某公司外包投资项目咨询报告课件

路漫漫其悠远路漫漫其悠远少壮不努力，老大徒悲伤少壮不努力，老大徒悲伤少壮不努力，老大徒悲伤少壮不努力，老大徒悲伤2024/7/1某公司外包投资项目咨某公司外包投资项目咨询报告询报告路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂AGENDA Executive Summary Call Center BusinessMarket OverviewCC Customer Segmentation-In-house users-OutsourcersDemandCustomerEconomicsCompetitionRecommendations-Success business model-Partnering strategy E-Commerce Market OverviewTCI TianjinCurrent Situation AnalysisRecommendations路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂AGENDA Executive Summary Call Center BusinessMarket OverviewCC Customer Segmentation-In-house users-OutsourcersDemandCustomerEconomicsCompetitionRecommendations-Success business model-Partnering strategy E-Commerce Market OverviewTCI TianjinCurrent Situation AnalysisRecommendations路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂CHINA IS BECOMING A HIGHLY DYNAMIC CC MARKET Chinas call center market took off since 1998 with an annual growth rate over 100%Non-paging market size reached 54,000 seats in 2000 However past growth was largely driven by demands from administrative driven sectorOver 60%of the new CC demand comes from four pillar industries:Banking,Post Services,Fixed-line Telecom,and InsuranceDistinctive purchasing behavior identified for these purchases Future growth will be propelled by service oriented and outsourcing segmentsService oriented segment expected to be 50%of total CC marketOutsourcing market will grow at least 50%a year for the next few years-However large variance exists for outsourcing segment growth Overall,China CC market is expected to reach over 130,000 seats in 2004 and 340,000 seats in 2010路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂CC OURSOURCERS ARE EMERGING BUT STILL EXPLORING(I)Currently,CC outsourcing business is brand new in China No more than 30 companies providing merely about 3,200 seats in serviceOver 70-80%supply concentrated in 4 major cities Future outsourcing development is highly dependent on current players performance and strategiesPotential customers concerned about quality,confidentiality,information processing ability,HR,and priceGrowth will fluctuate widely according to the industrys ability to satisfy customer concerns and requirements now In short term,competition will be minimum due to highly differentiated positions and large number of unexploited potential outsourcing customers In medium term,paging companies can be powerful and desperate competitors in the low-end outsourcing marketThat might distort the industry profitability and trigger vicious competitionHowever high-end outsourcing market might be intact路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂 Currently,only low-price/standard service vendors are profitableUtilization,and therefore,long-term customers,is the key for profitabilityHowever,high-priced outsourcing solutions not widely accepted by the marketBut in the long-run,we believe high-end services will be valued by customersWe are encouraged by recent positive news on clients long-term commitments to high-end outsourcersWith Chinas pending WTO Entry and continued economic growth,we believe its the direction High-end outsourcers can win the game by aggressively establishing long-term client base,and targeting various outsourcing opportunities along the value chainFive successful strategies identified for new customer developmentTelemarketing and value-added information service most likely to be outsourcedCC OURSOURCERS ARE EMERGING BUT STILL EXPLORING(II)路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂TCI SHOULD PARTNER WITH RIGHT LOCAL CC OUTSOURCERS A partnering strategy is essential for TCI to capture the great opportunities in ChinaTCI lacks a bunch of local capabilities,while time is contingent TCI should target both money making,and money losing tech advanced outsourcers during negotiation process,based on two plausible partnership strategiesMoney making ones:share profits and leverage local strengthMoney losing ones:control and negotiate for a bargain dealConsidering the limited number of candidates in China and TCIs tight schedule,a broader search can strengthen TCIs negotiation positionFive promising outsourcers identified during the interview processMoney making ones:China Motion,800 Teleservices,and Compaq-StarMoney losing ones:TCY,ITS Shanghai路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂EC:ONLY SOFTWARE FIRMS AND SIs WORTH PURSUING Although under booming,China E-Commerce market are experiencing bottlenecksOnline population and revenues grew 10 times in the past 3 yearsHowever,macro-environment and infrastructure are problematic and only few ICP/ISPs are making money ICP,ISP and technology companies,as a sector,are not worth TCIs pursuitICP:Market is down while most China ICPs are still at their early stage developmentISP:Highly fragmented and regulated,which suffocate both foreign participation and profitabilityTech companies:Superior ones can hardly survive in China However,several top ventures in the above sectors are quite interesting,which are