BPO in China: Reality and Potential

1. BPO in China: Reality and Potential Sept. 8, 2006 Xiamen Roc Yang, CDG

2. A real life example of outsourcing

4. BPO Defined “ BPO is the delegation of one or more IT-intensive business processes to an external provider who, in turn, owns, administrates and manages the selected process(es), based upon defined and measurable performance metrics.” Gartner Dataquest

6. BPO-Some key statistics 9.5 35.1 15% 234 2005 21 1.5 India ITES Exports 62.0 6.4 Offshored BPO Market 20% 5% Percentage Offshored to Countries such as India, Ireland, etc. 310 127 Total Business Process Outsourcing Market 2008 2001 (US $bn)

8. Can “World Factory” last forever?

10. Value Chain Migration as a country “ Made in China” “ Managed from China” “ Created by China” 0-9 years education 12 years-University level education University and above BPO KPO Manufacturing outsourcing

19. CDG Snapshots History Founded in 1998 as Cybersky Technologies and had been China’s Top Three Imaging System Integrator for the financial services sector. It was restructured into CDG with financial support from CDH, a leading private equity fund in 2005 to focus on BPO. Industries and Services Leveraging on the 8+ years experience in the banking, financial services and insurance sectors, CDG has established “One-stop Shop” business process outsourcing solutions around its mass production capabilities. Management Team The team came from consulting, System integration, IT outsourcing and the BFSI sectors. Their strength lies in their capability to leverage technology and industry know-how to turn BPO business into a low cost mass production in China. Facilities Network CDG’s main data processing operation is in Beijing with 600+ seating capacity on one shift basis. The Shanghai BPO Center is scheduled to open in June 2006. The third facility in Guangzhou is also on the agenda to serve the South China markets. Technology and Operations CDG has the industry’s leading Data Processing System that processes client’s transactions based on scanned images on a JIT basis. The system supports multiple languages and multiple clients simultaneously in a paperless environment.

20. Thank you!