installed talent in tier 2 china cities - suzhou chengdu pptx

7/28/2019 Installed Talent in Tier 2 China Cities - Suzhou Chengdu Pptx

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Installed Talent in Tier II China Cities Suzhou

& Chengdu

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3

Talent Neuron can help in selecting the right location by providing data, analytics and insights on Locations,

Talent, Cost, Peer Group Footprint & Trends

Location Analysis Understand the capability of each potential

location and make data driven decisions on

setup and expansion

Peer and Talent

Insights

Understand the capability of each potential


setup and expansion

Ecosystem Analysis Understand the capability of each potential


setup and expansion

Source: Talent Neuron Website 3


4/17

CAPABILITIESTalent Neuron has assisted over 100 companies in their global location analysis and site

selection process

Ecosystem Insights Forecasts Industry/DomainWage Inflation

Trends

Company TrackerMarket TrackerSkill Wizard Market Insights

Talent Neuron KEY

FOCUS IS ON THE

TECHNOLOGY INDUSTRY.

OVER 80% CLIENTS AREIN THE PRODUCT

ENGINEERING DOMAIN.

Consulting

Proprietary

Data Sources

Network

Reports

Web Crawling

Expert

Insights

Analytics

Surveys

500+ GLOBAL

CITIES COVERED

Source: Talent Neuron

6 DOMAINS

35 FUNCTIONs

150+ SKILL SETS

4


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PROPOSED APPROACH Data Gathering and Analysis through BIG DataTalent Neuron will use data driven Big data principles (for large data analysis) which will provide

comprehensive insights and transparency on the trends, current realities and opportunities in any locations

100+ Job sites

3,000+ Company

Career Sites

Universities

Social Media/

Public Profiles

Hadoop

Engine

(Big Data

Approach)

=

Over 12,000

Unique Data

elements foreach city

Patent Databases

Publication/

Journal

Databases

Technology

Contributor lists

Community Sites

Connectors (API / Screen Scraping)

SkillAvailability

LocationInsights

Compensationand CostTrends

PeerCompanyFootprint

Source: Talent Neuron Website

* Details not disclosed by the company

Source: Talent Neuron Research and Analysis 5


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520+ Cities~12,000 Unique Data

Points Per City

9 Domains &

400+ Skills

~7,500 Companies &

22 Million Profiles

Module 1: TalentIntelligence Module 2: TalentAnalytics

Location Profiles

Talent Pool (Installed and Fresh)

Salary and Cost

University Peer Companies

Monitor

Role Views

Job Engine

Top Brains

Public People Profiles

HR Data Consolidation

Peer Benchmarking

Decision Support Analytics

Workforce Planning

Skill Circles

Hypotheses Validation

6

Talent NeuronTalent Neuron has two module Talent Intelligence and Talent Analytics. Our data spectrum covers

500 cities, 9 Domains and 400+ skill sets


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Talent Neuron, gathers data from multiple sources

Data Mining from Connectors

Job Sites

Company

Career Sites

Social Media/

Public Profiles

PatentDatabases

Community

Sites

Technology

Contributor List

Universities

Publication/

Journal

Databases

Survey Data from

Companies

Data from Govt./

Industry Bodies

Data from Local

Recruitment

Companies

Data on City level

suitability &Ecosystem

Correlated data

on Talent,

Cost, Peer companies

Talent Neuron PrimaryResearch & Interviews

News Articles & Public

Data Crawling Engine

7


8/17Zinnov 8

CHENGDU

Chengdu is Chinas fifth most populous city and provincial

capital of Sichuan Province.

