Installed talent in tier 2 china cities-suzhou & chengdu

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The Reapot disccuss about Suzhou and Chengdu being an upcoming tier -2 city in China for setting up facilities

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Installed talent in tier 2 china cities-suzhou & chengdu

  1. 1. Installed Talent in Tier II China Cities – Suzhou& ChengduThis report is solely for the use of Talent Neuron clients and Talent Neuron Subscribers. No part of it may be circulated, quoted, orreproduced for distribution outside the client organization without prior written approval from Talent Neuron.
  2. 2. Talent Neuron Copyright and DisclaimerCopyrightThe material in this report is copyrighted. No part of this report prepared by Talent Neuron can be reproduced eitheron paper or electronic media without permission in writing from Talent Neuron. Request for permission to reproduceany part of the report may be sent to info@talentneuron.com. Customers are welcome to use an unlimited number ofcopies of the materials contained within this report. Furthermore, customers may copy any graphic herein for theirown internal purpose. Talent Neuron requests only that members retain the source name/logo mark on all pagesproduced. Please contact our Talent Neuron account manager at +1-408-716-8432 for any help we may provide.The report herein is the property of Talent Neuron (A Zinnov LLC Company). Beyond the membership, no copyrightedmaterials of Talent Neuron may be reproduced without prior approval.DisclaimerAll the information contained in this report is obtained through proprietary technology aggregation algorithms, humanexperts, network of domain experts, discussions with industry leaders, public and confidential information sourcesbelieved to be reliable. Talent Neuron makes no representations or warranties regarding the errors, omissions orcompleteness of any information contained herein and shall have no liability for the same. The report is provided solelyfor informational and marketing purposes and opinions must not be construed as advice, recommendations orendorsements. The reader of the report is advised to conduct an independent evaluation and form conclusions withrespect to the information provided.
  3. 3. 3Talent Neuron can help in selecting the right location by providing data, analytics and insights on Locations,Talent, Cost, Peer Group Footprint & TrendsLocation Analysis Understand the capability of each potentiallocation and make data driven decisions onsetup and expansionPeer and TalentInsightsUnderstand the capability of each potentiallocation and make data driven decisions onsetup and expansionEcosystem Analysis Understand the capability of each potentiallocation and make data driven decisions onsetup and expansionSource: Talent Neuron Website 3
  4. 4. CAPABILITIESTalent Neuron has assisted over 100 companies in their global location analysis and siteselection processEcosystem Insights Forecasts Industry/DomainWage InflationTrendsCompany TrackerMarket TrackerSkill Wizard Market InsightsTalent Neuron KEYFOCUS IS ON THETECHNOLOGY INDUSTRY.OVER 80% CLIENTS AREIN THE PRODUCTENGINEERING DOMAIN.ConsultingProprietaryData SourcesNetworkReportsWeb CrawlingExpertInsightsAnalyticsSurveys500+ GLOBALCITIES COVEREDSource: Talent Neuron6 DOMAINS35 FUNCTIONs150+ SKILL SETS4
  5. 5. PROPOSED APPROACH – Data Gathering and Analysis through BIG DataTalent Neuron will use data driven Big data principles (for large data analysis) which will providecomprehensive insights and transparency on the trends, current realities and opportunities in any locations100+ Job sites3,000+ CompanyCareer SitesUniversitiesSocial Media/Public ProfilesHadoopEngine(Big DataApproach)=Over 12,000Unique Dataelements foreach cityPatent DatabasesPublication/JournalDatabasesTechnologyContributor listsCommunity SitesConnectors (API / Screen Scraping)SkillAvailabilityLocationInsightsCompensationand CostTrendsPeerCompanyFootprintSource: Talent Neuron Website* Details not disclosed by the companySource: Talent Neuron Research and Analysis 5
  6. 6. 520+ Cities~12,000 Unique DataPoints Per City9 Domains &400+ Skills~7,500 Companies &22 Million ProfilesModule 1: Talent Intelligence Module 2: Talent Analytics• Location Profiles• Talent Pool (Installed and Fresh)• Salary and Cost• University• Peer Companies• Monitor• Role Views• Job Engine• Top Brains• Public People Profiles• HR Data Consolidation• Peer Benchmarking• Decision Support Analytics• Workforce Planning• Skill Circles• Hypotheses Validation6Talent NeuronTalent Neuron has two module Talent Intelligence and Talent Analytics. Our data spectrum covers500 cities, 9 Domains and 400+ skill sets
