VanceInfo Tech (VIT)

pgcyf2007 (63.02) Submitted: 5/17/08 4:00 AM : Start Price: $13.33 VIT Score: -22.22

VANCE INFO is the first IT Outsourcing comapny listed in USA Stock Markets





China is copying India strategy to develop a powerfull IT OPutsourcing Sector and this strategy is decided and supported by Chinese Government has promoted several large Outsourcing Centers in the main Cities of China including Dalian, Wuhan, ....





In general English level for Chinese IT profesional is improving very fast even not equal to Indian IT professional still





Labour cost are probably lower in China than in India for IT sector





Management skills for IT Sector in China are lower than India





But there are 2 big markets for VIT


1) Chinese internal market both private companies and government organisations are moving to IT Outsourcing strategies quite fast


2) Foreign companies established in China with a strong outsourcing culture for IT Services





Between its main clients are MS, IBM, ... and there is a strategy to diversify by clients and mrakets ( national and foreign )....





I find still 3 main problems


1) Level of revenue is still too low


2) Number of employees is too high for that level of revenue


3) Not too clear on the company segments in Financial 2008 Q1 report ( most of revenue es related with Research & Development activities ? instead of IT Applications & Maintenace Services)





But one of Chinese companies need to be considered very seriously both as itself and as leader of IT Outsourcing sector development in China

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