Perspectives and Potential of Asia’s Hotspots – China and Philippines in Focus

Global IT spend is expected to increase at a faster rate post 2009 as several service buyer markets unentangle themselves from recession. Growth may still be tepid but nonetheless more significant than the previous 3 years.

Post recession clients are more aligned towards offshore benefits.

Drivers for Technology Spend:

• Cost reduction as clients look for demand recovery
• Growth in competition leading to need for scalable, optimized and effective operations
• Diversification of business and expansion into new markets is pushing clients for innovation and faster time to market
• Growing SMB participation as service buyer (currently at 33% of total spend) globally

How suppliers can exploit growth in IT spend?

There remain opportunities for outsourcers, as offshoring spend remains relatively small

• Identification of new delivery and engagement models
• Overhauling of existing resources/ network to offer higher value
• Foster innovation/ IP/ assets- must for gaining edge over competition
• Develop ready to deploy platforms / frameworks for multiple geographies in order to enable faster time to market

The demand side is still composed of two regions of the globe- North America and Western Europe, which together contribute about 55% of global IT/ BPO spend. Offshore revenue share is 75%. But domestic markets from BRIC nations will also become increasingly important players in the near term.

The supply side will stretch across geographies and begin accelerating the pace of competition. Countries in S. America such as Argentina, Chile, Colombia, Uruguay, etc. are some which will be vying to supply clients, particularly the Hispanic population in US.

The incumbent Indian providers will continue to build delivery centers in key delivery regions such as Latin America, Eastern Europe and China.

Game changing strategies on supply side:

• Vendors positioning themselves as End to End service providers rather than cost saviors to increase wallet share

• Increased vendor consolidation and diversification (eg. Dell acquired Perot Systems, Product vendors expanding services portfolio etc)

• Building capabilities around RIM/ IO* and platform based BPO services (Service lines witnessing traction from client side)

• Vendors entering new regions to support existing client’s localization needs (deepens client reach and wallet share)

Strong Domestic and Regional Markets –

There is strong market potential in Asia Pacific region as evidenced by robust growth rates of regional domestic economies. Apart from India and China, smaller countries like Philippines and Vietnam, which are seen as supply side components, have strong domestic consumption potential, as evidenced by their strong growth rates on the back of increased domestic consumption.

• Healthy growth in IT spend provides tremendous scale for growth in these markets
• Current outsourced market for the region is over US$22 billion – primarily served by local & regional vendors
• Technology spend by government, BFSI, telecommunication and manufacturing will drive the growth
• International and regional vendors serving these markets have witnessed double digit growth

Service Delivery Cluster-

In the past 10 years, the service delivery cluster in Asia (earlier composed primarily of India, Sri Lanka and Philippines) has evolved to a circle of multiple nations providing a multitude of services and catering to a diverse group of markets and verticals.

For this cluster to further expand, and further clusters will emerge across the globe. Each service cluster will develop its own niche and market development segment. These clusters will lead to growth of the region as a whole.

Top Cities in Asia

Continuous demand has led to proliferation of outsourcing locations in Asia.

• Indian cities continue to lead the pack, followed by Philippines and China catering to both global and domestic requirements. Many, particularly in China are looking at catering to the domestic market instead of the global requirements.

• Manila NCR, after Indian cities like Bangalore and Delhi, has been consistently making it to the top of the outsourcing cities lists.

• China follows India in terms of most number of cities on the lists. Dalian has been consistently moving up rankings.

• Several cities moving down the rankings are also an indication of strong competition among the cities. This also indicates the aggressiveness of cities in promoting themselves as locations of choice.

• Most of the emerging Tier II/III cities are from Southeast Asia- from Philippines, Indonesia, Thailand and Malaysia. This could be mostly due to initiatives undertaken like by the Business Processing Association of Philippines (BPAC)

The Best Business Lounges Around Asia

Long flight. No sleep. You’ve spent almost 20 hours in the air and now you’ve got five hours to kill in this airport 5,000 miles away from home. You don’t know anyone for thousands of miles; everyone you see is a complete stranger. You’re alone. So very, very alone. What you need is a good drink.

It’s a fact that Asia has more business travelers per capita than any other continent on the planet. The business world has its pivotal hub in the Asia Pacific region, with Hong Kong, Singapore, and Tokyo only playing parts in the area’s distinct economic influence on the world. Therefore, the airports around Asia reflect the deep regard and respect each Asian country has for the men and women making their economies grow.

Having a good business lounge to reward today’s Business Warrior on their long travels is just another way of brightening a day fraught with temperamental children and rough turbulence. Walking through the doors of a lounge designed specifically with you in mind is like being hugged by mom.

There are lounges designed strictly for VIPs and business people, while others cater to all passengers. If you are a business traveler and you just got off a flight that included a family of five loud tourists, it would be wise to avoid going to the lounge they just stepped into. Try the one that specifically caters to you.

