Outsourcing Canada & China Sourcing
Outsourcing is an important business strategy for multinational companies¡¯ global successes and Canada promoted ¡°Outsourcing Canada¡± at Gartner Outsourcing Summit in 2006 to 2008.
From Gartner's User and Wants Needs primary research in 2007 through over global service buyers: the top 5 countries voted by US and Europe buyers are India (89%), Canada (73%), Ireland (68%), Mexico (60%) and China (58%). Canada is No.2 in the world as global outsourcing destination!
Canadian service providers could achieve more successes if they could expand and venture into more markets. However the talent resource is always the main issue. The spectrum of Outsourcing talents are in 4 levels:
- Industry management leaders
- Senior project managers
- IT workers
Canadian service providers have full skill and sufficient talents at the top 2 levels (Industry management leader skill and senior project manager skill). But in order to expand market, Canadian companies need more cost efficient engineers and IT workers at the two lower levels. ?For this reason, partnering with China Sourcing for the above mentioned two lower levels could be a reasonable option for Canadian service providers.
Why China? ?Awareness of Chinese strength in engineering duration and high tech R&D, service buyers who are mature in global sourcing, and companies wanting to sell or manufacture in China ¨C gateway customers, etc. (source: Gartner research). And Chinese universities graduated over 5 million students in 2008 and 15% was IT related - that was over 750,000 trained work forces! ?This indeed is a very large engineers / IT resource pool for Canadian service providers to consider.
To support multinational clients to use professional service of Canadian service providers in Outsourcing to expand the global market, AMA has created the new business model - OCCS (Outsourcing Canada & China Sourcing): 1) setting up contract centres in Canada, 2) partnering with VC and Private Equity, and or 3) partnering or investing and acquiring Chinese service providers.? Under this arrangement, these new companies would sign the deals with global clients and then send part of the work load to the partners or invested / acquired companies in China to handle the labour intensive (engineers and IT workers) portion of the project.
To ensure the success of this model, AMA has worked in the China¡¯s outsourcing industry and maintains it close working relations with several state government agencies including Ministry of Commerce (MOC)-China Sourcing Working Committee and Ministry of Industry & Information Technology (MIIT)-China Sourcing National Aliance. Meanwhile AMA have worked with many Chinese service providers in 10 cities including Dalian, Beijing, Shanghai, Shenzhen, Nanjing, Chengdu, and Xian, etc.