I’m not referring to the following story because there’s anything practical about it. CSC frequently publicizes its latest contract signing. But this one’s a bit unusual. CSC just signed a $17.6 million contract with China Pacific Property Insurance Company, apparently the second largest property and casualty insurer in China. It has 26,000 employees and 1,700 offices throughout the country.
According to a press release, CPPIC wanted FUTUREfirst, a CSC-built Web-enabled insurance administration system. The system will administer about 13 million policies.
This gives CSC, a big-time outsourcing services firm, a huge footprint in the market that everybody on the service provider side lusts after. We can surely expect CSC to take a giant step forward in new deals — ahead of IBM, Accenture, BearingPoint and everybody else going after the China market — with this agreement in its portfolio.
Also, this article by Paul McDougall on CMP Web site FinanceTech.com adds this note to the story:
China also has its own nascent outsourcing industry that provides IT and BPO services to companies from other countries. About 60% of outsourcing contracts in China are from customers in Japan, according to officials at Beijing's Municipal Science and Technology Commission, with 15% from the United States and 10% from Europe.
I didn’t know that. I didn’t know that 60% of the outsourcing that China does comes from customers in Japan. I also didn’t know that 15% came from the US. I figured it was high — considering I can’t pick up an object in my house without seeing the “Made in China” label — but I didn’t know how high.