There are things that any lounge will have, regardless of whom gets in. They will usually have:

o Drinks
o Snacks
o Television and internet
o Comfortable seating

There are some, however, that fly just above the rainbow. Here are the select few lounges in Asia that offer exemplary class and service.

o Hong Kong International Airport (Hong Kong)

Cathay Pacific’s Wing Lounge in the Hong Kong International Airport not only caters to any specific taste, they pride themselves on improving on even the most minute of details. They offer first-class travelers private cabanas, private showers, and chaise lounges.

o Suvarnabhumi International Airport (Bangkok)

Thai Airway’s Royal Orchid Lounge not only offers the best in travel, but their layover accommodations go beyond the normal rules of class. You feel stressed? Get a Thai massage or take a hot shower. If you need to have a last second meeting, meeting rooms are right there. Also, should you need transportation anywhere, Royal Orchid has a fleet of Mercedes-Benzes at your beckon call should you need to go anywhere.

o Chengi Airport (Singapore)

This airport features almost unanimously lauded lounges. Whether you need to nap, shower, or visit the spa, they have you covered. And if you have a lot of time to kill, you can go on a Singapore Tour. Yes. For a 5-hour or longer layover you can take one of four tours around the city and make it back well before you flight.
If you don’t want to leave the airport, you can walk around in one if it’s six gardens. That’s right. And airport with six gardens. What more could you want?

o Dubai International Airport (Dubai)

Dubai is almost defined by the decadent hotels there that cater to the world’s nobility. Movie stars, world leaders, and rich heiresses have all stayed a night or two in the gold-plated, marble-floored castles for the elite. So why stop there?
The Dubai International Airport took the luxury of a 5-star hotel and transposed it into their lounges. With restaurants that feature a dining experience unparalleled in air travel, it is clear to see why people clamor to be stuck in Dubai. They offer spas, Jacuzzis, a full gym and swimming poor to all first-class passengers.

o Incheon International Airport (Seoul)

Asian airports are known to pamper their travelers. Like the airport in Singapore, Incheon offers travelers with selected layovers tours of Seoul. They went one up on them, however. The VIP lounges are catered specifically to first-class flyers. Also, for the past two years straight the lounges in Incheon International Airport have been given the Global Traveler award for the best in the world.

In a time when simply being good was never so hard, these airports looked great, seemingly without effort. Naturally, you would be just as tired of flying in a VIP lounge as you would in the terminal. But there a lot to be said about hating to fly in style, as opposed to despising it on a plastic chair in front of Gate 24. If the adage, “you get what you pay for” is true, then these lounges are worth millions.

Vacations – Spend Your Lovely Time in Different Parts of Asia

Yet another exciting spot to spend your vacations and have the luxurious moments of your life cherished with your family, is Asia. There are so many different moving regions in Asia that will make you fly with beauty of these parts of earth. There is so much in Asia that your one life is not enough to have this absorbed and to sense all. Asia is the biggest continent in regard to population, area, culture and many more. The worlds highest and the lowest points are in Asia. The rich culture, historical areas and architecture is perpetual. In Asia you can see world wonders, shopping malls, beaches, mountain-ranges and many other beauties.

There are so many important countries in Asia, worth traveling. It will be memorable time to spend the luxurious moments with family. Asia is comparatively inexpensive and traveling is in budget, also world’s most luxurious hotels can be found.

Vacations in china will prove incredible. China has a variety of travel destinations. There is culture, additional history and wonders to relish. The barren highlands of Tibet via the Silk Road, the bewildering Forbidden City at Beijing and the magnificent Great Wall of China. There are the thousands of remarkable Terracotta Warriors and Horses at the tomb of Qin Shi’huang in Xi’an, the intriguing city life of (Shanghai). The spectacular picturesque beauty of Yunnan and Asia’s original world city, Hong Kong. There are many inexpensive hotels but there are also extravagant hotels, restaurants and resorts for every one.

Thailand can make the vacations most memorable via its culture. More people visit Thailand more than any other country in Southeast Asia. The Royal Kingdom of Thailand has the most to offer tourists: historic culture, lively arts, beautiful beaches, a good nightlife, welcoming and generous people and one of the world’s best cuisines. There is huge accommodation for visitors, visiting ever welcoming Thailand.

It is interesting to know that the Indonesia is made up of more than 13,000 islands of which less than 1,500 have a name. Indonesia is the world’s fourth most populous country and the largest Muslim state. Indonesia always welcomes visitors to spend their lovely vacations.

Vacations in Japan have long been popular with travelers though it’s an expensive place to live but a traveler can always spend budget vacations in Japan. Japan provides an extraordinary luxury living experience.

Philippine is famous as “The Smile of Asia” because of its people’s hospitality and many festivities. It will be a memorable part to go and enjoy vacations.

Emirates Arab vacation apartments all year-long, give huge accommodation in hotels, beautiful vacation homes and vacation home rentals.

There are so many other countries like India, Pakistan, Nepal, Afghanistan and Malaysia which got beautiful attractions to hold travelers and visitors to spend their vacations. All have their own beauty and history for travelers to enjoy.