iSoftStone Information Technology ( Group ) Co., Ltd
A Corporate Overview from an Outside Perspective
May 6, 2010
As assessed by the EMBA students of:
Class 8 - Team “D” Kecia Edgar
Sheila Johnson Jose Marquez Jim Winlund
May 6, 2010
1
Table of Contents
1. Executive Summary .............................................................................................................. 2
2. Company Overview ................................................................ Error! Bookmark not defined.
3. Business Strategy .................................................................... Error! Bookmark not defined.
4. SWOT Analysis ..................................................................................................................... 5
4.1 SWOT Matrix ................................................................................................................. 6
4.2 Strengths .......................................................................................................................... 6
4.3 Weaknesses ...................................................................................................................... 9
4.4 Opportunities ................................................................................................................ 10
4.5 Threats ........................................................................................................................... 12
5. Conclusion/Questions .............................................................. Error! Bookmark not defined.
5.1 Execution Framework
Model…………………………………………………………………………………15
6. References ............................................................................................................................ 16
May 6, 2010
2
1. EXECUTIVE SUMMARY
iSoftStone Information Service Corporation provides business and information
technology consulting, and business process outsourcing services. It offers application
development and maintenance, packaged software, product engineering, system integration, and
infrastructure management services. The company provides ERP, supply chain management,
customer relationship management, enterprise application integration, enterprise information
portal, enterprise content management, and business intelligence solutions. It serves financial
services and insurance, telecommunications, high technology, media, energy and utilities, and
transportation and logistics industries, as well as government agencies in the United States,
Europe, Japan, Korea, and China.
iSoftStone bases its operation under three clear business strategies: growth is
obtained through mergers and acquisitions, financial Security, and high standards of quality for
their products and services provided. As consequence of these strategies, the company expects
to grow by more than 50% this year through mergers and acquisitions, and in order to support
this strategic move this past January, iSoftStone closed a round of financing led by Everbright
Private Equity, a leading red-chip financial conglomerate and shareholder of China Everbright
Bank. The company has also strategically strengthened its domestic commitment to its Japan
and Korea based clients.
The SWOT analysis concluded as strengths, iSoftStone has good quality cross cultural
trained employees and a management team of global reach. They fully utilize the governmental
incentives offered to the outsourcing industry and also have access to the required working
capital. The dependence on foreign markets, the quality of local graduate and post-graduate
educated employees, and the overall cultural disparities with the West were identified as
weaknesses. The same analysis offered a revealing picture of the industry and the competitive
positioning of iSoftStone. The opportunities are such that there is a current growth in the
outsourcing industry that will inevitably lead to a market consolidation in China and the shared
cultural base with Asia. The common threats that can impact iSoftStone are India‟s labor force,
the current government regulations regarding data security, and the ample number of small
firms offering the same services as iSoftStone.
May 6, 2010
3
2. COMPANY OVERVIEW
Mr. Tianwen (TW) Liu formed the company, iSoftStone, to answer the world's needs for
efficient and effective IT solutions, Business Process Outsourcing, and Software Product
Engineering Services. The funding for this initial venture came in large part from the revenue
and the good business standing of Mr. Liu‟s lucrative on-line office products supply business,
AsiaEC.com, which was later sold to Office Depot in 2006. Additional financing was secured in
the form of a 500,000RMB financial assistance package from the administrative committee of
the Zhongguancun Haidian Business Park where iSoftStone's corporate office resides. Under the
expert leadership and conservative business practices of Mr. Tianwen Liu, iSoftStone has
experienced sustained growth over its 9 years in existence and through reinvestment of earnings
it has been able to remain privately held and has a bright outlook for the future.
