Blog about Virtual Assistant, Outsourcing, KPO, BPO and China

As the release of the fortune 500 companies list, the Chinese people are amazingly to see that there are 35 companies on the list (including the enterprises headquartered in Hong Kong, and Taiwan). With sales of $159.26 billion, Sinopec led the Chinese group at the 16th place, followed by State Grid, ranking 24 and China National Petroleum Corp (CNPC), 25. However, it’s easily to assert that the Chinese company, especially Chinese mainland company, the majority of those are state-owned companies and the business of them are concentrated on the realms of energy, financial and telecommunications.

US corporations occupied 153 places among the top 500, down from 162 a year ago, representing its worst performance in more than a decade. Japan had 64 firms on the list and France had 39, compared with Germany’s 37 and Britain’s 34. Moreover, there are 7 Indian companies also on the list.

Although we are glad to see that there are more and more Chinese firms emerging on the Fortune 500 list, but 19 out of the 35 listed companies are stated-own monopolized companies. Moreover, the business of those companies are relatively unitary.

After scanning the 2008 the Global Outsourcing Top 100, Accenture, Tata Consultancy Services and Hewlett-Packard are all ranked highly on the list. They are all worldwide joint-ventures, and their business is not limited by their major items. For instance, Tata is prominent enterprise located in Indian whose major business is iron and steel, and Hp’s laptops are shared a great reputation all over the world. But the outsourcing industry largely helps them to expand the scales of their business and make more profits for the head quarters, which contribute to the roaring revenues of the enterprises.

Infosys Technologies and Genpact are both the Top 100 Global Outsourcing companies and on the list of Fortune 500. On the contrary, most of the China mainland based companies haven’t put sufficient importance to the development of the outsourcing industry.

Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering firm costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources.

Above is the definition of the outsourcing. It is a trend for the world to concern about the development of outsourcing industry. In addition, there’re more and more large-sized firms to start to run the outsourcing business in order to obtain more benefits from the competitive global market.

Owing to the great progress made by Indian companies, Chinese companies should reconsider their market strategy and try to build the business on outsourcing.

Popularity: 8%

China Outsourcing, Internet and Hi-Tech Fortune 500, outsourcing industry

According to the recent news from China Daily, one of the Beijing based outsourcing company was awarded the China Best Outsourcing Provider during the 5^th China International Summit for Client Service. To better serve its multinational clients, the company opened branches and research & development (R&D) centers in the US, Singapore. On the purpose of tackling with the challenges raised by the appreciating of RMB and rising labor cost, the company moved to the city located in centre China, where it can enhance its R&D and service capabilities.

As the recent research demonstrates, each professional in Indian companies on average generates double the revenue of its counterpart in China-while the value create by each employee in US companies is among the highest. The leaves a wide space for Chinese software outsourcing firms to develop future up the value chain.

Thus, it’s a trend for the outsourcing companies to extend their business to other regions of the world. BPOVIA is one of the ambitious outsourcing companies planning to establish its branch in Chicago, Illinois. Besides, the staff from BPOVIA are all proficient, energetic and earnest. BPOVIA have the capacity for the tasks from data entry, office work to the tasks require more advanced skills like website design, graphic design, internet research, etc.

The opening of branch in other countries is one of BPOVIA’s strategic destinations. Owing to the wise choice, the foreign customs would contact with company more easily. In addition, it’s definitely a terrific opportunities for the firm to broaden the business and promote the popularity and image. What’s more, the chain company in other countries will help the custom to save the time and cost on the process of bargaining and negotiation, which would eventually help the customs to make more profits. By offering efficient and flexible service, clients can focus on their core business and gain a competitive advantage in the market.

Popularity: 8%

China Economy, China Outsourcing IT firm, outsourcing industry

Falling prices, discount offers and dwindling transactions, it seems that the real estate market is less attractive to individual buyers in China. On the contrary such a circumstance provides a good opportunity for the foreign investors to enter the market. It is said that some international groups have raised substantial capital for China property funds and are now developing the money, while others are moving capital from less vibrant markets in North America and Europe. Many international funds are also looking for mature properties in key cities, like Beijing and Shanghai.

Besides the local developer’s financing challenges also create opportunities for international investors. Due to the government policies aimed at limiting speculation in the residential property market, tighter monetary policy and the plummeting stock market this year, some less competitive real estate company get merged or acquired by the larger and wealthier developers. By June this year, the value of merger and acquisition deals involving mainland property has reached $15.29 billion which is 142 percent higher than that in the same period last year. And it’s harder for developers to obtain bank loans.

To raise money a lot of property firms offer initial public offerings. But as a result of the stock market plunge and global credit crunch, property security become out of favor. There are some small developers who would like to sell their projects and some listed real estate firms that acquired a lot of land parcel last year but find it hard to develop them now due to the credit crunch.

But the international investors should be cautious in conducting mergers and acquisitions, as the market is experiencing a shift from investment-orientated buying to self-use buying. And somebody thinks that compared with the company’s land reserve bought five years ago, the current price for mergers and acquisitions is not attractive enough.

Popularity: 6%

Investment China investment, merges and acquisition, real estate market, stock crunch

The new iPhone model makes its debut in the Asia-Pacific region today. In order to get one of the world’s first to grab the new-generation iPhone, fanatical Apple fans around Asia had queued up days before its launch, despite rain or freezing temperatures. By Friday, the line that had been had reached about 1,000 people. Signs went up that said the store had stopped accepting applications.
“This is the year that the cell phone becomes an Internet-connecting machine,” Softbank President Masayoshi Son told the crowd at the countdown ceremony. “Today is that day that will make it real, and it’s a historic day.” The iPhone is designed to browse the Web in much the same way computers do. The networks promoted by Japanese carriers, such as “i-mode” from NTT DoCoMo, are more closed than the Web. Such systems have allowed carriers to control services and charge fees.
A report from Japan said the iPhone’s had potential to change lifestyles and bring new business opportunities. Some people tend to spend an hour or more on daily commutes, and the iPhone could make Netsurfing more than reading or listening to music, it said. It is also said that the iPhone’s arrival could also change the relationship between manufacturers and carriers because of Apple’s clout. Up to now, carriers have had considerable leverage over manufacturers.
The celebration at Japanese carrier Softbank Corp.’s store, which included a digital clock display ticking away over the entrance, was part of a global rollout in 22 nations of the 3G, or third-generation, wireless connecting Apple Inc.’s much-hyped cell phone, an upgrade of the model that went on sale last year in the United States and several other nations.

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China Outsourcing change, debut, iPhone, Netsurfing