INDIA News vFinal DR 17/6/08 09:06 Page 7
Semiconductor India NEWS
Middle class rising in India and China
DYNAMIC growth is being predicted for When you operate in a developed
both the number of contact centres and nation you can sometimes reach a plateau;
customer service agent positions in Asia how do you continue to generate revenue
Pacific. Independent market analysis firm from a saturated market? This is of key
Datamonitor puts this down to a concern for many vendors that have
combination of a growing middle class in operations in developed APAC nations. A
China and India, the expansion in demand second concern is culture; when American
for products and services and the increase in enterprises move into Japan and South
offshoring. According to the report, ‘Asia- Korea there are often cultural confusions.
Pacific – a framework for contact centre The developed countries in the Asia-
growth’, which covers India, China, Pacific region have strong economies, a
Australia, Japan and South Korea, this will strong technological infrastructure and a
lead to the creation of four times as many growing need to service a sophisticated Much has been said about the credit
new contact centre agent positions (APs) in consumer base. Despite deflation issues and crunch facing enterprises in North America
developing markets over the next four years intense competition amongst contact centre and in some parts of Western Europe.
as in developed markets. vendors, Australia’s kangaroo economy Organisations need to geographically
Vendors will need to carefully strategise keeps bouncing along. In contrast Japan’s diversify their portfolios, not only to spread
which country and which vertical markets once frail economy has strengthened in risk but to generate new revenue.
their sales and marketing teams are to target recent years. Despite falling wages, Japan’s We can already see international
if they want to generate profitable revenue economic expansion of the past few years telecoms operators investing in India and
growth, says Mona Sultan, Customer has dramatically increased the demand for China to grow market share. Vodafone,
Interactions Technology analyst with labour. This has increased the demand for South Korea’s SK Telecom and Spain’s
Datamonitor and author of the study. consumer goods and services. Telefonica are all purchasing shares in
A heterogeneous melange of cultures, In South Korea we see cutting edge Chinese companies in the hope of sharing
languages, consumers and countries technologies being used in everyday the rewards of China’s growing economy.
characterises the Asia-Pacific contact centre business and among consumers. This is a The stakes in China Netcom and China
market. Understanding the full range of very promising economic climate for Mobile may be small, but international
macroeconomic, social and business trends contact centre vendors, says Sultan. operators can have significant influence.
in APAC is therefore vital for vendors
creating successful go to market strategies.
India and China currently represent over
Large order from India
one third of the world’s population. India
has traditionally been perceived as an CYAN HOLDINGS, a fabless The devices will be used for vehicle
underdeveloped nation, yet all market semiconductor company providing tracking using GPS, enabling logistics
projections indicate its middle class, and its configurable application software and optimisation within fleet management.
income, are set to increase substantially. production ready modules based on Kenn Lamb, CEO of Cyan, said: “We
The same is true of China; recent reforms feature rich, low power, microcontroller believe that this order and forecast clearly
have put China back on the global trade chips, announced it has received an order demonstrates further progress against the
map. The consequence of the reforms is an of 5,000 units, together with an indicative 18 month turnaround programme we
exploding Chinese middle class, leading to forecast for 40,000 microcontroller chips outlined at the time of the placing last year
an increase in income and an increase in the to be delivered in the next 12 months. and hence is further validation of our new
consumption of goods and services. The order is from a major corporate strategy.
This poses a challenge for enterprise, client based in India. The Group has The Group also reports that further to
says Sultan. Enterprise needs to not only tap already received small initial orders of the announcement on 25th April 2008 that
into this emerging demographic but to up to 1,000 chips from this customer over Mouser Electronics had signed a global
retain their loyalty. What we are seeing in the past few months but the current order distribution agreement with the company,
India, for example, is that APs are set to and forecast from the distributor is it has now received an initial stocking
increase significantly from 370,000 in 2006 indicative of the project moving to order of US$22,500 to initiate the
to 567,000 in 2012; a compounded growth deployment. agreement.
rate (CAGR) of 5.6%.
Summer 2008 | www.semiconductor-india.com 7
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