Sage CRM | Chinese Summit Gordon McGuirk Senior QA Manager

1. Sage CRM |Chinese SummitGordon McGuirkSenior QA Manager

2. About me!! • Senior QA Manager in Sage Technologies, leading the Localisation Centre’s QA Department, and is responsible for delivering quality localised versions of Sage’s CRM portfolio including ACT!, Saleslogixs and SageCRM in multiple markets worldwide. • Have over 16 years of experience in the Software Localisation industry having worked in Microsoft prior to my current role in Sage. During these years I have been involved in many Outsourcing projects and managing these Virtual teams to ensure all processes and procedures are followed to deliver high quality products to the customer. • Over the years I have been working with Outsourcing Companies based in Europe and Asia and have been outsourcing solely to China for nearly 10 years now.

3. Sage CRM and our Formula for Success • End-to-end business management for a front- to back-office view of the business • Quick to deploy with on-premise, hosted and Cloud-deployment options • Recognised by over 12,000 customers as easy to use • Award-winning • CRM • Sage • Group • Plc • Global • Partner • Base • Direct presence in over 70 countries worldwide • Leading provider of CRM for small to medium-sized businesses • 30 years business software experience • Over 1,000 partners globally • Easy to customise to meet your business needs • Experts in rapid deployment

4. Localisation and Outsourcing to China – some tips for success & pitfalls to avoid Agenda: • Reasons for Outsourcing • Vendor Selection Process & Legal Contracts • Why China? • China’s Twelfth Five-Year Guideline, 2011–2015 • Business Culture in China • Strategy for Building Relationships • Successful Roadmap in China • Growing Wealthy Middle Class in China • Practical tips for visiting China – visa application, cities, dining and technology cities and sites

5. Outsourcing - Definitions “Outsourcing is the process of contracting an existing business process which an organisation previously performed internally to an independent organisation, where the process is purchased as a service.” “Offshoring, which is described as “a company taking a function out of their business and relocating it to another country,” whether the external country is physically offshore or not." 5

6. Outsourcing - Reasons

7. Vendor Selection Process Vendor Selection Process Trials Site Visit Detail Proposal Documents Evaluation Matrix Probation Period Contracts & Agreements Evaluation & Feedback

8. Why China? Other 50% 40% 30% 10% 25% 35% 45% India 40% China 10% 15% 35% 65% 2008 2012 2015 2018 “China will take dominant leadership of the outsourcing market by 2015” (Gartner) • Geographic Advantage • Preferred alternative to India • Geographic and cultural proximity to Japan, Korea, Asia • Huge, fast growing domestic IT and general business market • Abundant Talent • 6.3M college graduates in 2010 • English starts in 3rd grade • 20M new English speakers annually • Government Support • $580B government investment in infrastructure in 2009 • €7.4B Investment in Europe in 2011 • €1.6T investment globally by 2020 • 20 cities strategically invest in the IT Outsourcing industry • 12th 5 Year Guideline (2011-2015)

9. China Designated 20 cities as Technology Centres DaQing Tianjin Ha`ebing BEIJING Dalian Xi`an Ji`nan Wuhan Nanjing Suzhou Chengdu Wuxi Shanghai ChongQing HanZhou ChangSha HeFei NanChang Guangzhou Shenzhen Hong Kong

10. Business Culture in China Making Conversation Meetings Entertainment & Gifts Presentations Making Deals Negotiations Corporate Social Responsibility Role of State

11. Strategy in Building Relationships Regular communication with government about company achievements and progress A relationship with the China government is essential to do business with most enterprises Company executives take the lead in the relationship Align with industry players and get 3rd party validation to validate the company’s position Keep on top of the 5-year plan and macro-control plan towards economic development Invite the government leaders or relative administrators to visit your company Pay attention to the political movements between 2 countries Engage in corporate social responsibility through community activities to keep the name out Make full use of diplomatic relations Become “China Client” not “Client China”

12. Successful Roadmap in China • Grow Your Industry • Develop and focus on your industry for at least 3-10 years • Be mindful of China’s 12th 5-year plan • Define Your Strategy • Think globally, act locally • China strategy (Product, Talent, Partner, Milestones, Investments) • Joint Venture • Government Relationship • Establish good communication and PR with the government

13. Middle Class Consumption • Designer Brands Expensive Electronics • Dining Out • Population • There are between 100 million and 150 million people in the middle class in China Composition Middle class is composed of party and government officials, enterprise managers, private entrepreneurs, professional and senior level clerical workers • Jumpstart • The Chinese middle class has grown at a phenomenal rate since the end of the Mao era • Cars Travel • Health Clubs, Recreation • Definition • A household earning over $10k/year, a level regarded as high enough to buy a car or think about purchasing an apartment in China Growth The Chinese middle class is expected to expand by 600 million by 2020 • Disposable Income • Disposable income and consumption rates are expected to increase by 18% a year compared to 2% in US

14. Visiting China • Letter of Invitation & Visa • Cities to visit • Hospitality & Dining

15. Letter of Invitation & Visa Application

16. Chinese Cities Dalian: “The Pearl of the North” Chengdu: “Paradise on Earth” Nanjing: Cultural Center of the East Beijing: The Capital with Cultural Heritage Shenzhen: The First Economic Development Zone Shanghai: The Largest Economic and Financial Centre

17. Hospitality & Dining

18. Thank You!

19. Sage CRM www.sagecrm.com wwwsagecrmcom wwwsagecrmcom Sage CRM (Official Group)