According to the World Bank's 2007 survey report,

Chengdu was declared "a benchmark city for investment

environment in inland China"

Currently, it is the top investment location in inland China

due to a large graduate population, low operating costs,

most livable city reputation (western China), and

governments efficiency in dealing with foreign investments

China's state council has designated Chengdu as thecountry's western center of logistics, commerce, finance,

science and technology, transportation

and communication SUZHOU

Suzhou has second largest economy in the Yangtze River

Delta after Shanghai. It contributes 2.3% to countrys GDP

As one of the Satellite cities of Shanghai, its infrastructure

is as good as any other Tier I city

With stable society, convenient transportation, beautiful

environment, efficient government and considerate

service, Suzhou is most suitable to make an investment

Suzhou was ranked 5th on the Forbes list of Best Cities for

Business in Mainland China in 2010

Suzhou is considered as one of the worlds top

manufacturing location of laptops and digital cameras

Parameters Chengdu Suzhou

City Population(2011) 7,123,697 6,376,600

MSA* Population 14,040,000 11,800,000

Area 12,132 sq. km 8,488 sq. km

Official Language Mandarin Mandarin

Literacy Rate 93.7% 93%

Unemployment Rate 3% 4.3%

Population Growth Rate 0.48% 2.44%

Legally EmployablePopulation

11,230,000 8,662,000

Key IndustriesPharmaceuticals,ICT, Automotive,

Aerospace

ICT, Electronics,Textiles, Chemical,Mech. components

Chengdu

Suzhou

Note: *MSA Metropolitan Statistical Area

Source: Doing Business in Chengdu; Invest in Chengdu government website; Government of Chengdu. 2011-05-13. Retrieved 2012-03-16;

Government of Suzhou. 2011-03-18.Retrieved 2012-03-18 Doin business in Suzhou

LOCATION ATTRIBUTES: CITY OVERVIEWChengdu is the scientific and business hub of south west China; Suzhou is one of the most

important industrial centers in the Yangtze River Delta economic development zone

8


9/17Zinnov 9

LOCATION ATTRIBUTES: CITY OVERVIEWSuzhou is amongst the eleven cities in China with GDP per capita of more than US $10,000

$82

$143

$0

$40

$80

$120

$160

GDP

USDB

illion

Chengdu Suzhou

$7,200

$12,211

$0

$5,000

$10,000

$15,000

GDP Per Capita

USD

Chengdu Suzhou

GDP Per Capita, 2010

Foreign Direct Investments, 2010

4.8

8.3

$0

$2

$4

$6

$8$10

FDI

FDIinUSDB

illion

Chengdu Suzhou

GDP, 2010

12%

40%

48%

Primary

Secondary

Tertiary

(Service)

Industry, 2010

2%

57%

41%

Chengdu Suzhou

Suzhou was one of the first Chinese

cities to cross the US $10,000 GDP per

capita level in 2007 Chengdus GDP per capita has been

increasing steadily from US $2,300 in

2001 to US $7,200 in 2010. GDP of

Chengdu showed a growth of 15% in

2010

Suzhous economy boomed in the past twenty years. In year 2007, its utilized foreigncapital reached US $7.38 billion, the highest in the country. In 2010, Suzhou attracted

an FDI of US $8.3 billion, with 92% utilization rate

Chengdus FDI is second in Western China, there has been a growing number of high-

tech, software and hardware firms establishing themselves in Chengdu. Foreign direct

investment showed a steep increase of 73.6% in year 2010

Primary industry refers to agriculture, forestry, animal husbandry, fishery Secondary industry refers to mining, manufacturing, electricity, water, gas

production

In Suzhou, services industry makes up 38% of the total industries, in

comparison with Shanghai and Beijing, where services industry make up

to 57% and 75% respectively

Chengdus service sector already accounts for 48% of the economy and is

predicted to grow to 60% within the next 10 years

Note:

Source: Doing Business in Chengdu; Invest in Chengdu government website; Government of Chengdu. 2011-05-13. Retrieved 2012-03-16;

Government of Suzhou. 2011-03-18. Retrieved 2012-03-18 Doin business in Suzhou Suzhou Statistical Re ort 20119


10/17Zinnov 10

156,000

48,000

44,000

25,500

13,500

7,500

18,500

6,000

IT Services R&D

Chengdu

Software PD*

Suzhou

Installed

TalentPool

Hardware PD*

Software PD*

Hardware PD*

Total Installed Talent Pool, 2011

Note: * PD Product Development

Source: Government of Chen du official website Invest in Chen du Suzhou Statistical Yearbook 2011 Invest in Suzhou Primar Interviews with various Stakeholders in China

Chengdu is more R&D oriented compared to other Tier - II cities

Suzhou is a kind of satellite city around Shanghai, it is more of a traditional manufacturing hub and can be developed into a Global

Delivery Center.

