【正文】 ource: Interviews GENERIC SERVICE DEFINED AS A CROSS OF INDUSTRIES AND FUNCTIONS Generic service Functionality ? Message taking and delivering ? Simple order taking ? Standard telemarketing ? Standard customer question answering ? Standard valueadded information service Industry ? Paging industry ? TV/catalogue selling ? Utilities collection ? “ Secretary” services Backup GENERIC CC USERS HAVE STRONG INCENTIVES TO OUTSOURCE Generic service Costeffective for small CC users Resolved concerns Satisfactory quality ? Standard practice and trained agents Trusted human resources ? Professional agents, central recruited and trained, familiar with their jobs No need for information processing Little requirement on confidentiality (1) Assume 10 seats, and utilization 100% Source: CTI forum。 BCG modeling TV selling example 111 3 . 81 . 44 . 12 . 75 . 6S a l a r i e s C o m m u n i c a t i o n D e p r e c i a t i o n O t h e r c o s t s T o t a lCost (?000 RMB) per month per agent 1012 Selfbuild(1) Outsourced AGENDA Executive Summary Call Center Business ? Market Overview ? CC Customer Segmentation Inhouse users Outsourcers ? Demand ? Customer ? Economics ? Competition ? Remendations Success business model Partnering strategy ECommerce Market Overview TCI Tianjin ? Current Situation Analysis ? Remendations FOUR DISTINCTIVE TRAITS FOR CHINA?S CC OUTSOURCERS Traits for An Emerging Segment Overview Outsourcer Just emerging High Geographic concentration Focus on generic services Interviews Summary Many are losing money Interviews Summary of outsourcers 32001000500510271998 1999 2023% 77%3%23%97%S e a t s P op ul a t i on(%) 35%26%22%9% 9%M e s s a g i n g T e l e m a r k e t i n gA f t e r s a s l e ss e r v i c eV O I P O r d e r t a k i n g Source: Interviews。 CTI forum。 China Statistics Yearbook of seats (?000) 36%9%55%P r o f i t a b l e B r e a k e v e n D e f i c i t(% of outsourcers) DEMAND PROJECTION DEPENDENT ON A CYCLE OF FACTORS Wide variance in projection... … dependent on a group of factors of outsourcing seats (?000) Virtuous or vicious cycle? Outsourcer?s Price Outsourcer?s professionalism Customer satisfaction Outsourcer?s service sophistication of new customer trial Education effect to potential customers Outsourcing industry reputation It?s hard to tell whether the industry can establish its reputation or go underdeveloped, at the very beginning of its emergence Demand Outsourcer CAGR = 100% CAGR = 20% CAGR = 20% POSITIVE CUSTOMER EVOLUTION OBSERVED IN CHINA?S OUTSOURCING BUSINESS Positive projections for future ? Historical trends showed increasing peration into highend business ? China?s massive smalltomedium business constitutes good potential customer base ? Massive unexploited geography: outside top 3 cities ? Good outsourcer will emerge with increased business, which will generate more business for the outsourcing industry Outsourcing service sophistication Time Low High Before Recent 2 years We believe in the positive argument and project demand to grow at least 50% a year for the next 4 years Paging service outsourcing for Hong Kong “ Secretary” service Simple telemarketing Order taking Aftersales service Negative projections for future ? Customer?s negative thoughts about outsourcer?s quality haven?t changed ? Professionalism will continue to be a headache for China service industry, including outsourcing ? Lowend entry (paging panies) will ruin outsourcing industry?s pricing structure and make good outsourcer?s unprofitable Demand Outsourcer BALANCE BETWEEN LONGTERM CLIENTS AND PERIODIC ASSIGNMENTS IS CRITICAL Customers Outsourcer Longterm clients Longterm clients are most important to the profitability of an outsourcer Job nature Customer requirement Compensation ? “ Secretary” service ? Ordertaking ? Aftersales service ? Valueadded information ? Others ? Trust between pany and customer ? Training to agents ? Good understanding of clients? business ? Smooth munication and feedback of important information ? A monthly payment per agent seat ? Telemarketing ? Campaign/activity phone reception ? Brand name in outsourcing industry ? Trained agents and effective management ? Information feedback ? Reasonable price ? Payment per call Periodic assignments INTERVIEWED OUTSOURCER?S LONGTERM CUSTOMER LIST Outsourcer Longterm client Outsourced business type Location Profitable? TCY Pfizer Pharmacy China After sales Beijing, Shanghai Deficit CCID Call Center China InfoWorld (Newspaper) Inbound service Beijing Deficit Guangzhou Mobile Highway Bridge Fee collection call out Guangzhou COMPAQ After sales Shanghai NEC Mobile China After sales Shanghai China Motion China Mobile Management outsourcing . Profitable Beijing Hongfan Sun Micro Systems Simple question handling . Channel Beyond Profitable Compaq Star Profitable Backup After sales “Secretary” service Fee collection call out Guangzhou Vanke Community service Guangzhou Beijing Tele Messaging service Beijing Deficit 95 info Nokia After sales (mobile) Beijing Deficit 800 teleservice Motorola After sales (mobile) Shanghai . ITS Pharmacy panies . Shanghai Deficit MULTINATIONALS NOT FULLY READY FOR OUTSOURCING Customers Outsourcer Multinationals need customer information to assist decision making ? Especially important in infoscarce China Confidentiality is also a big concern There are little established outsourcers in the