Founded in 2001, iSoftStone Information Service Corporation is a global
provider of business consulting, IT outsourcing, and business process outsourcing
services to clients in the United States, Europe, Japan, Korea, and China. Based in
Beijing with offices in key client geographies, iSoftStone provides a comprehensive end-
to-end service offering including on-shore client-facing business consulting, and off-
shore delivery of IT outsourcing and software product engineering services. iSoftStone
is a CMMI Level 5 company and has been certified with ISO9001 and
ISO2700(BS7799).
iSoftStone focuses on key client industries including financial services,
telecommunications, high technology, media, energy & utilities, and transportation &
logistics. The company has built software development centers and IT training centers in
many first tier and second tier cities in China, which have provided a large pool of
talented resources necessary for iSoftStones fast growth in all target markets. In
addition, iSoftStone is rapidly expanding into new business areas such as BPO
(Business Process Outsourcing) to help support its globalization strategy.
iSoftStone was honored to be one of the 2006, 2007 Top 25 of China Software
Outsourcing Corporations, one of the Deloitte 2006 and 2007 Technology Fast 50
China, a recipient of 2005, 2006 and 2007 Deloitte Technology Fast 500 Asia Pacific
May 6, 2010
4
Award, and ranked number 20 on Zero2IPO's 2006 China Venture 50. Consistently,
iSoftStone has been in the top 20 software export companies and has received the 2005,
2006, 2007, 2008 Contribution Award for Outsourcing from Ministry of Commerce of
China. iSoftStone was also named as Top 10 Employer in China for 2007, Top 10 China
Software Outsourcing Enterprises for 2008 in R&D Competitiveness, Top 25 of China
Software Outsourcing Corporations by China Import & Export Magazine for 2007 and
TOP 20 ITO Companies by China Sourcing for 2008.
iSoftStones investors include AsiaVest Partners, Fidelity Asia Ventures, InfoTech
Pacific Ventures, and Mitsui Ventures Global Fund.etc. (Source: iSoftStone home page).
3. BUSINESS STRATEGY
iSoftStone has a strengthened commitment to its Japan and Korea based clients, to
continue to help them meet their needs for business and technology while solidifying their
domestic presence and implementing a long term globalization strategy. They appointed Juro
Nakauchi, a former corporate advisor to the company, as Chairman of the Japan & Korea
Business Group to focus primarily on strategic business development and management. In 2008,
the company saw remarkable growth of more than 100% and sales of $100 million. Currently,
80% of the company‟s employees are located in China, mainly due to the lower costs however,
their expansion plans include incorporating another 15,000 employees and increasing revenues
to $500 million by 2011. In addition, they are anticipating that this growth will be a result of a
successful merger and acquisition strategy coupled with the continual growth of global
outsourcing needs.
While the outsourcing sector growth rate is 35% per year, iSoftStone plans to grow by
more than 50% per year and that higher than average growth will be attributed, in part, to the
company‟s planned mergers and acquisitions. Since acquiring US based Akona Consulting in
2008, iSoftStone has planned to expand its United States operations and grow into areas
including research, business strategy, and interactive design. In January 2010, iSoftStone closed
a round of financing led by Everbright Private Equity, a leading red-chip financial conglomerate
and shareholder of China Everbright Bank. Michael Wu, CFO of iSoftStone said in a press
release, this relationship along with capital secured from several other commercial banks, has
May 6, 2010
5
helped the company to secure a strong capital base to support their continued growth. “Our
strong capital base will be used to fund further growth, including working capital, delivery
platform expansion and potential strategic acquisitions” added Wu.
In addition, for the clients in the west, they have a very clear strategy that Mr. Li
recently described in a newspaper interview where he said the following:
“Foreign outsourcing clients do have some misgivings about China’s
outsourcing companies, mainly because they do not have a deep understanding of us. As
for our company, when dealing with overseas orders, normally we will appoint senior
customer managers or vice presidents at the front-end for customer services. As they all
have technical background, they can dispel the incomprehension that may occur among
customers when projects are transferred to us from the United States or the Europe.
Very often, we come to realize that the problems that may emerge are not technical, but
are caused by the differences of working environments and communication mechanisms.