  7. 7. Talent Neuron, gathers data from multiple sourcesData Mining from ConnectorsJob SitesCompanyCareer SitesSocial Media/Public ProfilesPatentDatabasesCommunitySitesTechnologyContributor ListUniversitiesPublication/JournalDatabasesSurvey Data fromCompaniesData from Govt./Industry BodiesData from LocalRecruitmentCompaniesData on City levelsuitability &EcosystemCorrelated dataon Talent,Cost, Peer companiesTalent Neuron PrimaryResearch & InterviewsNews Articles & PublicData – Crawling Engine7
  8. 8. Zinnov 8CHENGDU• Chengdu is China’s fifth most populous city and provincialcapital of Sichuan Province.• According to the World Banks 2007 survey report,Chengdu was declared "a benchmark city for investmentenvironment in inland China"• Currently, it is the top investment location in inland Chinadue to a large graduate population, low operating costs,most livable city reputation (western China), andgovernment’s efficiency in dealing with foreign investments• Chinas state council has designated Chengdu as thecountrys western center of logistics, commerce, finance,science and technology, transportationand communication SUZHOU• Suzhou has second largest economy in the Yangtze RiverDelta after Shanghai. It contributes 2.3% to country’s GDP• As one of the Satellite cities of Shanghai, its infrastructureis as good as any other Tier I city• With stable society, convenient transportation, beautifulenvironment, efficient government and considerateservice, Suzhou is most suitable to make an investment• Suzhou was ranked 5th on the Forbes list of ‘Best Cities forBusiness in Mainland China’ in 2010• Suzhou is considered as one of the world’s topmanufacturing location of laptops and digital camerasParameters Chengdu SuzhouCity Population(2011) 7,123,697 6,376,600MSA* Population 14,040,000 11,800,000Area 12,132 sq. km 8,488 sq. kmOfficial Language Mandarin MandarinLiteracy Rate 93.7% 93%Unemployment Rate 3% 4.3%Population Growth Rate 0.48% 2.44%Legally EmployablePopulation11,230,000 8,662,000Key IndustriesPharmaceuticals,ICT, Automotive,AerospaceICT, Electronics,Textiles, Chemical,Mech. componentsChengduSuzhouNote: *MSA – Metropolitan Statistical AreaSource: Doing Business in Chengdu; Invest in Chengdu – government website; Government of Chengdu. 2011-05-13. Retrieved 2012-03-16;Government of Suzhou. 2011-03-18. Retrieved 2012-03-18; Doing business in SuzhouLOCATION ATTRIBUTES: CITY OVERVIEWChengdu is the scientific and business hub of south west China; Suzhou is one of the mostimportant industrial centers in the Yangtze River Delta economic development zone8
  9. 9. Zinnov 9LOCATION ATTRIBUTES: CITY OVERVIEWSuzhou is amongst the eleven cities in China with GDP per capita of more than US $10,000$82$143$0$40$80$120$160GDPUSDBillionChengdu Suzhou$7,200$12,211$0$5,000$10,000$15,000GDP Per CapitaUSDChengdu SuzhouGDP Per Capita, 2010Foreign Direct Investments, 20104.88.3$0$2$4$6$8$10FDIFDIinUSDBillionChengdu SuzhouGDP, 201012%40%48%PrimarySecondaryTertiary(Service)Industry, 20102%57%41%Chengdu Suzhou• Suzhou was one of the first Chinesecities to cross the US $10,000 GDP percapita level in 2007• Chengdu’s GDP per capita has beenincreasing steadily from US $2,300 in2001 to US $7,200 in 2010. GDP ofChengdu showed a growth of 15% in2010• Suzhou’s economy boomed in the past twenty years. In year 2007, its utilized foreigncapital reached US $7.38 billion, the highest in the country. In 2010, Suzhou attractedan FDI of US $8.3 billion, with 92% utilization rate• Chengdu’s FDI is second in Western China, there has been a growing number of high-tech, software and hardware firms establishing themselves in Chengdu. Foreign directinvestment showed a steep increase of 73.6% in year 2010• Primary industry refers to agriculture, forestry, animal husbandry, fishery• Secondary industry refers to mining, manufacturing, electricity, water, gasproduction• In Suzhou, services industry makes up 38% of the total industries, incomparison with Shanghai and Beijing, where services industry make upto 57% and 75% respectively• Chengdu’s service sector already accounts for 48% of the economy and ispredicted to grow to 60% within the next 10 yearsNote:Source: Doing Business in Chengdu; Invest in Chengdu – government website; Government of Chengdu. 2011-05-13. Retrieved 2012-03-16;Government of Suzhou. 2011-03-18. Retrieved 2012-03-18; Doing business in Suzhou , Suzhou Statistical Report, 20119
