Tuesday, June 01, 2004

Ahoy, APEC ...

China Sourcing Alert    
Tuesday, June 1, 2004
Dateline: Qingdao, Shandong, China
Ahoy, APEC ...
I will be speaking at this week's APEC meeting.  Here a several take-aways (pretty much in the order that they will be presented; I'm covering the key points in only the first 10 out of 50 slides):
* The billables for sub-contract work done for U.S. systems integrators (SIs) are 3x the rate for prime contract work done for domestic firms (i.e., clients in China) and 2x the rate for sub-contract work done for Japanese SIs.
* U.S. CIOs pick China as their preferred place for IT (information technology) outsourcing (a.k.a., "ITO") after the States and India.
* The top need is for application development for specific applications (a.k.a., "apps").  The best match is for apps requiring Java development.
* China's SIs should build upon their experience with Java, XML and UML.  Think a J2ME >> J2EE strategy.  And think software, NOT systems.
* Strategically, a core competency in business intelligence (BI) represents the best foundation for developing the enterprise apps space; tactically, VoIP offers the best near(er)-term opportunities, primarily because it is both an enterprise AND an embedded apps play.
And there are many, many other relevant points.  A copy of my presentation will be uploaded to the members-only "Files" section at http://tinyurl.com/2r3pa next week.  A related press release in Chinese and English, with a couple of pithy quotes, in also accessible in the "Files" section.
David Scott Lewis
President & Principal Analyst
IT E-Strategies, Inc.
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