By appointing quite a number of VP-level customer managers who have technical
background and who come from the customers’ working environments, we can succeed
in dispelling customers’ misgivings” (Intechno China. 2009)
4. SWOT ANALYSIS
The SWOT analysis provides an overall view of iSoftStone divided into four main
categories: strengths, weaknesses, opportunities, and threats (see matrix diagram). The
information presented is an assortment of public information regarding the company, the overall
industry, the Chinese economy, and its competitors. The following is an independent analysis
of the current position of iSoftStone and its probable future in the industry.
May 6, 2010
6
4.1 SWOT Matrix
FIGURE 1
4.2 Strengths
The competitive position of iSoftStone, moving forward was, best expressed in a
September 10, 2009 press release by Seth Pinegar, Head of Corporate Development at
iSoftStone and is captured below:
During the last ten years, CIOs of global Fortune 500 Multi-National Corporations
(“MNCs”) have made big bets using a single-country Indian offshore outsourcing solution, by
outsourcing to leading Indian vendors such as Infosys, Wipro and Genpact. A desire to leverage
the Indian cost advantage has caused many of those MNCs to develop a significant
concentration and increasingly uncomfortable dependence on India for offshore outsourcing
solutions. At the same time, labor rates and other costs in India have increased over time,
narrowing the cost “arbitrage” that MNCs have been able to take advantage of in using offshore
resources to help reduce costs to remain competitive in the global marketplace.
Strengths
•Cross Cultural Training
•Management Team
•Government Incentives
•Access to Financial Resources
Weaknesses
•Dependence of Markets
• Local Higher Education
•Cultural disparities with the West
Oportunities
•Growth in Outsourcing
•Cultural Similarities in Asia
•Market Consolidation
Threats
•India's Labor Force
•Market Fragmentation
•Goverment Regulation in Security
iSoftStone
May 6, 2010
7
In 2008, India as an outsourcing destination has lost “glow”, with the 2008 Mumbai
terrorist attacks reminding us all of the geo-political risks present in India and its neighbors.
Additionally, the $1bn(+) Satyam fraud reminds the world that while India has had a strong
track record for reliability in serving global clients, that its companies are not immune to fraud
and corruption that happens everywhere at the expense of us all. Lingering corporate
governance concerns have raised questions about the integrity of a number of India-based
providers‟ tightly-controlled Boards.
With the above factors, many global MNC clients are looking toward alternate
geographies to supplement India as offshore/near-shore outsourcing destinations – these include
Latin America, Eastern Europe, the Middle East and Asia Pacific (including mainland China).
Of the alternate locations available, China is increasingly developing the most favorable
combination of the following criteria: Abundance of skilled labor (e.g. college graduates and
vocational diploma candidates), highly geared toward hard sciences and technology (as is
typical in many Asian countries), and ability to serve English-speaking clients. Additionally, in
contrast to what many global MNC clients have experienced in India, China has a refreshingly
favorable business environment. Many MNCs are attracted to the „total package‟ China has
developed for nurturing its service-based economy, including:
There is a strong desire by government and population to continue the rapid “opening”
of China that has taken place in the last 20 years, which has resulted in generally business-
friendly attitudes adopted in dealing with the West. Furthermore, there is strong government
desire to promote new growth industries to replace manufacturing. The underlying stable
political environment, as demonstrated during the 2008 Olympics, provides further confidence
in China‟s long-term stability. Strong government support (tax incentives, land grants, training
subsidies, software parks to help companies be near peers and talent pools, government-backed
loans, client-facing government support, among others).
Outsourcing is an industry China can leverage – it is people-intensive, requires
education, and is a “green” industry –all of which help China to achieve its long-term objectives
for continued self-reliance and sustainable economic growth. This is supported by strong public
May 6, 2010
8
Infrastructure in tier-1/tier-2 cities which is more easily utilized than that in India, including
roads, educational facilities, telecom infrastructure and public utilities.