  10. 10. Zinnov 10156,00048,00044,00025,50013,5007,50018,5006,000IT Services R&DChengduSoftware PD*SuzhouInstalledTalentPoolHardware PD*Software PD*Hardware PD*Total Installed Talent Pool, 2011Note: * PD – Product DevelopmentSource: Government of Chengdu – official website, Invest in Chengdu; Suzhou Statistical Yearbook 2011; Invest in Suzhou, Primary Interviews with various Stakeholders in China• Chengdu is more R&D oriented compared to other Tier - II cities• Suzhou is a kind of satellite city around Shanghai, it is more of a traditional manufacturing hub and can be developed into a GlobalDelivery Center.• Not many MNCs are present in Online Search Engines/Internet sector, so hiring has to be done majorly through the local companies• In general, the Chinese R&D talent is skilled in Internet/mobile technology. Lack of discipline in structured code writing may be anissueINSTALLED TALENT POOL: R&D TALENT POOL SPLITSoftware product development forms around 45 percent of the total R&D talent pool for bothChengdu and Suzhou10
  11. 11. Zinnov 1160%40%Engineering Gender Diversity92%84%80%60%8%16%20%40%0% 50% 100%Over 10Years6 to 10Years3 to 6 Years0 to 3 YearMale Female65%35%Male FemaleOverall Gender Diversity Ratio (Male/Female)ChengduSuzhouNote:Source: Invest in Chengdu; Suzhou Statistical Yearbook 2011; Talent Neuron Pool Modeler – 2009, 2010, 2011, Primary Interviews with various Stakeholders in ChinaINSTALLED TALENT POOLThe proportion of female employees in engineering sector decreases with increase in experiencelevel11
  12. 12. Zinnov 12Key MNCs Domestic CompaniesOracle JinTianMotorola Software HuaChengEricsson HiSoftHP VanceinfoEMC NeusoftMyriad BeyondsoftDreamwork ElegonGameloft lanxumSobey Digital Technology Co. WeflexforceDHL Chengdu Shuguang Optic Fiber NetworkMaersk Sichuan Xiyasheng Electronics Tech CoTencent Chengdu Huari Com. Tech. CoNokia Siemens Networks HuaweiAccenture China TelecomWipro China Mobile3i Infotech ZTENIIT SNDAIBM SymbioIntel KingdeeFoxconn Digital ChinaSAPUnisysZTEFujitsuSymantecAlcatel LucentTietoDamcoLafargeFreescaleAccorManulifeCisco SystemsDellKey MNCs Domestic CompaniesRobert Bosch Unitedinfo Worldwide CropEmerson Electric Nanjing Dema Technology CoHarman Isoftstone Information Service CorporationMicrochip Technology Masson Tech LtdNational semiconductor Senso Software CompanyFirst International Computer Anlysun Electronic R&D CoMotorola Shanghai WIK Network Tech Co.,LtdPanasonic Shenzhen Sinrui Technology CoSamsung Global-Standard Testing Service CoCommScope Beijing Morlab Communications Tech. CoPixelworks BI Consulting Group LimitedCiscoShijiazhuang Dingnuo Business Management andConsultationYageo IntL Safety Testing & Certification NetQimonda World Standarization Certification & TestingSchott SIEMIC Info Tech ltdFujitsu Promise Technical Consulting CoNALCO Shenzhen Pema Product Service CoNSK Global-Standard Testing Service CoPhilips Beijing Morlab Communications Tech. CoSeimensHPIBMiGate PatniChengdu – Other Software Companies Suzhou – Other Software Companies Sample ListNote:Source: Invest in Chengdu; Chengdu Municipal Bureau of Commerce, Chengdu HiTech park official website; Suzhou Statistical Yearbook 2011; Invest in SuzhouLOCATION ATTRIBUTES: CITY OVERVIEWSuzhou is amongst the eleven cities in China with GDP per capita of more than US $10,00012
  13. 13. Zinnov 13INSTALLED TALENT POOL: ATTRITION TRENDSAttrition rate is lowest in Chengdu, around 8%, as compared to other Tier II locationsKey Reasons0%4%8%12%16%20%Junior Level Middle Level Senior LevelExperience Level4-8%5 to 9%8 - 12%International Exposure OpportunitiesCompetitive Peer Group PressureLucrative Job MarketHigh Performance PressureLimited Autonomy in TeamManagementFear of getting type-casted with aspecific work profileManagement and Work CultureIssuesUnmet Job Role Expectations• The attrition rates are lower in Tier II cities as there are difficulties in mobility.This is a great incentive for MNCs as they can get a good employer loyalty• The attrition rate is also lower in organizations that provide comprehensivetraining and have a