identified and illustrated in detail for TCIs further interestICP:;S;A;DISP:263Net;Eastnet 路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂TCI-TJ:RSTRUCTURING AND BUILDING STRATEGIC ALLIANCES TCI-TJ experienced difficulties due to both promotion and management issuesThough improving,the firm is intrinsically uncompetitive in China market It should restructure for better performanceRedefine corporate missions and strategiesRestructure project arrangement,reporting,measurement and incentive systemsRefocus its sales on Japanese companies in China and in Japan and find strategic alliance for TCIs China expansionTCI should only partner with prestigious local software company or system integratorsWiseway screened all the potential candidates lists and funneled down 5 most promising companies for TCIs further contact-Longshine;Global eForce;eBIS;Modern Computer;Huateng Software路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂AGENDA Executive Summary Call Center BusinessMarket OverviewCC Customer Segmentation-In-house users-OutsourcersDemandCustomerEconomicsCompetitionRecommendations-Success business model-Partnering strategy E-Commerce Market OverviewTCI TianjinCurrent Situation AnalysisRecommendations路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂CC MERELY A BUSINESS PRACTICE BEFORE 1997High telecom chargeLow phone penetrationWeak service attitudeWidespread industry monopoly-Commercial CC less than 10,000 seats in 1997(2)-Phone call charge-(cents per minute)-China-US-Phone penetration(%)-#of phones(1)-(million)-1997-82-53-99-229Automotive Example:Expert Survey1997PriceCompetition focus(%)-(1)Fixed line+mobile (2)Excluding about 50,000 seats in paging company-Source:World Development Report 1999/2000;China Auto Market 1997;Jarding Fleming Research;interviewsQualityService StyleNational monopolyBankingTelecomInsuranceUtilitityRegional protectedSteelAutoPetrochemicalTobacco.-Monopolized industry estimated 55%of industrial output路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂Higher telecom penetrationCOMMERCIAL CC TOOK OFF SINCE 1998Especially in Non-Paging Service SectorPenetration(%)YearCAGRFixed lineMobile37%83%Non-paging CC seats(000)Year-CAGR=129%Intensified competitionMost industries capacity over productionDeclining retail pricesYearGDP indexRetail price indexIndexGrowing awareness of technologyInternet users(mio)E-Commerce revenue(US$M)Gradually reduced telecom fee-Source:Jarding Fleming Research;China-Statistics Yearbook;interviews;OECD;-China TelecomLong distance(RMB/min)(1.2)(0.8)(1.0)(0.7)800 km3518-35 RMB 10 million-RMB 5-10 million-RMB 1-5 millionSource:Huicong IT Business NetworkICP路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂SIGNIFICANT TRANSITION AND SHAKEOUT EXPECTEDSmall-to-medium,generic information service portals will face bankruptcy in a yearRegional portals with similar business will seek merger to survive in the coming shakeoutB2B will focus more on providing proprietary,value-added services(online and offline)to small-to-medium corporate customersLarge corporations will extend its corporate web site into B2B or B2C areaOnly the top two to three E-Commerce web sites in each area will survive-Huicongs Projection100%Under current volatile market,Wiseway believe market situation can only go harsher than Huicongs projectionSource:Huicong IT Business NetworkEnterpriseE-CommercewebsiteOthersTechnical serviceInformation serviceICP路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂SELECTED ICP PROFILE:51JOB.COM-Company background-Strengths and weaknessesEstablished in 1998No.1 job search online site in ChinaOver 30,000 jobs postedRegistered users over 100,000Potential to provide HR services for foreign-invested companiesTargeting white-collar workers and managerial level customersStrengthsNo.1 job hunting portal in China,established brand name and customer baseSynergies with“Career Weakly”magazine and a heal hunting firmWeaknessesLittle information about job/career advisoryStill small:vulnerable to competition-Revenue source and financial data-Alliances1999 revenue reached US$1 million,2000 revenue projected to be US$8 million,and 2001 revenue to be around 20-30 millionCurrent profitability 10-15%1/3 advertisement income,1/3 revenue from ASP service,and the rest from providing information of its HR databasePlanned Nasdaq IPO in 2001Synergies created by building alliance with traditional HR functions-“Career Weekly”magazine-Career Head Hunting CompanyICP路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂SELECTED ICP PROFILE:STOCKSTAR.COM-Company background-Strengths and weaknessesEstablished in 1997No.1 stock trading portal in ChinaBusiness covered quote,information,advisory and online trading servicesRegistered users over 1.5 millionPositioned to provide not only trading but comprehensive investing servicesStrengthsEstablished customer baseComprehensive services on trading,information and advisoryGood relationships with security firmsWeaknessesNo stock trading licenseProjected competition in the future-Revenue