Kpo : Balanced View Of An It Market

Introduction

Outsourcing became a fashionable term in the beginning of the 90s. Many companies, having decided to focus on their core competencies to excel at the market place, chose to outsource noncore activities like Information Technology (IT). Recently, faced with daunting challenges and unhealthy alliances, most companies have been rethinking their IT outsourcing strategy. This report looks at the benefits and risks in IT outsourcing, and how to mitigate these risks. The report also focuses on India – the world’s favorite IT outsourcing destination – the opportunities offered by this country and the challenges faced by companies in India. IT Outsourcing is defined as a decision taken by an organization to contract-out or sell some or all of the organization’s IT assets, people and/or activities to a third party vendor, who in turn provides and manages the services for a certain time period and monetary fee.

 In the recent years the term IT outsourcing is being increasingly used to include any IT activity that is not performed in-house by the company. These includes specific IT Projects, IT call center and service outsourcing etc. For the scope of this report, the latest definition will also be used as a basis for discussion. IT outsourcing industry is expected to grow at an annual rate of 16% to US$ 120 billion. The estimated global market share of the IT outsourcing industry in 1998 was US$ 99 billion. From a relatively unusual entrepreneurial activity, IT outsourcing has recently exploded across the global corporate landscape. Companies outsource IT for many reasons, ranging from its high profile and current popularity to cost pressures from competition and economic recession. Management often regard IT as a non-core activity and believes that IT service vendors have the necessary economics of scale and expertise to handle and provide better and more efficient IT services than their own in house IT department. Some companies are compelled to outsource their IT activity because IT is an enabler in a company and not a revenue producing activity, and managers would rather outsource non-revenue producing activity to a third party who is better skilled in handling such an operation. This perception of IT as a cost burden encourages companies to outsource this activity. Most of the IT operations are regarded as a commodity that does not differentiate the company from its competitors. When an IT operation does not provide a strategic advantage, companies prefer to outsource it to a third party or an outsourcing vendor, who generally claim that they can provide this service for less than what it costs the company’s IT department. In the IT sector, technology is changing at a tremendous pace and organizations cannot keep up with these changing standards and newer technologies. It is at these unpredictable times organizations look at IT vendors to gain access to the best technologies in a cost-effective way.

“By FY 2008 at current rates of  growth, India is expected to be among the top 3 countries in the world in IT revenues”  BY Software Technology Park, India.

 

The birth of Indian IT Market

One of  every four global giants outsource their software requirements to India. The IT outsourcing model was born in India. The Indian IT  industry, being the first, introduced to Software  Organizations, worldwide, the new and highly cost-effective mode of outsourcing. The large technical  resource pool in India was the main reason for the  proliferation of the outsourcing services. The cost of skilled  manpower in India was lower than what other Technical giants offered. The fluency and versatility with English also proved fortifying for the emerging Indian IT region.  

In the early 1990s, the Indian economy underwent a major change in terms globalization and privatization. The Telecom Industry was released from the monopoly of  public sector. It changed the face of the Indian Telecom  Sector with latest facilities, fast connectivity to the world and other advanced telecom technologies. The world  started to see India as a strong IT and BPO service provider. Outsourcing that had started in the 1980s gained a momentum with the boost in the Telecom arena. Major IT leaders emerged in the Indian high tech cities to offer the most competitive brainpower, solutions and services with major time/cost benefits and global connectivity. The skill sets of the Indian technical professionals broadened. The wave of software education in universities and schools significantly added to the number of skilled resources produced, each year.   

                With India emerging as leaders in evolving cost-effective  IT solutions, the quality focus was never lost. Soon Indian software providers started maintaining high quality and performance standards. Indian IT Industry proved its commitment and consciousness to provide world-class quality standards. The investment in ERP initiatives  increased substantially. India soon became the ground for  providing total solutions for Global clients to outsource  turnkey projects. The IT skills extend expertise in a wide  spectrum of services like sustenance engineering services, business process re-engineering, maintenance of legacy  systems, system migration, embedded systems and e-commerce applications.  

The Indian IT domain strengthened with the ability to  provide world-class workplace, 24X7 connectivity, high-speed Internet connectivity and the best security and  networking. Thus, evolved the concept of dedicated development centers wherein virtual extensions of the  clients’ business was established as different units in development centers in India. The clients’ development environment is replicated in the unit setup in India. An onsite team transfers knowledge to the team of offshore professionals for absolute clarity on clients’ business objectives.

