中西部地区会成为在华银行未来的区域服务交付地点？.pdf

Banks on the moveMidwestern China the regional service delivery location of the future?Management summary 1General trends 3Traditional and emerging hubs 5The rising midwest 8Tying everything together: location strategy considerations 11Authors 13Endnotes 14 ContentsBanks on the move | Management summary1China's aim of attracting multinational corporations to establish service delivery centers — offshore centers that perform designated functions for organizations — is embedded as part of the 13th Five-Year Plan for Economic and Social Development (2016-2020). This goes hand in hand with its strategy to shift from a heavy industrial and manufacturing economy to a consumption and service driven economy.Management summary From international banks' perspective, Mainland China has remained an alluring and viable service delivery center option, due to its well-educated labor pool, rising innovation and technology focus and an acceptable cost-base supported by governmental incentives. It is expected that the support needs of international banks in Greater China will continue to grow, which raises the question — where in Mainland China 1. There are four key regions for banking service delivery centers, each with different advantages:Graph 1: Emerging vs. traditional service delivery center locationsshould international banks invest in service delivery center capabilities?To form a view, Deloitte looked at the historic service delivery center footprint for international banks, Chinese banks, and IT service providers as well as trends in location strategy decision factors. Based on our analysis, we found the following:Source: Deloitte ResearchChengdu, Chongqing, Xi’an, WuhanAvailability of workforce, cost savings, growth, new governmental incentivesEmerging LocationsTraditional LocationsMidwestern RegionBeijing, Tianjin, DalianMature infrastructure, high density of experienced talent and new graduates, SOE HQs, Korean and Japanese languageBohai Rim RegionSuzhou, Hangzhou, ShanghaiMature infrastructure, availability of workforce, financial center, English language, MNC HQsYangtze River Delta RegionGuangzhou, ShenzhenMature infrastructure, cluster of high-tech companies, opening-up policies (special economic zone)Pearl River Delta RegionBanks on the move | Management summary2Brochure / report title goes here | Section title goes here 2. Location options are becoming less concentrated: Historically, the coastal regions (Bohai Rim, Yangtze River Delta, and Pearl River Delta) were hubs for both Chinese and International IT and banking service delivery centers due to sound business infrastructure, abundant talent, early governmental incentives as well as proximity to clients and existing operations. Development in the Midwestern region of China, combined with a large available talent pool, lower labor costs, and novel government incentives is pulling service delivery centers toward Midwestern China, a large inland zone centered on the municipality of Chongqing, creating more location options.3. International banks' investment decisions have shifted from "if China" to "how China": A growing share of affluent individuals, paired with the Chinese governments more open policy, is prompting foreign banking players to rethink their China strategy. Rising education levels and supply of talent are likely to overrule pure economic evaluation criteria, in an aspiration to not miss out on China's prosperous future. We are likely to see more service delivery centers being placed in China as more banking players enter the market and respective licenses will be granted.3Banks on the move | General trendsChina is not a new name among service delivery center location options. In the mid 90's, many international banks developed technology, operations and risk management centers in China, capitalizing on the favorable cost structures, as well as effectively souring language skills such as Korean and Japanese. At the same time, many domestic Chinese banks have set up their software development, IT support, research and training facilities away from their headquarters. All this has General trends taken place, as well as global IT service providers having established presence and further expansion in China.At present, banking institutions continue to monitor the increasing potential of China for service delivery center establishment, serving both domestic and Asia Pacific customers. For many international institutions, Chinese centers are typically considered as additional service nodes to traditional hubs such as India, Malaysia and the Philippines. This is especially the case for IT and banking operation functions. Key differentiators compared to other popular global outsourcing hubs include China’s noticeable transformation to a service driven economy paired with a significant and growing supply of well-educated and tech-savvy talent. Additionally, on a provincial level, government incentives encouraging selection of special economic zones a...