Not many MNCs are present in Online Search Engines/Internet sector, so hiring has to be done majorly through the local companies

In general, the Chinese R&D talent is skilled in Internet/mobile technology. Lack of discipline in structured code writing may be an

issue

INSTALLED TALENT POOL: R&D TALENT POOL SPLITSoftware product development forms around 45 percent of the total R&D talent pool for both

Chengdu and Suzhou

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11/17Zinnov 11

60%40%

Engineering Gender Diversity

92%

84%

80%

60%

8%

16%

20%

40%

0% 50% 100%

Over 10

Years

6 to 10

Years

3 to 6 Years

0 to 3 Year

Male Female

65%35%

Male Female

Overall Gender Diversity Ratio (Male/Female)

Chengdu

Suzhou

Note:Source: Invest in Chen du Suzhou Statistical Yearbook 2011 Talent Neuron Pool Modeler 2009 2010 2011 Primar Interviews with various Stakeholders in China

INSTALLED TALENT POOLThe proportion of female employees in engineering sector decreases with increase in experience

level

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LOCATION ATTRIBUTES CITY OVERVIEW


12/17Zinnov 12

Key MNCs Domestic Companies

Oracle JinTian

Motorola Software HuaCheng

Ericsson HiSoftHP Vanceinfo

EMC Neusoft

Myriad Beyondsoft

Dreamwork Elegon

Gameloft lanxum

Sobey Digital Technology Co. Weflexforce

DHL Chengdu Shuguang Optic Fiber Network

Maersk Sichuan Xiyasheng Electronics Tech Co

Tencent Chengdu Huari Com. Tech. Co

Nokia Siemens Networks Huawei

Accenture China TelecomWipro China Mobile

3i Infotech ZTE

NIIT SNDA

IBM Symbio

Intel Kingdee

Foxconn Digital China

SAP

Unisys

ZTE

Fujitsu

Symantec

Alcatel Lucent

Tieto

Damco

Lafarge

Freescale

Accor

Manulife

Cisco Systems

Dell

Key MNCs Domestic Companies

Robert Bosch Unitedinfo Worldwide Crop

Emerson Electric Nanjing Dema Technology Co

Harman Isoftstone Information Service Corporation

Microchip Technology Masson Tech Ltd

National semiconductor Senso Software Company

First International Computer Anlysun Electronic R&D Co

Motorola Shanghai WIK Network Tech Co.,Ltd

Panasonic Shenzhen Sinrui Technology Co

Samsung Global-Standard Testing Service Co

CommScope Beijing Morlab Communications Tech. Co

Pixelworks BI Consulting Group Limited

CiscoShijiazhuang Dingnuo Business Management and

Consultation

Yageo Int'L Safety Testing & Certification Net

Qimonda World Standarization Certification & Testing

Schott SIEMIC Info Tech ltd

Fujitsu Promise Technical Consulting Co

NALCO Shenzhen Pema Product Service Co

NSK Global-Standard Testing Service Co

Philips Beijing Morlab Communications Tech. Co

Seimens

HP

IBM

iGate Patni

Chengdu Other Software Companies Suzhou Other Software Companies Sample List

Note:

Source: Investin Chen du Chen du Munici al Bureauof Commerce Chen duHiTech ark officialwebsite SuzhouStatisticalYearbook 2011 Investin Suzhou

LOCATION ATTRIBUTES: CITY OVERVIEWSuzhou is amongst the eleven cities in China with GDP per capita of more than US $10,000

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INSTALLED TALENT POOL ATTRITION TRENDS


13/17Zinnov 13

INSTALLED TALENT POOL: ATTRITION TRENDSAttrition rate is lowest in Chengdu, around 8%, as compared to other Tier II locations

Key Reasons

0%

4%

8%

12%

16%

20%

Junior Level Middle Level Senior Level

Experience Level

4-8%5 to 9%

8 - 12%

International Exposure Opportunities

Competitive Peer Group Pressure

Lucrative Job Market

High Performance Pressure

Limited Autonomy in TeamManagement

Fear of getting type-casted with aspecific work profile

Management and Work CultureIssues

Unmet Job Role Expectations

The attrition rates are lower in Tier II cities as there are difficulties in mobility.

