Strategic and operational guidelines for business opportunities in China, the world's fastest-growing market, are provided in a new report by two veteran international management executives. "China cannot be ignored and needs to be factored into your business strategy," say Neil Blakeman and Jon Aries.
"The current economic downturn compels business leaders to consider ever more urgently how they can increase global market penetration and acquire new customers, as well as reduce operating costs," the authors note. "In this respect, China provides a unique, timely set of opportunities... China has a compelling value proposition for offshore services and offers a diversification from traditional destinations such as Ireland and India."
The free, 14-page white paper, "The China Perspective; Practical Advice," analyses options for establishing and maintaining a presence in China to leverage marketing and sourcing opportunities. It gives an overview of four China engagement models, describing advantages and drawbacks of each.
The UK-based trade consultants discuss market entry opportunities and risks for Western companies in China. They also explore "a vibrant and capable services outsourcing sector," noting that Chinese business process outsourcing (BPO) providers are "increasingly creative and innovative." These are among other elements of the value proposition that Aries and Blakeman identify:
• Strong government support;
• First-class utility and telecommunication infrastructure;
• Mature physical and electronic information security;
• Abundant skilled labour;
• Worker attrition rates below the global industry average.
China offers outsource clients "excellent opportunity for location diversification from existing locations, lowering vendor exposure and geo-political risk," according to the new study. Moreover, it adds, the country is "emerging as an Asia-Pacific regional headquarters and services hub."
Companies that want to go beyond traditional approaches can "take service outsourcing collaborations a stage further with hybrid models based on 'build, operate and transfer' agreements," write Blakeman and Aries. That "offers an excellent way to overcome and reduce setup costs and timelines" as the local partner helps with recruiting, training, leasing, government relations and other logistic support.
Whatever model is applied, the global sourcing specialists stress, "Chinese partners -- including those from the vibrant outsourcing market -- can be used to overcome barriers to entry and avoid costly mistakes. Selecting the right partner is essential... Use local partners to leverage their experience and connections as well as creating imaginative sourcing solutions for goods and in particular services."
Their partner evaluation checklist includes confirming resource scalability and relevant vertical or process experience.
The white paper is distributed by CompuPacific Europe, a UK division of the CompuPacific International global outsourcing firm, and by Neil Blakeman & Associates, a management consulting firm in Devon, UK, that focuses mainly on China.
Aries, managing director of CompuPacific.Europe, is an IT and change management specialist who has travelled extensively in China and the Asia-Pacific region. His background includes in-depth knowledge of offshore outsourcing and transformational management.
Co-author Blakeman has two decades of commercial and public sector experience in the UK, China, Central Europe and other emerging markets. He is a former senior diplomat who served as the UK Government’s Director of Trade and Investment for China, based at the British Embassy in Beijing.
About CompuPacific Europe
CompuPacific Europe, Ltd. (compupacific.eu) is the European division of CompuPacific International, a global provider of business process (BPO), Computer aided design (CAD) and animation outsourcing solutions.
Founded in 1998, CompuPacific is one of China’s largest outsourcers serving corporate and government clients in Europe, North America, China, Asia and Australia. The company is on the Global Outsourcing 100 list from the International Association of Outsourcing Professionals (IAOP).