1. Software & Service Outsourcing in Guangdong 广东软件与服务外包产业 Dec. 2010 广东软件出口委员会 理事长 孟 霖 Mr. Simon Meng, Director-General Guangdong Software Outsourcing Council

2. Outline 大 纲 1. 1.Overview of Guangdong and Guangzhou 2. 2.Software industry in China and Guangdong 3. 3.Software outsourcing in Guangdong 4. 4.Software outsourcing strategies 5. 5. 2008 年末，广东常住总人口为 9544 万人，比上年增加 95 万人，增长 1% ， 2009 年广东年末常住人口 9638 万人， 较 08 年增加 94 万人，增速放缓。

3. Overview of Guangdong province Gateway to Asia Pacific:   Boarders Hong Kong and Macau   Access to In-land China Area: 179,800 km 2 Population: 96.38 million Location:South China Major Cities:   Guangzhou, Shenzhen, Zhuhai, Foshan

4. About Guangdong Province (2009 Data)AmountGrowth Rate GDP ￥ 3908.159 billion RMB 9.5% GDP per capita ￥ 40,748 RMB （ $6000USD ） 8.4% Disposable personal income ￥ 16,206.05 RMB 9.1% Surging and biggest economy in China Surging and biggest economy in China  Accounted for 11.65% of China’s GDP 1/3 of total commodity exports of China 1/3 of total commodity exports of China Largest manufacturing base of the world Largest manufacturing base of the world

5. 2009 Guangdong Software Industry No. of Software Enterprises2872 Software GDP (RMB Billion)1730.22 Software Product System Integration Services Embedded Software IC Design Outsourcing&Exports 542.12 428.8 268 482.96 8.33 46.78 Profits (RMB Billion)332.2 Taxes (RMB Billion)139.4

6. 2008-2009 Guangdong Software Industry comparison Category/Year2008(RMB Billion) 2009(RMB Billion) Growth rate Total1414.871730.2222.3% Products1012.64542.12-46.5% System Integration 123.76428.8246.5% Services176.6426851.7% Export28.2546.7865.6%

7. 2009 Guangdong Software Industry Overview Total industry revenue biggest in China Total industry revenue biggest in China   197.84 billion RMB, Growth rate 31.1 ％ Strong growth in Pearl River Delta region(10 cities) Strong growth in Pearl River Delta region(10 cities)   Accounted for 99.8% of Guangdong’s total amount   Growth rate 31.3 ％ Software export No.1 in China Software export No.1 in China   Total 10.5 billion USD ， increase 15.5 ％ Number of registered software product 1 st in China Number of registered software product 1 st in China Embedded software sector No.1 in China Embedded software sector No.1 in China  55.6 billion RMB  Accounted for 35% of China’s total amount Major Software Companies Major Software Companies  15 Nation’s Top 100  33 Key National Software Companies  34 listed software companies

8. 2007 年 7 月 3 日 Guangdong Software Outsourcing Council (GDSOC) GDSOC was initiated by:   Department of Science and Technology of Guangdong Province   Department of Information Industry of Guangdong Province   Department of Foreign Trade and Economic Cooperation of Guangdong Province   The secretarial office is based on Guangdong Software Association. (from 2007, Guangzhou Software Development Council)

9. Guangdong Software Outsourcing Council (GDSOC) Founded on May 18, 2006 Chairman:   Dr. Choi, Koon Shum from Hong Kong   Chairman of Sun Wah Hi-Tech Group Director-General   Mr. Simon Meng (former vice president of Lenovo Group) 2007 年 7 月 3 日

11. Core Function   Goal ： Promote Guangdong/Guangzhou software & service outsourcing industry   Direction ： GDSOC operation is based on Government Steering, Enterprises Leading, Community Participating, and Market operation   Strategy ： Open the International market, and bring in international standard software outsourcing projects to China. 2007 年 7 月 3 日 Guangdong Software Outsourcing Council (GDSOC)

12. 2007 年 7 月 3 日 Guangdong Software Outsourcing Council (GDSOC) Interfacing: Interfacing:  To promote “Outsourcing in Guangzhou” branding  Organize conferences and trade shows Adapting Adapting  To assist local software and service companies to attend overseas conferences and trade shows.  Encourage Foreign companies to enter Guangdong Enabling Enabling  To enable local Software Industry open to overseas investment.  Promoting CMMI, ISO certification Lifting Lifting  To lift service outsourcing to be the driving force of service industry in Guangdong. Training Training  To tap service outsourcing workforce training.

13. 2007 年 7 月 3 日 Guangdong Service Outsourcing Companies ODC:   HSBC Global Technology, AIA, Bank of America, AXA, Accenture, Sierra Atlantic, Cathy Pacific   East Asia Electronic Data Processing Customer Care, Call Center:   HSBC, China EliteInfo, ChannelBeyond, DYXnet Telecommunication embedded software and System Integration   Huawei, ZTE IT Solutions, Infrastructure   Sunwah, Bamboo, Achievo, Visionsky, GZIDC Software Exports   ZWCAD, TechCAD R&D:   Microsoft, IBM, Intel, Ericson, China Mobile, China Telecom Japan Market   Transcosmos

14. Summary: Why Guangdong? Stable Business Environment and Strong Economy Stable Business Environment and Strong Economy  Gateway to Asia Pacific and in-land China  Surging economy and strong government support  Stable, well-off society and moderate cost  Strong Investment in outsourcing Mature Infrastructure Mature Infrastructure  Up to date Communicational networks, Wireless Coverage  World class Air, sea and road transport networks  Mature, and well developed Industrial Parks Abundant Workforce Abundant Workforce  Hundreds Universities and Colleges  Huge supply of engineers and college graduates Fast growing ITO, BPO sector Fast growing ITO, BPO sector  CMMI certified companies and rising  Competitive price compares to India  Multinationals subsidiaries, ODCs P&G, Amway, IBM, Accenture, Intel, Microsoft, HSBC, AIA, AXA P&G, Amway, IBM, Accenture, Intel, Microsoft, HSBC, AIA, AXA

15. Dec. 2010 Thank You!