Another business feature that needs to be developed or enhanced is the Demonstrable
progress in IP and copyright protection. Contrary to Western perceptions of old, China has
adopted strict laws for enforcement of Intellectual Property (IP) infringement. At present China
has two major agencies dealing with IP protection – the National Copyright Administration of
the PRC (NCAC) and the State Intellectual Property Office of the PRC (SIPO). China has also
implemented a large body of legislation protecting IP, including "The Trademark Law of the
People„s Republic of China," the Paris Convention treaty, the "Copyright Protection Law", and
the "Anti-Unfair Competition Law".
Lastly, China has distinct advantages in serving domestic market outsourcing needs of
other Asian countries (especially Japan, which remains the world‟s 2nd largest economy), with
shared history and cultural ties. Asian markets such as Japan are under-penetrated in terms of
offshore outsourcing, and China is well-positioned to continue as a primary provider to them.
Important to consider for MNCs is also China‟s domestic market. Because China is also
a huge target market of the same MNCs who are clients of the global outsourcing industry,
these MNCs can use their business dealings with China-based outsourcing providers to illustrate
to the Chinese government that there exists a two-way relationship, rather than their simply
wanting to sell goods and services China‟s domestic market without buying from Chinese
companies in return. In 2008 the government announced a massive domestic stimulus, on top of
“healthy” 7%+ GDP growth rate this year (and higher expected for 2010) – this is expected to
benefit infrastructure investments and result in a “trickle down” effect on to technology/services
providers; this stimulus directly benefiting transportation & logistics industries. Furthermore,
there are rapid reforms taking place in technology intensive industries (telecom, banking,
energy and travel, among others). Chinese providers are at the forefront of helping to develop
this new technology, which can be leveraged in the same industries globally outside China, to
help link China‟s systems with those of the rest of world.
All of the above has helped to create a backdrop whereby Chinese outsourcing providers
are attracting world-class talent, which is helping to better equip them for serving global MNC
May 6, 2010
9
clients. This in turn is expected to further establish China as the #1 alternative to India for
global offshore outsourcing, and a leading outsourcing destination for years to come. This trend
has already taken hold, as evidenced by the numerous MNCs who have chosen to become the
“anchor clients” of China‟s emerging global offshore outsourcing industry.
4.3 Weaknesses
iSoftStone Holdings Limited recognized that if they were going to attain meaningful and
substantial penetration into the markets in Japan and Korea, they were going to need a
recognizable and respected presence. To fill this void, Mr. Liu recruited Mr. Juro Nakauchi,
previously a corporate advisor to iSoftStone, to assume the role of Chairman for the Japan &
Korea Business Group and will focus principally on strategic business development and
management. There is a risk that Mr. Nakauchi may leave the iSoftStone, caused by a
competitor company wooing him away from the company driven by the aggressive competition
in the market and the value that he would bring to any company looking to expand their market
presence in the Japan and Korean arenas. This could result in a lack of market presence
continuity in business development efforts. To mitigate this risk iSoftStone should look to build
confidence in their entire team and the plethora of talented employees, thus transferring the
relationship value that currently resides in Mr. Nakauchi to the greater iSoftStone company.
This will allow Mr. Nakauchi the freedom to leave the company as he wishes, without a
noticeable loss in company value or capability.
With iSoftStone‟s current plan of Growth by Acquisition, there is a risk that the new
merger and acquisition companies will continue to function at independent business units,
caused by a lack of standardized processes governing the integration of newly acquired business
units, resulting in additional inefficiencies, duplication of efforts, and missed opportunities. To
mitigate this risk iSoftStone should look to benchmark other companies that have successfully
executed the growth by acquisition model and then model their approach to match their business
and market. Many companies have realized decreased business performance as a result of the
confusion and distractions associated with dissimilar business processes and un-unified focus
and actions.
May 6, 2010
10
In 2007 it was estimated that 80% of all software developers in China had less than 5
years experience. This represents a perceived weakness in the eyes of iSoftStone‟s customers.
