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ENTRYFORPROFITTRANS-COSMOSINC.CHINAENTRYSTRATEGYPRESENTATIONAGENDACHINAISBECOMINGAHIGHLYDYNAMICCCMARKETCCOURSOURCERSAREEMERGINGBUTSTILLEXPLORING(I)Currently,onlylow-price/standardservicevendorsareprofitableUtilization,andtherefore,long-termcustomers,isthekeyforprofitabilityHowever,high-pricedoutsourcingsolutionsnotwidelyacceptedbythemarketButinthelong-run,webelievehigh-endserviceswillbevaluedbycustomersWeareencouragedbyrecentpositivenewsonclients’long-termcommitmentstohigh-endoutsourcersWithChina’spendingWTOEntryandcontinuedeconomicgrowth,webelieveit’sthedirectionHigh-endoutsourcerscanwinthegamebyaggressivelyestablishinglong-termclientbase,andtargetingvariousoutsourcingopportunitiesalongthevaluechainFivesuccessfulstrategiesidentifiedfornewcustomerdevelopmentTelemarketingandvalue-addedinformationservicemostlikelytobeoutsourcedTCISHOULDPARTNERWITHRIGHTLOCALCCOUTSOURCERSEC:ONLYSOFTWAREFIRMSANDSIsWORTHPURSUINGTCI-TJ:RSTRUCTURINGANDBUILDINGSTRATEGICALLIANCESCCMERELYABUSINESSPRACTICEBEFORE1997HighertelecompenetrationCCINDUSTRYWILLREACH330-370KSEATSIN2010TOP-DOWNAPPROACHREVEALSAPROMISINGENDGAMEREDUCINGTELECOMCHARGESWILLBOOSTFIXED-LINEADOPTIONTELECOMISTHEMOSTSIGNIFICANTCCUSERNOWBottom-upAnalysisEXPERTOPINIONSREVEALAMARKETOF145,000IN2004CHINACCUSERBASEVERYDIFFERENTFROMU.S.THREECRITERIATODISTINGUISHCOREANDNON-COREAREAADMIN-DRIVENSEGMENT:MOSTIMPORTANTFORNOWHOWEVERDEMANDEXPECTEDTOFLUCTUATEINTHEFUTUREUNIQUETHREE-TIERDECISIONMAKINGPROCESSSystemIntegratorsShouldPutEffortstoAllOUTSOURCINGALMOSTNEVERANOPTIONFORADMIN-DRIVENCOMPANIESSERVICE-ORIENTEDSEGMENT:ADRIVERFORLONG-TERMCCPENETRATIONMOREINDUSTRIESARELIKELYTOADOPTCCOVERTIMECOMPANIESQUITESELECTIVEONCCUSAGEVERYCAUTIONSONCCOUTSOURCINGGENERICSERVICE:AGENERALLYDECLININGSEGMENTConsistsMainlyofPagingServicesGENERICCCUSERSHAVESTRONGINCENTIVESTOOUTSOURCEAGENDAFOURDISTINCTIVETRAITSFORCHINA’SCCOUTSOURCERSTraitsforAnEmergingSegmentDEMANDPROJECTIONDEPENDENTONACYCLEOFFACTORSPOSITIVECUSTOMEREVOLUTIONOBSERVEDINCHINA’SOUTSOURCINGBUSINESS
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