consistent corporate culture• The workplace environment and supplementary benefits play an important rolein facilitating retention efforts. Common benefits provided by companiesinclude supplementary meals, medical insurance, loyalty bonuses, performancerelated income payments, off-days on special occasions and housing allowances• A lot of foreign companies in Suzhou adopt these measures. Managementpositions appear to reap the highest rewards, with some companies paying outbonuses of more than three months salaries’ worth, subject to performance• MNCs are also facing the consequences of market overheating. According to arecent study, local privately owned enterprises are growing at a rate of 42%Note:Source: Primary Interviews with various Stakeholders in China , Press releases, Invest in ChengduAverage Attrition Rate in Software Industry in Chengdu and Suzhou13
  14. 14. Zinnov 14Average Time to Recruit Talent in Chengdu and Suzhou• Management candidates are often readily available but only at highersalary levels, and their demands may not suitably fit with the internalpayment structure of the whole company• This latest trend of high demands from candidates directly drives uprecruiting costs• In addition, detailed screening and background checks – more stringentlyneeded in China – add to time invested into the process• Typical hires ramp up in about 30 days• Staying rate of fresh graduates in Chengdu is around 60%DesignationHiring TimerequiredEntry Level Engineering (Software Engineer 1) 2 weeks – 6 weeksDeveloper 2 2 weeks – 6 weeksSenior Developer 4 weeks – 8 weeksPrincipal Engineer 6 weeks – 5 monthsManagement Level 6 weeks – 3 months Stock OptionsFlexible Working HoursLong Service RewardsEducation/Training incentivesEmployee RecognitionProgramsHigh Performance IncentivesMonetary Incentives/BonusesMeasures to Retain and Motivate EmployeesCareer ExpectationsFast track career growthAttractive pay packagesChallenging job profilesCompany cultureProfessional training & developmentGood prospects for high future earningsNote: Source: Employment and HR Trends in China, Primary Interviews with various Stakeholders in ChinaINSTALLED TALENT POOL: ATTRITION TRENDSMonetary incentives/ bonuses and employee recognition programs are the major measurestaken by the companies to retain and motivate employees14
  15. 15. Zinnov 15INSTALLED TALENT POOL: INNOVATIONTier I cities in China are far ahead on innovation index as compared to Tier II citiesInnovation Capabilities in Tier I and Tier II CitiesTier I cities like Beijing and Shanghai are high on innovation index.Beijing leads in the internet domain, followed by Shanghai.Tier I cities have skilled talent for niche segments like mobile technologies, data analytics, etc.Tier I cities have strong base for cutting edge technologies, which is absent in tier II citiesSuzhou is low on innovation index, specifically in internet domain as it is dominatedby the outsourcing industry. MNC presence in this domain is almost negligible.Chengdu is strong on innovation index in electronics domain. It has a number ofstate owned companies.Few MNCs and domestic companies are present in internet domain.Tier IcitiesTier IIcitiesNote: Source: Interviews with globalization leaders from peer companies, Talent Neuron portfolio analysis framework, Talent Neuron R&D Council and Talent Neuron city analysis framework15
  16. 16. For Detailed information on Location, Talent, Cost, Risks, University Informationcontact info@talentneuron.comTalentNeuronGlobalLocationProfilesGlobalTalentInsightsGlobalCost &SalaryInsightsUniversityOutlookPeerCompaniesMonitorRole ViewJobEngineerTalent Neuron PlatformTalent Neuron Platform provides granular data for over 500 cities in 83 countries. It tracks over 12,000 unique dataparameters for a city that spans across location attributes, talent pool size (Domain, Function and Skills), Universities,Salary and Cost etc.Source: Talent Neuron Website 16
  17. 17. THANK YOU4701 Patrick Henry Dr.Building 7Santa ClaraCA – 95054Phone: +1-408-716-843221, Waterway Ave,Suite 300The WoodlandsTX – 77380Phone: +1-281-362-277369 "Prathiba Complex", 4th ACross, Koramangala Ind. Layout5th Block, KoramangalaBangalore – 560095Phone: +91-80-41127925/6First Floor,Plot no. 131, Sector 44,Gurgaon-122002,Phone: +91 124 4420100 info@talentneuron.comwww.talentneuron.com@talentneuron

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