As this may be a hindrance whereby the company must be very selective in their staffing
selections, it may also be viewed as strength. Often the most creative ideas come from those
who are relatively new to a career area as their minds are not stuck in the ruts of the well
traveled roads, but rather are free to develop new, creative paths and solutions for customer
problems. There is, never the less, a risk that through Merger and Acquisition iSoftStone may
find itself inheriting a staff of thinly experienced engineers and developers. (Wheeler, J. 2009)
4.4 Opportunities
A recent study made by Supply Chain Digital1 has examined the outsourcing industry to
determine which worldwide outsourcing regions are the largest and most influential. Two of the
largest emerging markets for outsourcing are China and India, aided by the effects of the
worldwide recession. Citing a recent study from Gartner, the site says India and China are the
largest countries involved with offshore outsourcing and that sector is expecting a 35% growth
rate this year.
Outsourcing to China could be advantageous for companies looking to advance in the
21st century. The market research company Research and Markets recently announced a new
report entitled Manufacturing, Outsourcing and R&D in China, which emphasizes the shift
toward taking advantage of China‟s resources and development level. (Duncan, E. 2010)
iSoftStone, as a leader in the IT outsourcing industry, is planning to take advantage of
this opportunity by expanding their customer base in the western hemisphere. In doing so, they
are able to capitalize on having a healthy reputation that will facilitate the negotiations process.
Many offshore suppliers have a very diverse customer base and can handle various tasks. For
this reason, a certain size is helpful to offer a variety of solutions from a single source and
achieve economies of scale in each single process. Moreover, size supports the build-up of a
good reputation, is crucial in acquiring international customers, and increasingly to attract and
retain top talent. The opportunity for iSoftStone is represented in the increasing number of
global companies that are turning their eyes to China to find high quality, dependable
companies to take over their outsourced processes.
May 6, 2010
11
In comparison to the global IT outsourcing market leader India, China‟s customers come
from different countries than theirs. While Indian offshore service providers primarily supply to
the US and the UK, Chinese suppliers have chosen not to overlook the high concentration of
domestic customers in Japan and Korea. (Deutsche Bank Research. 2009)
According to the development plan1, sales for China‟s software and information service
industry in the domestic market will continue to grow at the rate of 30 percent or so during the
Eleventh Five-Year Period and break through RMB1 trillion Yuan, a great target, with the
exports amounting to over US$10 billion; a number of backbone software enterprises with a
respective annual sale of over RMB5 billion Yuan will come into being, and more famous
software brands will be cultivated; breakthroughs will be made on key products and core
technologies for domestic fundamental software, thus making it possible for China‟s capacity in
the research and development as well as services of software products and systems to basically
satisfy the requirements on the development of the national economy and the informatization of
the society. The regional differences in the main export markets are closely tied to cultural and
linguistic roots. India‟s colonial past is linked with the Anglo-Saxon countries and by contrast,
China‟s culture and philosophy have influenced Japan over the centuries. Roughly 2 million
Chinese speak Japanese and/or Korean. This cultural, linguistic, and geographic proximity of
the two regions favors trade relations.
Japanese companies spent over EUR 80bn on IT services and software in 2007, or
nearly 13% of the global total. Japan is thus a much smaller market than the US (EUR 250bn)
or the EU-25 (EUR 210bn) but nonetheless very important. Japanese companies are known for
being more reticent to outsource IT and relocate IT functions across borders. Currently, the US
purchases IT and IT-based services with a value of roughly EUR 14bn from India. This
accounts for approximately 17% of total spending on IT outsourcing. If Japan were to spend a
correspondingly high amount on IT outsourcing from China, the volume would come to roughly
EUR 2.7bn and a multiple of current revenues would exist but still it would equate to only a
fraction of Indian exports to the US.
1 Hu Hongjun, “Independent Innovation Boosts China’s Software Industry “, en.ce.cn April 9, 2010
May 6, 2010
12
China‟s off shoring market is still at an early stage of development and can be viewed as
a great opportunity for iSoftStone. In a mature market like India, the three largest suppliers
own a share of over 46% in IT based export revenues. They grow faster and are more profitable
than the smaller suppliers. Currently in China, the three largest offshore software developers
account for less than 15% in the total offshore market. The remaining share is accounted for by
a large number of smaller suppliers. Usually, a consolidation does not occur until the market
and customers have been able to choose the most successful suppliers. The opportunity now
exists for iSoftStone, with its aggressive merger and acquisition strategy; to position itself in
this highly fragmented supplier structure as reliable, high-quality service providers that are
capable of responding to current demand.