source and financial data-AlliancesRevenues from securing companies advertisement,online trading commission,and data usage fees to institutionsPlanned to expand revenue sources to construct online site for security companiesOnly less than 10%cuts on promotion,50%cash flow consumed on infrastructure and 15%on R&D Goldman Sachs second round financing of$10 million,based on$40-50 million valuationShanghai Alliance Investment Co.and Shanghai Telecom controls 20%stake,respectivelyICP路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂SELECTED ICP PROFILE:ALIBABA.COM-Company background-Strengths and weaknessesEstablished in 1997No.1 B2B portal in China,ranked the best Asia B2B portal in 2000 by Far East Economic ReviewRegistered members over 420,000,representing 220 countriesDaily trading involves 50,000 buyers and 12,000 sellersProvide quotes,industry information and advisory through 27 industriesStrengthsFirst mover advantageOne stop shop especially convenient for international tradingWorldwide recognitionStrong VC tackingWeaknessesScalability not demonstratedB2B not hot concept anymore-Revenue source and financial data-AlliancesRevenue from trading information fee,registration,and advertisementStill not breakeven,but analyst quite optimistic about its financialsNew registration reaching 1000 members a dayFirst round financing of$5 million capital infusion by Goldman Sachs,Transpac,Singapore TDF,Investor AB and Fidelity Investment-October,1999Softbank invested$20 million in January 2000Planned but postponed IPOICP路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂SELECTED ICP PROFILE:DANGDANG.COM-Company background-Strengths and weaknessesEstablished in 1996No.1 online bookstore in ChinaBook online storage over 200,000 types,accounting for 90%of all domestic published books20%registered users are resided in foreign countriesEstablished transportation and inventory systemStrengthsCustomer recognition and national reputationBusiness already reached scaleDeveloped order to delivery systemWeaknessesSevere competition:more than 300 online bookstoresPending alliance with publishers and book stores-Revenue source and financial data-AlliancesRevenues from book retail margin and publishers advertisementBreakeven expected this yearA new,10 K square metre warehouse is under construction in BeijingFirst round financing completed in 1997Second round financing completed in November,1999Third round financing by IDG,LCHG and Softbanks completed by April,2000ICP路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂ISP:A HIGHLY FRAGMENTED SECTOR WITH VOLATILE PROFITABILITYISP/ASP-Highly fragmented-Not profitableOver 5001234 M5 nationwideISPs(1)500 regional/local ISPsIn deficitProfitable-ISP an attractive local government investment areaPotential of high returnAble to create monopoly locallyNumerous agency costsEquipment purchaseAppraisal of“New Economy Mindset”from the aboveMore budget/HR to manage and controlSignificant upfront investment and fast upgradeDemanding frequent capital expenditureHigh marketing expenses and maintenance costMarket still smallOnly 16.9 million internet users(July 2000)Much smaller if only focusing on local market(1)They are:ChinaNet;ChinaGBNet;UNInet;CSTNet;CERNetSource:CIIC:China Info Bank 路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂FOREIGN PARTICIPATION IN ISP ONLY ERECTED IN NEAR FUTURE ISP/ASP-Chinas WTO entry signed-2001-2002-2003-2004-2005-Post-entry condition-Pre-entry conditionSource:EIU;China Info Bank-ICP-ISP-Officially,no foreign ownership in internet services sector(both ICP and ISP)is allowed.Yet foreign investment is known to have entered the ICP business via alternative path-30%ownership allowed in Beijing,Shanghai&Guangzhou-49%ownership allowed in other 17 cities-50%ownership allowed nationwide-49%ownership allowed nationwide-25%ownership allowed in Beijing,Shanghai&Guangzhou-35%ownership allowed in major cities路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂ISP SECTOR WILL CONSOLIDATE THROUGH BOTH VERTICAL AND HORIZONTAL INTEGRATIONSISP/ASP-Many current ISPs are not profitable due to small subscriber baseI.e,a 2M bandwidth line needs to attract at least 1650 customersOf all 28 inter-provincial ISPs,only 13 have more than 1000 subscribers after 2.5 years of service,let alone local ISPs,with even smaller baseFuture competition will only worsen the situationOnly sizable ISPs can provide satisfactory servicesBoth domestic and foreign players will raise wars on price and service-Merge with nationwide ISPs to become an affiliate-Extend business to leverage ISP advantageASP(?)ICP Infrastructure路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂SELECTED ISP PROFILE:263.NET-Company background-Strengths and weaknessesTop ISP Provider in China:40%market share in Beijing,with another 40%by China Telecom,and the rest 20%by other 170 ISPs in Beijing;Top ICP site with 6 million registered users and 25 million pageview each day;263 IDC started in Beijing,and will also be in Shanghai,Guangzhou and 20 other cities;Shareholders