China offers a variety of expansion opportunities for Arvato
What growth potential does the Chinese market offer BPO providers?
China is a huge and rapidly growing market, and therefore offers a variety of expansion opportunities for an integrated BPO service provider like Arvato. Market analysis results indicate that the BPO market, which is relevant to us, will see average growth of more than 20 percent in the year ahead, reaching a volume of close to €5.7 billion in 2015.
What challenges do you face in the Chinese market and what is your strategy in responding to them?
Despite its market volume, the Chinese market is fraught with numerous peculiarities, bordering on restrictions – such as the sharp rise in labor costs over the past few years. As a full-service provider, Arvato China has a wide portfolio of services ranging from marketing services and CRM to e-commerce, SCM and customer care. We currently occupy top positions in these lines of business and are the leading BPO provider in China. In order to maintain or even expand these top positions going forward, it was necessary, in light of rising labor costs, high attrition rates and increasing competition from low-cost suppliers, to improve our existing labor-intensive business processes by using innovative IT systems, and to expand our digitization and business intelligence activities.
What are your company’s strategic focuses for 2013?
We have four key strategic focuses for 2013. First, review and improve the company’s internal controlling processes, structures and systems in order to keep pace with our business growth, and to offer our clients efficient processes. Secondly, invest more in people and organizational developments. A competent, professional and motivated staff is the key to success. Third, strengthen the IT department and improve our IT solutions. And fourth, increase our efficiency. The goal is to achieve operational excellence that will benefit our clients as well.