4.5 Threats
According to a study by Forrester, over the next 15 years, 3.3 million American services
industry jobs and $136 billion in wages will be headed for outsourcing countries. Difficult
economic times led by an unfavorable global economy make the outsourcing of information
technology (IT) a major area of concern for businesses around the globe. The onset of
globalization has dictated the need for new management models and business strategies and for
governments to adjust industry structure. Two countries stand at the forefront of the global
outsourcing movement: India, which is considered the leader in outsourcing IT services and
China, which is known for leading the outsourcing manufacturing sector. India made the
decision to focus on IT expertise early on; it also made developing competency in the English
language a nationwide priority, thus increasing its competitive advantage in the global
marketplace. India‟s economy has developed through the promotion of internal consumption
rather than on exports.(Gradizio Business Report, 2009) The country is strong in application
development and maintenance, remote infrastructure monitoring, and business process
outsourcing (BPO). India‟s labor force is one of the biggest threats to China‟s development of
its IT outsourcing industry. One of the main reasons that outsourcers in the U.S. rely on Indian
outsource providers is the maturity and stability of its outsourcing market and advanced telecom
infrastructure. According to Liu, “India is another big country successfully doing IT outsourcing
and business process outsourcing, and we still have a distance to catch up with them.” “They
May 6, 2010
13
have larger scale and richer international experience in the industry, something we need to
improve.” (China Daily, 2009)
Data security and threats like cyber attacks remain a serious issue that companies from
China, looking to gain ground in the IT outsourcing movement, must focus on improving in an
effort to increase global market share. This is forcing businesses to ensure that corporate
security policies are specific, comprehensive, and access control systems thorough and up-to-
date in order to guarantee on-going security monitoring when working internationally with
China. This type of threat is causing companies to focus on quality by investing in developing
good governance models and best practices for knowledge transfer. The government and
Chinese companies like iSoftStone are working hard to thwart off the notion that offshoring IT
work to China does not automatically equate to cost reduction. Even though the Chinese
government has invested more than $5.4 billion in English education at Universities, India
continues to lead the world in this area. India has over 2,100,000 English speaking graduates
added annually and 460,000 of them are IT grads. (Call Center India, 2010)
Market fragmentation is yet another threat facing IT outsourcing providers in China. The
Chinese IT industry is fragmented and needs to consolidate to attract major players, worldwide.
The Chinese IT industry is divided into several smaller software companies. In order to have
international appeal, the main challenge is for them to merge as a single, solid and reliable
partner. This is something that iSoftStone has recognized as a drawback and has since planned
major mergers and acquisitions in an effort to increase in size and presence.
Red tape and stringent government regulations is a serious limitation for China‟s IT
outsourcing providers. The software industry in China needs transformation in the
organizational and operational structure to ensure security of the intellectual property of clients.
In order to have a bigger piece of the global pie, the Chinese government has to work towards
eliminating software copyright piracy, which is one of the biggest threats to the growth and
development of China‟s IT outsourcing industry. According to joint research conducted by the
Ministry of Information Industry (MII) and the CCW research center, the legal environment of
China‟s software IPR has shown significant improvement. However, piracy remains rampant in
the nation. In 2007, the number of firms using copyrighted software increased by 53.0%. As a
May 6, 2010
14
result, in an effort to curb the problem, the Chinese government ordered municipal authorities to
purchase computers that have pre-installed licensed software. This was done in an effort to
show the Chinese governments‟ attempts to address the issue.
To many foreign companies, China remains attractive as the world's largest potential
market for outsourcing products and services. As such products rely heavily on the protection of
intellectual property rights, it is essential for foreign companies to adopt a combination of IP
protection methods to formulate a strategy for their products in China. To this end, China has
established a relatively comprehensive legal system in relation to IPR protection where
intellectual assets are protected by way of patents, trademarks, copyrights, and trade secrets.
