In medium term, paging companies can be powerful and desperate competitors in the low-end outsourcing market
• That might distort the industry profitability and trigger vicious competition • However high-end outsourcing market might be intact
Future outsourcing development is highly dependent on current player’s performance and strategies
• Potential customers concerned about quality, confidentiality, information processing ability, HR, and price
Overall, China CC market is expected to reach over 130,000 seats in 2004 and 340,000 seats in 2010
-4-
CC OURSOURCERS ARE EMERGING BUT STILL EXPLORING (I)
• Growth will fluctuate widely according to the industry’s ability to satisfy customer concerns and requirements now
In short term, competition will be minimum due to highly differentiated positions and large number of unexploited potential outsourcing customers
However past growth was largely driven by demands from administrative driven sector
• Over 60% of the new CC demand comes from four pillar industries: Banking, Post Services, Fixed-line Telecom, and Insurance
E-Commerce Market Overview
TCI Tianjin • Current Situation Analysis • Recommendations
-2-
AGENDA
Executive Summary
Call Center Business • Market Overview • CC Customer Segmentation - In-house users - Outsourcers • Demand • Customer • Economics • Competition • Recommendations - Success business model - Partnering strategy
E-Commerce Market Overvieuation Analysis • Recommendations
-3-
CHINA IS BECOMING A HIGHLY DYNAMIC CC MARKET
China’s call center market took off since 1998 with an annual growth rate over 100% • Non-paging market size reached 54,000 seats in 2000
ENTRY FOR PROFIT TRANS-COSMOS INC. CHINA ENTRY STRATEGY
PRESENTATION
February 8, 2001
-1-
AGENDA
Executive Summary
Call Center Business • Market Overview • CC Customer Segmentation - In-house users - Outsourcers • Demand • Customer • Economics • Competition • Recommendations - Success business model - Partnering strategy
-5-
CC OURSOURCERS ARE EMERGING BUT STILL EXPLORING (II)
• Distinctive purchasing behavior identified for these purchases
Future growth will be propelled by service oriented and outsourcing segments • Service oriented segment expected to be 50% of total CC market • Outsourcing market will grow at least 50% a year for the next few years - However large variance exists for outsourcing segment growth
Currently, CC outsourcing business is brand new in China • No more than 30 companies providing merely about 3,200 seats in service • Over 70-80% supply concentrated in 4 major cities