Risks in IT Outsourcing: 

There is a saying that goes around in the IT industry: ‘Every company gets the outsourcing partner it deserves’. There is a great element of truth in this saying. Companies that have inefficiently managed their IT department almost always find incompetent outsourcing partners. Whereas, organizations that outsource efficiently managed IT functions derive substantial and further benefits from outsourcing. Companies that have not done their homework prior to the outsourcing decision and companies that have viewed IT as a burden that has to be offloaded as soon as possible have realized that they are in a much worse quandary than ever before. Some of the other risks of IT outsourcing or causes for concern while considering to outsource are mentioned here:

þ   Test the Market : Some companies do not undertake market testing and some do not even consider ‘in sourcing’, where the company may be better of sourcing the activity to themselves, especially in the case of strategic IT functions.

þ   Managing the Outsourcing Vendors :Most companies do not realize that in order to manage the outsourcing activity they need to have good management expertise in the company to begin with. Companies that have faced challenges in managing their own IT department may find it more difficult to handle the outsourcing vendor. Outsourcing the IT function does not naturally take away the scope of management, in fact it demands more efficient and more organized management, which results in better control of the off-site vendor.

þ   Quality of Outsourcing Vendor : While many companies outsource their IT activity because they are incapable of finding and retaining programming staff, companies, much to their consternation, have realized that IT outsourcing vendors also face these same obstacles and challenges. There have been many instances where companies have discovered that IT vendors even bid for specialized projects for which they have no in-house expertise in the hope that they can find these specialists once the contract is secured. Companies that plan to outsource their IT activity may have to do in depth research on the bidders and their reputation and in-house talent.

þ   Cost of Outsourcing : The biggest and the most frequent mishaps happen when companies focus on costs as their single most important driver for IT outsourcing. Most CEOs look at the balance sheet and see IT as one of the biggest consumers of company funds. This is because most of the cost benefits of IT are not transparent. While IT may help other departments to reduce costs, IT as itself may be seen as a department that has increasing costs year after year. Some companies have even gone to the extent of admitting that the so called esoteric benefits derived by IT are not substantiated. In such instances the companies readily outsource IT and see a change in their income statement that is immediate and in some cases even tremendous. But many companies are inadvertently signing away the investment in time and training incurred in developing an IT department. It is likely that the companies have sacrificed their crucial competencies and capabilities that may be extremely hard to regain when the company changes its focus in the future.

þ   Adaptability of rapid IT development :  One of the factors that motivate companies to outsource their IT activity is the belief that they cannot hope to adapt to the rapid changes and new developments in the market place. The companies believe that the vendors will have the agility, ability and the economics of scale to respond to the latest trends and development

þ   Contract Lifecycle : The biggest dilemma companies face while deciding to outsource IT is the length of the contract. Some companies prefer short-term contract and some believe that long-term contract ensures long-term commitment from the vendor. Vendors typically do not prefer short-term contracts, but companies sometimes prefer such contracts as the field of IT is full of uncertainties and companies do not want to be stuck with a vendor who skills are no longer competitive in the market place. A long term contract normally ensures more investment in time and money by the vendors and also gives the vendors incentive to update their skills.

þ   Dependability : When the decision to outsource occurs, companies essentially stop learning about newer technologies, and all the advantages gained by investment made in technology development and adaptation is sometimes wasted. In the long run, the company also finds that there is a lack of informed buyers in the Company as to tomorrow’s technologies. IT outsourcing sometimes does create a dent on the organization’s natural learning process.

þ   unrealistic expectations  : Some companies even regard outsourcing as a necessary evil as they have observed that IT outsourcing affects the innovative capacity of the organization. Companies have often been disappointed when they expected the vendors to be innovative, while still asking them to focus on providing the lowest cost alternative. This leads to unrealistic expectations. Innovation, to a large extent, requires flexibility, resources and certain competency levels that can sometimes be fostered only in-house. While there are tremendous risks associated with outsourcing, the benefits derived from outsourcing the right way are manifold. The growth of IT outsourcing is increasingly based on ‘selective sourcing’, characterized by short-term contracts for specific activities.

 

India – the leading  destination for outsourcing IT services

The  size  of  the  IT  outsourcing market  in  India  increased  from  $2.9bn  in  2002  to $12.5bn in 2007, reflecting a CAGR(Compound Annual Growth Rate) of 33.9%, and is further predicted to grow to $40.9bn by  2012, at a CAGR of 21.2%.

