Xi’an Software Park delegation will visit Silicon Valley at Oct 11th

September 29, 2009 — outsourcing01

Xi’an Business Network A Delegation led by Mr Liming Zhu, the Deputy Director of Xi’an Software Park will visit Silicon Valley at Oct 11th. Xi’an Software Park is a national software industrial & export base and is one of the first Service Outsourcing Base Cities established by the Central Government.

Founded in December 1998, Xi’an Software Park is located within the Xi’an High-tech Industries Development Zone, a special economic-expansion area entitled to government tax benefits and other incentives. To date, Xi’an Software Park has attracted more than 630 software and outsourcing enterprises both from within China and abroad, with more than 50,000 employees.

LOCATION & TRANSPORTATION: Xi’an is the largest major city in China’s portion of the new Eurasian continental bridge. The city is located in the center of China and is about a 2-hour flight from both the capital, Beijing, and the major coastal city of Shanghai.Park which is one of the 5 certificated Hi-Tech Parks in China by Central Government to recruit and attract overseas to either Start up business or work inside the park. Mrs. Dang has more than 15 years experience in the hi-tech park, and witnesses the hi-tech park from nothing to the well developed area which ranks top 5 nationwide in comprehensive category issued by many authorities.

During the event, valuable information as below, but not limited to, will be brought on for your consideration:
1). General policy issued by central government for attracting overseas to start up business or work in domestic enterprises.

2). General background about Xi’an city, including infrastructure, business and living environment, resources and competitiveness advantages as well as overall industries

3). Attend panel discussion to learn successful stories presented by oversea returnee and share experience

4). Job-openings and other opportunities

Official registration site:

http://spreadsheets.google.com/viewform?formkey=dFlxcVc1RWNmYi1XVUxpZ0dSRFFYa1E6MA&pli=1


Due to limited seats, please make your reservation as early as possible. If you have any questions, please do not hesitate to email atdc@knowledgesurf.com orGaiusW@knowledgesurf.com.

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Outsourcing: The Demise of the Offshore Captive Center

July 6, 2009 — outsourcing01

CIO.com. By Stephanie Overby. The offshore captive center was once the Holy Grail of offshore outsourcing. As companies got a taste of the cost savings possible by outsourcing IT and business process work to lower cost countries, they began to salivate over the thought of bypassing the offshore vendors (and their pesky profit margins) altogether and saving even more money by setting up their own service shops in India.

But today, those offshore captive centers have become drain on many of the companies that created them—so much so that some organizations are desperate to divest themselves of their offshore units.

In October 2008, financial services leviathan Citi announced a deal to unload its offshore business process outsourcing center to Tata Consultancy Services (TCS). Citi made a similar move last month when it sold its captive Indian IT services unit to Wipro. Also in May, outsourcer Capita Group snapped up a 600-person captive center owned by insurer AXA. And earlier this year, the Economic Times of India reported that IBM and Infosys were bidding on Fidelity’s offshore back office operations.

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These companies weren’t the first big name corporations to back away from their commitment to captive service operations in India. Over the past two years, AOL, Aviva, Prudential UK and Philips—among others—have put their offshore IT and business process services subsidiaries on the block.

And, analysts say, they won’t be the last to get out of the Indian services business.

The Changing Economics of Offshore Outsourcing

The global economic recession is a major motivator of these divestitures. According to Gartner, captive centers represent a large, fixed cost for companies—and one that has been growing due to inflationary pressures and exchange rate fluctuations. The near-term benefit of getting those subsidiaries off the books is of great value to struggling companies, particularly those in the most hard-hit sectors of the economy, such as financial services.

“There are a number of drivers for [these transactions],” explains David Rutchik, a partner with outsourcing consultancy Pace Harmon. “And one is to generate some cash.”

Such transactions, generally, reflect the reactionary nature of most decisions to insource—or outsource—operations offshore. “Long-term cost savings have rarely been the driver for significant outsourcing decisions in the past,” explains Scott Feuless, a senior consultant with IT consultancy Compass. “It’s generally been more about meeting short-term budgetary goals: getting assets off the books, temporarily improving cash flow, or all of the above. Companies are realizing that they may have to change their sourcing decisions from time to time to continue getting the most bang for their buck.”

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