This is a great incentive for MNCs as they can get a good employer loyalty

The attrition rate is also lower in organizations that provide comprehensive

training and have a consistent corporate culture

The workplace environment and supplementary benefits play an important rolein facilitating retention efforts. Common benefits provided by companies

include supplementary meals, medical insurance, loyalty bonuses, performance

related income payments, off-days on special occasions and housing allowances

A lot of foreign companies in Suzhou adopt these measures. Management

positions appear to reap the highest rewards, with some companies paying out

bonuses of more than three months salaries worth, subject to performance

MNCs are also facing the consequences of market overheating. According to a

recent study, local privately owned enterprises are growing at a rate of 42%

Note:

Source: Primar Interviews with various Stakeholders in China Press releases Invest in Chen du

Average Attrition Rate in Software Industry in Chengdu and Suzhou

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INSTALLED TALENT POOL ATTRITION TRENDS


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Zinnov 14

Average Time to Recruit Talent in Chengdu and Suzhou

Management candidates are often readily available but only at higher

salary levels, and their demands may not suitably fit with the internal

payment structure of the whole company This latest trend of high demands from candidates directly drives up

recruiting costs

In addition, detailed screening and background checks more stringently

needed in China add to time invested into the process

Typical hires ramp up in about 30 days

Staying rate of fresh graduates in Chengdu is around 60%

Designation Hiring Timerequired

Entry Level Engineering (Software Engineer 1) 2 weeks 6 weeks

Developer 2 2 weeks 6 weeks

Senior Developer 4 weeks 8 weeks

Principal Engineer 6 weeks 5 months

Management Level 6 weeks 3 months Stock Options

Flexible Working Hours

Long Service Rewards

Education/Training incentives

Employee Recognition

Programs

High Performance Incentives

Monetary Incentives/Bonuses

Measures to Retain and Motivate Employees

Career Expectations

Fast track career growth

Attractive pay packages

Challenging job profiles

Company culture

Professional training & development

Good prospects for high future earnings

Note: Source: Employment and HR Trends in China, Primary Interviews with various Stakeholders in China

INSTALLED TALENT POOL: ATTRITION TRENDSMonetary incentives/ bonuses and employee recognition programs are the major measures

taken by the companies to retain and motivate employees

14

INSTALLED TALENT POOL INNOVATION


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Zinnov 15

INSTALLED TALENT POOL: INNOVATIONTier I cities in China are far ahead on innovation index as compared to Tier II cities

Innovation Capabilities in Tier I and Tier II Cities

Tier I cities like Beijing and Shanghai are high on innovation index.

Beijing leads in the internet domain, followed by Shanghai.

Tier I cities have skilled talent for niche segments like mobile technologies, data analytics, etc.

Tier I cities have strong base for cutting edge technologies, which is absent in tier II cities

Suzhou is low on innovation index, specifically in internet domain as it is dominatedby the outsourcing industry. MNC presence in this domain is almost negligible.

Chengdu is strong on innovation index in electronics domain. It has a number ofstate owned companies.

Few MNCs and domestic companies are present in internet domain.

Tier I

cities

Tier II

cities

Note: Source: Interviews with globalization leaders from peer companies, Talent Neuron portfolio analysis framework, Talent Neuron R&D Council and Talent Neuron city analysis framework15

T l t N Pl tf


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contact [email protected]

TalentNeuron

Global

LocationProfiles

GlobalTalent

Insights

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Insights

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Monitor

Role View

JobEngineer

Talent Neuron PlatformTalent Neuron Platform provides granular data for over 500 cities in 83 countries. It tracks over 12,000 unique data

parameters for a city that spans across location attributes, talent pool size (Domain, Function and Skills), Universities,

Salary and Cost etc.

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