Key market features include:

þ   Transaction  intensive  business  process  outsourcing  (BPO)  services  account  for  nearly  78%  of  the  revenue mix,  and  knowledge  driven  process  outsourcing  (KPO)  garners the  remaining  22% market  share.  Industry  experts  estimate  that  after  2012  revenue contributed  by  these  segments will  change  substantially, with  the  BPOs  contributing  nearly two thirds of total turnover, followed by the KPOs with the remaining one third share.       

þ   Revenue mix  is essentially driven by exports  to  the US and Europe. Presently, exports  account for nearly 85% of the total IT market in India – a trend that is also predicted to continue in future India currently accounts for a near 45.0% share of the global IT outsourcing market.

þ   According to key players this is predicted to grow to nearly 55.0% by 2012 – largely due to the accelerated growth of KPO, as well as in the growth of BPO services. In addition, outsourcing  is set to  increase  from continental Europe and the Middle East, on top of the traditional markets i.e. the US and the UK.

 

India Vs China – The IT Outsourcing War

“One of every four global giants outsource their software requirements to India”

McKinsey studies, infogain

In the past, there have been several speculations about China capturing the major share of Indian IT outsourcing market. But as leading market researchers probe further into the changing economies of both China and India, the studies reveals positive results for the Indian Software Industry. China has several critical problem areas to counter before it becomes a threat to the Indian IT supremacy.  Even though the revenue from IT sector for China has increased, it still lags behind the Indian IT revenue. In fact, according to the reports, it is still half of India’s share, which is $12.7 billion a year. The main reason that outsourcers in U.S. rely on Indian software providers is the maturity and stability of its outsourcing market and advanced telecom infrastructure. China also faces a shortage of technical English-speaking resources. Countries like Philippines, Singapore, Russia and Ukraine, recently surfaced to provide outsourcing alternatives but the political instability is a major drawback for them.

In the last decade India dominated the IT outsourcing  domain. Meanwhile, China geared up aggressively to brace up its software-outsourcing Industry. The booming economy and low wages in China emerged as the strengths that could threaten the Indian IT market. 

But as per reports and surveys of leading market researchers, it will take several years for China to match the quality and expertise of Indian IT services domain. The Chinese IT industry is fragmented and needs to consolidate to attract major players, worldwide.  “For starters, the Chinese must consolidate their highly fragmented industry to gain the size and expertise needed to capture large international projects. Currently, there is little movement in this direction,” says a McKinsey report. 

 

India still continues to evolve as the leading player in IT arena. The factors that have led to the accelerated growth are the support from Indian Government to open policies, excellent IT education system, English speaking, flexible regulations, investor friendly reforms, knowledgeable talent pool of IT professionals and managers.   

The future of outsourcing : India is the world ’s favorite outsourcing  destination   

Knowledge Process Outsourcing (KPO) is the biggest revenue grosser in India as KPO companies move up the value chain in their service offerings which includes: 

1.  Research and Development 

þ   Product Innovation – Companies are going beyond basic research to invest in innovation and new product development. Companies that have invested in R&D in India are Cisco Systems, Motorola, Hewlett-Packard, Google General Motors Corp. and Boeing Co among others. 

þ   Co-development- In pharmaceuticals, India has the opportunity of co-development and ownership of new patented drugs through drug research, clinical trials and manufacturing. Indian pharma major Ranbaxy has an agreement with MNC GlaxoSmithKline to commercialize compounds they develop together.

2.  Legal Outsourcing :

India ’s large pool  of qualified English-speaking lawyers with experience in the British legal system can offer paralegal support, legal support and patent services. A few Indian companies affiliated with American law firms are now able capture a tiny piece of the American market. They are now doing legal research at very high rates by Indian standards but yet 50% below typical American rates. 

3.  Engineering Outsourcing :

     India can provide high-quality engineering services in the fields of: 

Mechanical & Electronic engineering – analysis and design , embedded software 
Plant Design, Process Engineering 
Plant Automation Services 
Enterprise Asset Management and OEM solutions

4.  Remote Infrastructure Management Services : 

India can offer management services for IT infrastructure, applications operations, IT security and maintenance. This sector presents great potential through large-value multi-year contracts 

5.  Accounting Services :

We are in the initial stage where payroll processing and some accounting is being done for large American companies. This trend will continue and soon a full range of accounting and tax services will be provided by Indian companies. 

