Title: Setting up an offshore processing unit in China for ACS Inc.
Affiliated Computer Services Inc. (ACS) is a Dallas, TX; USA headquartered
Fortune 500 IT Services Company having 53,000 employees across 105 countries and
750 office locations.
ACS started their Asia Pacific Operations by opening a facility in Bangalore,
India in early 2003. Thereafter, they expanded in Kochi, India, Malaysia, Philippines,
Singapore and Japan. Then according to the mandate of the top management it was
envisaged to open up a facility in China.
The primary objectives for this study are:
1) To do a feasibility study of setting up an offshore processing unit in China based
on manpower costs and skill availability. The idea was to map the findings with
the current costs and establish the feasibility. A study of the nature and scale of
educational institutes available in the chosen region which can cater to the current
and future needs of business growth.
2) Study of the rules and procedures for setting up an offshore processing unit by an
American company. This includes procedures for bringing in capital into China,
what business incentives are being given by the Government to such type of
industries. This also entails study of various available facilities in the chosen
reason like energy supply, built out space availability, fire prevention systems,
type of foreign investments allowed and the registration formalities.
3) Preparation of the project planning document and putting the “Capital expenditure
model” in place. This model should capture all possible capital expenses that are
envisaged for successful completion of this project. Once this model and its
associated costs are approved by the management, my responsibility is to track
the costs and monitor variances vis-à-vis the model and ensure that the costs are
After approval of the model the co-ordination with all the stakeholders starts. They are:
a) Facilities: Identifying an office space with the China local management and ACS
worldwide property consultants “Cushman & Wakefield” under guidance from the
International ACS facilities Vice President. Then working with all of them to
ensure the required space is ready to occupy by the stipulated “Go Live” date.
b) Finance: Continuously working with the International Finance team during the
duration of the project and ensuring we are working within the cost model and
budget constraints. This entails periodic reviewing of progress.
c) IT and network: This starts with identifying the network and IT requirements in
terms of applications that need to be accessed and ensuring proper access is
available before “Go Live”, identifying of bandwidth requirements and
accordingly ordering E1 circuits between Tianjin, China and Sandy, USA by
working in close co-ordination with the International Telecom team. Working with
the network team locally (China) as well as USA to ensure necessary changes in
the “Firewall” and router configuration is done for proper access to all required
software applications necessary for processing the day to day HR functions for
d) Procurement: Working in close co-ordination with the local (China) procurement
team in ensuring all required hardware/software and other equipments are ordered
according to the approved capital expenditure model. Following up for timely
delivery and inspection of the quality of goods.
e) Recruitment: Although this is one of the major mandates for the project team for
any new projects, this role was fairly limited incase of the China project as most
people were already on board (acquired from Motorola). The only recruitment
which was facilitated by the project team was the recruitment of the local (China)
network manager. Interview was scheduled with the International Network
Director and this person (Aaron Zhang) was recruited specifically for all China IT
and network requirements.
Choice of site and overview of study undertaken
2) Main Body
a) Study of the educational and academic scenario
b) Study of utilities
c) Study of prevailing Salary and Wages
d) Rules and regulations for foreign investments
e) Registration and approval process
f) Customs policies and taxes
g) Business opportunities
h) Capitalization process
3) Conclusions and Recommendations
- Proposed Methodology for Execution