Tuesday, October 5, 2010

Bangalore, Dalian, China-style heavy road test

August 4, together with eight ministries and the Ministry of Commerce around the Software Park in Dalian held a "seminar in some cities of service outsourcing," Dalian was awarded the "China Service Outsourcing Base City", Dalian is now trying to establish its field of software outsourcing in China leader status. But the significance of the forum, along with the Dalian Software Park to competing in Beijing's Zhongguancun Software Park did not attend the meeting, or even ignorant.

"Indian software companies face competition, the key is not a simple government-led provision of preferential policies, and software outsourcing enterprises to improve the overall strength of the formation of orderly competition." Assistant general manager of Beijing Zhongguancun Software Park top depths chin said. Currently, six software export bases in China, Dalian has many multinational companies and the Japanese outsourcing business; Beijing is China's largest software export base, the software has the highest value.

While "The World is Flat" book, Dalian is known as the "Bangalore of China", but Dalian to become a true "Bangalore of China", but also the long road ahead.

Why Dalian

Ministry of Commerce in the August 4 "Dalian Conference", Dalian Software Park as the host wrote, "service outsourcing recognized standards" and "development policy" of the Proposal, including standards, training, tax policy, industry organizations. Model identified as the Ministry of Commerce Park, Dalian Software Park's work has been Vice Minister of Commerce Ma Xiuhong and other recognition.

The favor of the Ministry of Commerce is not without reason, in 2005 software revenue Dalian more than 10 billion yuan, Software Park, which contributed 50%. May 30, Ma Xiuhong in Dalian Dalian Software Park Co., Ltd. President listening to high-Wei's report, immediately let him in the Ministry of Commerce, "Foreign Investment Conference," Why outsourcing services introduced successfully in Dalian. June Dalian was designated as "development outsourcing services" model.

The first half of this year, with Oracle, AVAYA, NCR, NTT arrival of four companies, Dalian Software Park has attracted, including IBM, Accenture, SAP, HP, etc., settled 26 multinational companies, many enterprises and even bring to their customers.

These diseases add to the high-Wei waist no time to rest, "I basically do not intend to go home recently, and there are too many things to do."

"We started with the contacts from the Dalian Software Park Dalian Software Park stationed until the year after, is in constant quarrels in the spent." GE (Genpact) Chief Executive Officer Wang Hill jokes, "the special requirements of the outsourcing industry, such as power , the Internet, the surrounding environment, building structure must be professionally designed so start Dalian Software Park and did not consider them. But they quickly improve these areas. "

GE specially for the international restaurant, received from around the world managers and investors, the park's software engineers are now able to enjoy international food company "Eurest" rich specially prepared lunch.

With Dalian Software Park, executive vice president Zheng Yu as saying: "As long as multinationals are willing to look at the software park will definitely have to have them stay."

Talent Crisis

Months, Zheng Yu and his colleagues to go from around the Software Park, Dalian Software Park to find resources with complementary businesses. With the growing number of enterprises, has been plagued by a serious shortage of human resources software company garden. Although the Dalian municipal government of Dalian is also aware of the importance of talent, many organizations, companies in Japan, the United States for recruitment, but the effect is not obvious.

Dalian and Xi'an University of Technology is soft, Harbin Institute of Technology co-ordered Japanese talent. "A few thousand dollars per person, school fees for the Central and soft. But sometimes it is a pressing problem, had to borrow from other companies." Wang Xiaobin said, "more than we encounter a business problem. Almost 100% of Japanese enterprises want to outsource in China. "door more and more customers, but because not enough people pick list, these companies generally trouble.

After more than a year of study, GE (Genpact) decided to open a company in Changchun, the Chief Executive Officer Wang Shan said: "This is the company's needs first, followed by China, not all Japanese talent concentrated in Dalian." Current Dalian's four graduates of the University's annual software can not meet the business needs. Dalian Software Park last year, cooperation with the IBM mainframe training, more than 200 students before they graduate by businesses looted.

BearingPoint Global Development Center in China, Xu Xiong, general manager of introduction, "in early 2002 when the cost advantage of the talents of Dalian is relatively large, and now easy to find the right people, prices rose more than 2 times four years ago." BearingPoint established in 2004 in Dalian Global Support Center, also encountered in India before the talent shortage problem.

According to informed sources, the Dalian Software Park and Wuhan East Lake New Technology Development Zone will be reached between the two sides may be 50% of each holding, the total share capital of 50 million yuan to set up a joint venture to establish relevant policies and public service system and carry out service Outsourcing, alleviated by the talent shortage.

Next Bangalore?

Bangalore, India, tens of thousands of frequently compared to large enterprises, Dalian to become a well-deserved, "China's Bangalore," There is still a long way to go.

In addition to Neusoft, Hoi Fai, China and Japan a few letters outsourcing enterprises, Dalian, Europe and the United States outsourcing business without good. Most Dalian Enterprises said: "Instead of investing heavily to develop U.S. and European markets have not been effective, not as guarding the Japanese outsourcing more secure." But the Japanese outsourcing market trend will eventually saturated, but also to make them unable to stop U.S. and European markets.

"Bangalore, Dalian, China to do, you have to do Europe and the United States outsourcing business." DHC technical director Zhang Limin that "Japan will eventually be saturated, 35 years, we hope that the domestic market, Japan, Europe and the United States market, three-legged walk. "As the first outsourcing companies to Japan, DHC two years ago trying to enter the European markets. "Companies began to develop a loss index, but even this limited budget, who can come in handy too little, with European market experience and accumulation of too little, it is difficult to meet customer expectations."

Zhang Limin do not believe that this new access to Europe and the United States market, relying on its own efforts and enterprise support policies can be resolved. At least for now, DHC Japan compared to European and American business outsourcing 25% of annual growth also appears to be negligible. "We hope the Government will develop a long-term strategic planning." But the Dalian High-tech Park and the Software Park, last year organized 10 enterprises, each devote 30 million yuan investment common to Europe and the United States market, ultimately because of "too little, and did not receive any orders. "

"Lack of overall image may be China's service outsourcing industry is facing the greatest difficulties." Gartner Group Vice President Jamie Popkin (responsible for China, India, South Korea Strategy) states that "compared to the software outsourcing business in India only publicity and promotion agencies Nasscom (India's National Association of Software and Service Companies), the Chinese cities go it alone, the phenomenon remains a serious competition with each other. "

There is information that the Ministry of Commerce and Trade in Services Division Ministry of Information Industry Software and Integrated Circuit Promotion Center is to discuss joint team in October of this year held in the U.S. Gartner Outsourcing Conference (the year is the largest software outsourcing conference), and may jointly establish a national-level service outsourcing regulators. Driven by the Ministry of Commerce, Dalian Software Park led service outsourcing industry in China Research Center, currently under preparation, the consultants will be companies from across the country and overseas institutions and government departments together constitute more than 40 experts.

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