6. Outsourcing opportunities for India exist in other fields like Financial Research, content development, medical writing: animation, film, publishing, web services; Human Resource outsourcing: recruitment, training, Education, Nanotechnology and many others. 

Germany – the World’s Most Experienced Market Economies

Germany as an economic hub
Germany is one of the most highly developed industrial nations in the world and, after the USA and Japan has the world’s third largest national economy. With a population of 82.3 million Germany is also the largest and most important market in the European Union (EU). In 2007, Germany’s gross domestic product (GDP) totaled EUR 2.42 trillion, which translates into per-capita GDP of EUR 29,455. With an Export volume of EUR 969 billion or one third of GDP in 2007, Germany is the biggest exporter of goods worldwide, and as such is considered to be the “export world champion”, more of a global player than almost any other country and more strongly linked to the global economy than many other countries.

Most recently, the German economy has seen a robust upturn, growing 2.5 percent in 2007. The increase in corporate investments was especially pronounced at 8.4 percent. The economic growth, stimulated by factors both inside and outside Germany, sparked a reduction in the number of registered unemployed. Economic policy has improved the overall conditions and companies have sharpened their competitive edge. Thus, ancillary wage costs have been reduced, the labor market made more flexible and red tape slashed.

An attractive location for foreign investments
Germany is one of the most attractive countries world-wide for International investors. On an international country comparison, Germany does especially well as regards R&D, skill levels and logistics. Moreover, it enjoys a central geographical position, offers strong infrastructure, legal certainty, and the right workforce. The labor force’s high level of qualifications is seen as an important plus point. Around 80 percent of employees have undergone formal training and only 20 percent hold the degree from a higher education institutes or university. The “dual system” for vocational training provides the bedrock here, combining on-the-job and college training, a policy which results in the well-known high standard of education.

Technology leader in many sectors
Germany is one of the leading nations regarding numerous technologies of the future that have exceptional growth rates. These include bio-technology, nano-technology, IT and the numerous high-tech divisions in individual sectors (aviation and aerospace, electrical engineering, logistics). Companies specializing in environmental technology (wind energy, photovoltaic power and biomass generation) have emerged as front runners. Today, Information and communications technology follows car-making and electronics engineering as the third largest economy’s sector. As per to genetic engineering, Germany is second to the United States worldwide and already has cutting edge in numerous fields of nanotechnology.

The key industrial sectors
The key industrial sectors are car-making, electronics, mechanical engineering and chemicals. As is the case in all western industrial nations, for several years now German industry has been in the midst of structural transformation. Some traditional industries (steel, textiles) have in partly shrunk considerably in recent years, with target markets now elsewhere and strong pressure from lowwage countries, or, as in the case of the pharmaceuticals industry, through M&As have come under foreign ownership.

Successful: Germany in the global economy
Given its high level of exports, Germany is interested in open markets. The most important trading partners are France, the USA and Great Britain. In 2006, goods and services worth EUR 85 billion were exported to France, EUR 78 billion to the USA and EUR 65 billion to Great Britain. In addition to trade with the original European Union member states, since the EU’s expansion eastwards (2004 and 2007) there has been a pronounced increase in trade with the east European EU member states. In total, a good ten percent of all exports go to these countries. The importance of trade and economic relations with emerging nations in Asia such as China and India is growing continually.

Economic system: Performance and social balance
Germany is a Social market economy. This is other strong reason why Germany enjoys a high degree of social harmony, something reflected in the fact that labor disputes are so rare here. On average between 1996 and 2005 the work force went on strike for on just 2.4 days per 1,000 employees and thus less than even Switzerland, which saw 3.1 days of strikes. The social partnership of trade unions and employer associations is enshrined in the institutionalized settlement of conflicts as outlined in the collective labor law. The Basic Law guarantees the social partners independence in negotiating wages, and they accordingly have the right themselves to select the working conditions.

All the latest information about Germany economy is available at German Information Centre. So if you are interested in knowing about Germany economy please visit at German Information Centre.