simple but diversified:corporate and personal;strong backing from China Telecom.StrengthsBig market share in BeijingGood combination of ISP,ICP and IDC,maximizing the customer base;Profitability;Started in Beijing,but are also spreading to Shanghai,Guangzhou,Wuhan,XiAn and 10 other Chinese cities WeaknessesBusiness scalability in other cities-Revenue source and financial data-Alliances15 million RMB profit the first year,and has been profitable in the past three years;Internet connection fees collected from telephone bills;IDC serving coporate customers,providing E-commerce solutions;ICP()is also shifting to E-commerce business Good alliance with China Telecom(Beijing)Alliance also with other international hardware suppliersHave not heard of backing from international VC ISP/ASP路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂SELECTED ISP PROFILE:EASTNET-Company background-Strengths and weaknessesEstablished in 1996 by BJ Telecom,Bank of China,and Tsinghua UniversityBusiness covered dial-in connection,domain registration,and ECBuilt as a general information portalAlso provided online and offline tech product sales,consulting and trainingStrengthsBig loyal customer baseWidely covered business scopeWidely established alliancesProfitableWeaknessesLocalized:in Beijing area-Revenue source and financial data-AlliancesBoasted to be profitable for 3 yearsRegistered ISP users over 150,000,growing at 10,000 members per monthHomepage visited by 130,000 people per dayHelped 3,000 domestic companies to register a domainAlliancwe with a lot of prestigious ICPs and ISPs-S-China Television NetworkContent sharing with major tourism,stock trading,entertainment and online book reading portalsAllying with China Yellowbook on database developmentISP/ASP路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂NON-GOVERNMENT BACKED TECH COMPANIES CAN HARDLY SURVIVE IN CHINATechnology company-Lack of customersChinese companies accustomed to import tech/equipmentsIncapable to commercialize high tech solutionsNo big need for technology-Problematic legal environmentPatent rights inadequately reinforcedWidespread piracyStrong local protectionism Lack of intellectual property concepts-Inaccessible financing channelsDomestic financial institutions hostile to startupsForeign investors blocked from specific technology development due to national securityVery complicated formalities for non-SOE financing-Insufficient human resourcesTop-tier engineers and scientists finding their home in US or other more tech-friendly countriesChinese educational institutions unable to catch up with best-of-breed technology development-China is not a playground-for high technology-research companies路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂CHINA REPRESENTS GOOD OPPORTUNITIES FOR EC SOLUTION PROVIDERSIncluding Software Developers and System Integrators Chinese manufacturing and service enterprises are in desperate need of better information and control system to compete effectivelyMany companies dont have any MIS in place yetWTI and strong competitive pressure will push the demand There are demonstrated successful business modelsSoftware companies are successful by either serving domestic clients or working on overseas assignments(Hua Teng)System integrators establish themselves by getting recognized industry expertise and relationships Resources are easily locatedHR for software and SI doesnt need to be top-tier world-class,and thus are easy to findNo need for big investmentSoftware/SI路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂SOFTWARE:GROWING INDUSTRY WITH HIGH-LEVEL CONCERNSMass Market Software ExampleSoftware/SI-Market still fragmented-Price still too low-Moderately growing software industryScale(Bio RMB)689211213817612%25%63%System softwareSupporting softwareApplication softwareMkt shareMkt share office software 1999Price(RMB)Source:China Info Bank Year路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂AGENDA Executive Summary Call Center BusinessMarket OverviewCC Customer Segmentation-In-house users-OutsourcersDemandCustomerEconomicsCompetitionRecommendations-Success business model-Partnering strategy E-Commerce Market OverviewTCI TianjinCurrent Situation AnalysisRecommendations路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂TCI-TJ EXPERIENCED TREMENDOUS DIFFICULTIES(I)Most projects not profitableOverhead out of controlRev.Profit rate16%-170%35%51%61%69%98%100%1999(000 RMB)508997257517581990Gross profitSalaryManagement feeDepre.Misc.Source:TCI-TJ;BCG analysis路漫漫其悠远路漫漫其悠远锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂锲而不舍，金石可镂TCI-TJ EXPERIENCED TREMENDOUS DIFFICULTIES(II)Programmers turnover is worryingUtilization rate is lowHuman resourceFrom official statistics,on average about 1/3 of programmers working hours were not staffed,real situation can be worseReal estateThe whole second floor was empty,while a depreciation of RMB 2.4 million,60%of 1999 revenue,is counted each year as costProject schedule often out of controlLabelProgrammers turnover(7)(1)(20)(5)(4)17