Tackles Some Key Issues, Say China Experts, Temasys International, in Major New Report

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“Chinese authorities and suppliers must avoid singular focus on costs to create strategic advantage,” according to Singapore and China based consultants, Temasys International. China must follow a broad but clearly defined agenda if they are to succeed on the world stage. Recommendations from Temasys International are forceful in the direction advised to Chinese authorities and suppliers, and the recommendations provide unique and powerful strategic guidelines to help China reach the number one spot in the Global IT and Business Process Outsourcing Marketplace.

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Hard on the heels of the China Outsourcing Forum (Shenzhen June 8 – 10) where experts gave some up upbeat assessments of the Chinese industry and some criticisms as well, Temasys International launches a significant and important strategy directive aimed at the Chinese Government, Regional Governments, and Chinese suppliers. This directive provides an innovative and important road map to help China reach number one in the Global Outsourcing Marketplace.

Temasys Managing Director Bill Lewis says, “I strongly believe that China is poised to become a major global player in IT and Business Process Outsourcing -– probably sooner than most people think. But it will not be without hard work and a broadening of strategic direction for many companies; China cannot focus on cost as the only differentiator. There are many more forces at work, which Chinese suppliers must be aware of, and embrace, if they are to succeed.”

Chinese software suppliers have a huge home market and have been content to supply this burgeoning demand; few have ventured abroad – much to the disappointment of the Chinese Government. Less than 10 per cent of multi billion dollar Chinese software revenues come from exported services. But this will change. “The global marketplace is too attractive,” say Lewis. “We will also see demand driven growth as western companies seek ‘China Price’ in software and services – not just in manufactured goods.”

In a report entitled “China – Global IT Outsource and BPO Leader,” Temasys says Chinese authorities and suppliers must focus on three critical areas of expertise and attain excellence in each if they are to compete on the world stage. Focus on cost advantage is not enough to sustain long term business.

The critical areas of focus are (1) Managing the Relationship between Client and Supplier (2) Global Delivery Capabilities (i.e. technical and infrastructure) and (3) Attaining a high standard of relevant Industry / Process Knowledge.

In each of the three areas, Temasys advises authorities and suppliers to identify the performance attributes which allow them to compete equally on the world stage and those which will create winning strategies.

For example, “Managing Relationships” demands English language and cultural awareness and heavy marketing and relationship capabilities – which in turn requires $$$ investment overseas and in China, which Chinese suppliers have been reluctant to spend in the past. So a change in mindset is needed.

Based on extensive international research, the strategy directive presents new and powerful concepts. Authored by Temasys’ Managing Director, Bill Lewis, a Harvard Business School Graduate with over 18 years exposure to China and extensive international consulting experience, the 24 page report is available (free on request) in English and Chinese from Temasys International, Singapore. Request copy from mindy.tan @ temasy.com.sg. The report is also published on the China Observer website – http://www.chinaobserver.cn – under strategy recommendations (Chinese copy available from 18 June).

Temasys will publish further reports during the next quarter which develop the concepts to further detail and they offer services to specifically provide strategic route maps for individual clients - Government, Provincial Authorities, FIE Sponsors, and Companies (Suppliers)

For additional information, logo, artwork: +65 9436 6333 / +86 136 2021 6165

Interview Contact: +65 9839 5371 / + 86 1382 872 6165

Bill Lewis’ profile is available at http://www.temasys.com.sg (click on “people” tab).

Temasys International Pte Limited, 7 Temasek Blvd #21-02 Suntec Tower One Singapore 038987

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