BEIJING - Relationship management company Convergys Corp is considering mergers and acquisitions (M&As) or partnerships with system integrators (SIs) as part of its growth strategy in China.
The moves will help Convergys to expand market share in the utilities, telecommunication, and video broadcasting sectors, said Robert A. Lento, president of Information Management.
Convergys anticipates huge opportunities in China as the nation develops smart power grids during the 12th Five-Year Plan period (2011-15) to promote the use of clean energy.
"We're aggressively looking and talking to some of the SIs. We need strong partnerships in China to grow our business especially in the utilities sector," he said.
Technologies built by local SIs currently dominate China's market for system integration, where some of the major clients include telecommunication companies. The company entered China in 2007.
Convergys offers software that could enhance operational efficiency such as customer relationship management.
Its clients include those in the healthcare, government, financial services, and transportation sectors.
Lento, however, cautioned that identifying the right company or partners will be a challenge.
"The big question is - What is the right company? We have to be convinced (that they can offer us value)," he said.
Convergys made its first acquisition in China in 2008 by taking over privately held Shanghai Hong Xun Software Co Ltd from BMI Asia Inc.
Software developed by the Shanghai-based company currently supports over 30 million subscribers in multiple regions at fixed-line operator China Netcom.
The acquisition opened the door for Convergys to tap into China, the fastest growing market in the world, which has a 20 percent annual growth rate in the wireless sector.
At present it has 150 employees in China and is investing 400 to 500 million yuan every year to improve its products.
"We can win over competition in China as our systems are real-time with built-in intelligence, have low costs to operate and can also be easily upgraded," he said.
Listed on the New York Stock Exchange, Convergys has over 100 million active customer accounts around the globe.
