Haitao Qi, the CEO of Devott Made a Speech on “The Service Outsourcing Development Trend” in the Lecture of Tianjin Service Outsourcing Association
Source: Chnsourcing.com.cn View: 238 Date: 2015-08-04

Currently, each industry in national economy in China is under adjusting; Tianjin is also in the processing of adjustment. The whole environment of outsourcing industry in Tianjin is not positive; although the business models of outsourcing enterprises have big problems, most of them still keep current situation to provide services of “selling people” and “we will do what you want us to do”. After the publishing of the No. 67 document, each department is promoting and following the policy. However, the implementation will need a long time to do, the trend of outsourcing industry will not have the second round of big stimulation and development from policies in short time; therefore, the current outsourcing polices will be continued.

In my opinions, intelligence will be the first one of core subjects in the next 10 years and it is also an important view recently promoted by Devott. Outsourcing industry is based on IT; and ten-year is a big period for IT industry. The mobile era of 2014-2015 is basically ended; the development directions are intelligence, the 4.0 industry and hardware revolution. The first one of outsourcing industries greatest lashed is call center, because that cloud computing system firstly replaced of programmers. Currently, the intelligent program developed by USA can settle a matter at one goes that means the recognition rate of many data processing has reached 90% or more. Both industrial and civilian recognition rate are very high, but outsourcing enterprises in China still keep original business models. What will programmers use in the future? Outsourcing enterprises are facing a great challenge. Under the trend of “big cloud” service, the model of outsourcing industry should be changed as soon as possible and it must be changed.

In the next 5 years, the greatest opportunity for outsourcing industry is “the Three Roads” published by government: “One Road One Belt”, "Internet +” and “Double-Chuang (Public Entrepreneurship and People’s Innovation, the same below)”.

The Biggest Opportunity of “One Road & One Belt” is offshore

Although service outsourcing industries in the near areas of “One Road & One Belt” have been outdated, after the policies provided by government, they will have very big potential to improve. For example, recently, we have opportunity to touch with Outsourcing Association in Russia and find that Russia has many heavy industries then also have great outsourcing demands; although the growth rate of IT is very high, the development level of IT industry is general. The current IT technology level and ability in China have been beyond other countries in “One Road and One Belt” including Russia and the Middle East. In the entrepreneurship street, we can find that Korea begins entrepreneurship projects for three-five months then hatch those projects in China; however hatching project is not a new thing for us a few years ago. Therefore, we must firstly understand our enterprises’ solutions; then we can better match and sale.

"Internet +” Has Two Big Categories: One is “Internet +”, the other is “+ Internet”

The meaning of “+ internet” is traditional industry + information. Currently, our many industries are “+ information” such as printing industry plus information and e-commerce & operation then accomplishes internet selling. Therefore, we should change current business model of outsourcing enterprises, should change from taking service fee (service fee for a single order) to divided profit that is the mainstream. For example, if some outsourcing enterprises provide systems for companies then gain divided profit, the income will far away from traditional consulting fee for a single order in the past. Our outsourcing enterprises must have to actively match customers. In the past our outsourcing enterprises might most promote our technologies for outside; currently, we not only have technology, but also have service that is also a product and can be sold on platform. Therefore, the current opportunity is how to help traditional industries to “+ internet”. Commerce & Trade, E-Commerce, Finance, Education and Medical are the first five industries of current 2300 traditional industries those have been “+ information”, the manufacturing is at very low level. The key element need research is that what core advantages our own enterprises have; research each industry of China then provide a new solution with base salary + commission for operation that means basic service fee will plus divided fee of operation further. Since 2015, in this aspect of practice, Devott has gained businesses with relative higher profit and accomplished value-added goal.

"Double-Chuang” is a good opportunity for outsourcing enterprises’ development

From the angle of “Double-Chuang”, we can use ability to change equity. There are two concepts: one is directional hatching, the other one is service investment bank. For example, if one enterprise engages with online education, it will focus on innovative project of education and training. If have good projects, the spare ability of enterprise can be used asset investment. Using my development ability can help enterprises to do some part you need and make them continually update. For entrepreneurship of students, we also can use ability and resources to help them or directly share the entrepreneurship opportunity.

The next ten-year will be intelligent era and also an equity era

Intelligence has been introduced above, but equity-the individual wealth growth has become NEW OTCBB + GEM and innovation board. However how to change equity? Everyone hopes to be angel, although we have not enough money, we can use resources to be cash via our thought then to help enterprises to accomplish entrepreneurship and finish resources crowd-funding. Devott is practicing that in big resource pool, there are some big e-commerce. We can help them to promote fully using each person’s resources. For example, we can recommend professors who enterprises need then take market fee after successful recommendation, which have been finished many times on our platform. Resource crowd-funding is another way of canvassing business orders that is resource investment; it may be said as private VC meeting or partner at the highest level. For instance, some enterprises also have disadvantages when do projects. Enterprises not only lack of money, they sometimes lack of resources. At that time, we should provide resources they need via service then help them succeed. Therefore, resource also can be crowd-funded. From angle of enterprises, we do or help enterprises to do or suggest enterprises incubators to do, all of them are useful for companies they really need.

Devott can find the opportunities from intelligence and “double-chuang”. Last year, we finished some crowd-funding in intelligent hardware vertical community, vertical e-commerce areas; which has gained preliminary results. In a word, the integration of traditional industry and internet has big development space. I hope the association will integrate resources from each enterprise then accomplish resource crowd-funding.

Devott Publications
The Selection of the TOP Global Outsourcing Destinations – China TOP 15 (TGOD China TOP 15) Ended and Its Rankings and Research Reports are Now Available Worldwide