According to the Embassy Of The United States Beijing, China, since joining the World
Trade Organization, China has strengthened its legal framework and amended its IPR laws and
regulations to comply with the WTO Agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS). Despite stronger statutory protection, China continues to be a haven
for counterfeiters and pirates. According to one copyright industry association, the piracy rate
remains one of the highest in the world (over 90 percent) and U.S. companies lose over one
billion dollars in legitimate business each year to piracy. On average, 20 percent of all consumer
products in the Chinese market are counterfeit. If a product sells, it is likely to be illegally
duplicated. U.S. companies are not alone, as pirates and counterfeiters target both foreign and
domestic companies. (Embassy Of The United States Beijing, China, 2010) This kind of
reputation is a threat to any company seeking to increase its market presence and expand
globally.
5. CONCLUSION
After careful analysis and consideration, it is evident that iSoftStone is in a
unique position to lead the IT Outsourcing Industry in China. The company possesses a
strong and viable globalization strategy with sound financial backing. With its
substantial labor supply and domestic market commitment, iSoftStone is emerging as a
foremost competitor in the global technology services industry. Their global delivery
model is based on an execution framework process that is used to approach each new
project with the goal of ensuring one thing, successful outcomes.
May 6, 2010
15
5.1 Execution Framework Model
FIGURE 2
Questions
1. What is the company doing, or planning to do, in order to compete with MNC‟s that
want to offer their services to the local companies and governmental agencies in China?
2. How has the company adapted to the new regulation changes regarding infrastructure
security? How have those regulations affected the global reputation that China has
earned surrounding IPR (Intellectual Property Rights)?
3. How does iSoftStone view their competitive position? By maintaining an 80%workforce
in China, does the company intend to compete on price or capability based on the
development operations with the Carnegie Institute?
1 DISCOVER
2 DESIGN
3 DEVELOP
4 DELIVER
5 ANALYZE
May 6, 2010
16
6. REFERENCES
Call Center India 2010. Why China Will Never Beat India in the BPO Space,
http://www.callcentersindia.com/displaynews.php?idnews=56
Chen and WanLi, 2009. Synergy and Policy Key to iSoftStone Success
http://www.chinadaily.com.cn/china/2009summerdavos/2009-09/11/content_8682071.htm,
September 11
Deutsche Bank Research. 2009. Offshoring to China, From Workbench to Back Office
http://www.dbresearch.com/PROD/DBR_INTERNET_EN-
PROD/PROD0000000000236071.pdf, January 13
Duncan, E. 2010. Outsourcing hubs: China, India, Eastern Europe
http://www.supplychaindigital.com/industry-focus/outsource/outsourcing-hubs-china-india-
eastern-europe, April 30
Intechno China. 2009. Three Engines for the Growing of Outsourcing Enterprises in Size and
Strength & the Promotion of Delivery. http://intechnochina.com/blog/archives/170, December 4
Kathawala, PHD and Heeren 2009. IT Outsourcing: China‟s Grasp for the Lead
http://gbr.pepperdine.edu/093/itoutsourcing.html
iSoftStone, 2010. iSoftStone Corporate Site, retrieved on May 1, 2009 from
http://www.isoftstone.com/en/corporate/whoweare.htm
Pinegar, S. 2009. Why China? http://en.chinasourcing.org.cn/content2.jsp?id=2561, September
10
US Department of Commerce International Trade Administration, 2005. IPR Toolkit
http://beijing.usembassy-china.org.cn/protecting_ipr.html
Wheeler, J. 2009. The Dao of Outsourcing: Overcoming the Software Developer Experience
Gap in China http://www.daoofoutsourcing.com/software-developer-experience-in-china/,
January
Zhang, J. 2009. SPECIAL REPORT: Outsourcing to China, Part 1,
http://www.sourcingmag.com/content/c050802a.asp