Bharatbook.com: Emerging Technologies and Trends of Advanced Rechargeable Battery Market

Whether it is a battery for the latest laptop, energy storage for a hybrid electric vehicle, or backup power for a remote telecommunications site, everyone wants a battery that has the highest energy density, best safety factor, and longest life in term of discharge cycles and ease of maintenance while still being environmentally friendly. These are the drivers behind rechargeable battery research around the world today. Rechargeable batteries, also known as storage batteries, are a continuing strong market, with worldwide sales of $36 billion in 2008. The rechargeable battery market will rise to $51 billion by 2013. (http://www.bharatbook.com/Market-Research-Reports/Advanced-Rechargeable-Battery-Market-Emerging-Technologies-and-Trends-Worldwide.html)

Lithium-ion is the battery chemistry of choice for future generations of portable electronics and hybrid and plug-in hybrid electric vehicles. In 2008, lithium-ion battery research had more funding than all other battery technologies combined. Nanotechnology and chemistry advances in electrode design are the key research topics that companies are using to push lithium-ion to be the dominant energy storage technology in the future.

The portable rechargeable battery market, of which lithium-ion has a 75% share, is the fastest growing segment of the rechargeable battery market, showing world market growth of 20% in 2008. Nickel-cadmium (Ni-Cd) batteries, still important for power tools and back-up systems, will decline rapidly in market share by 2013 due to stricter environmental controls on cadmium. And Ni-MH will see its market share slowly erode due to increasing lithium-ion market share and new silver-zinc and nickel-zinc rechargeable battery chemistries that are coming to market.

But despite the growing portable rechargeable battery market share, tried and true lead-acid battery technology continues to head rechargeable battery sales with a U.S. rechargeable battery market share of 79% in 2008. Current research using carbon based cathodes means that we will see lead acid batteries hold their traditional stronghold markets of automotive, industrial, and telecommunications backup markets.

Ni-MH hybrid vehicle batteries, which accounted for 1.7% of the world rechargeable battery market in 2008, will grow to hold 4.2% of market share by 2013 and will be shared by Ni-MH and lithium-ion batteries. Large scale batteries, particularly sodium sulfur (NaS), will grow from a $235 million per year market to $900 million a year in 2013 on the growth of increased renewable energy power generation.

There are other possibilities on the energy storage horizon such as ultracapacitors and fuel cells. But the reality of the next five years is that rechargeable batteries will continue to be the energy storage system of choice for portable electronics and power tools, as well expand new markets in motor vehicles and large scale renewable energy systems.

Advanced Rechargeable Battery Market: Emerging Technologies and Trends Worldwide contains comprehensive data on the U.S. and world market for storage batteries, including historical (2002-2008) and forecast (2009-2013) market size data. The report identifies key factors driving battery research, trends affecting the marketplace and market growth, and profiles major marketers and consumer demographics.

Contact us at:
Bharat Book Bureau
Tel: 91 22 27578668
Fax: 91 22 27579131
Email: info@bharatbook.com
Web: www.bharatbook.com

Advanced Storage Battery Market: From Hybrid/electric Vehicles To Cell Phones-Aarkstore Enterprise

Whether it is a battery for the latest laptop, energy storage for a hybrid electric vehicle, or backup power for a remote telecommunications site, everyone wants a battery that has the highest energy density, best safety factor, and longest life in term of discharge cycles and ease of maintenance while still being environmentally friendly. These are the drivers behind rechargeable battery research around the world today. Rechargeable batteries, also known as storage batteries, are a continuing strong market, with worldwide sales of $36 billion in 2008. The rechargeable battery market will rise to $51 billion by 2013.

Lithium-ion is the battery chemistry of choice for future generations of portable electronics and hybrid and plug-in hybrid electric vehicles. In 2008, lithium-ion battery research had more funding than all other battery technologies combined. Nanotechnology and chemistry advances in electrode design are the key research topics that companies are using to push lithium-ion to be the dominant energy storage technology in the future.

The portable rechargeable battery market, of which lithium-ion has a 75% share, is the fastest growing segment of the rechargeable battery market, showing world market growth of 20% in 2008. Nickel-cadmium (Ni-Cd) batteries, still important for power tools and back-up systems, will decline rapidly in market share by 2013 due to stricter environmental controls on cadmium. And Ni-MH will see its market share slowly erode due to increasing lithium-ion market share and new silver-zinc and nickel-zinc rechargeable battery chemistries that are coming to market.

But despite the growing portable rechargeable battery market share, tried and true lead-acid battery technology continues to head rechargeable battery sales with a U.S. rechargeable battery market share of 79% in 2008. Current research using carbon based cathodes means that we will see lead acid batteries hold their traditional stronghold markets of automotive, industrial, and telecommunications backup markets.

Ni-MH hybrid vehicle batteries, which accounted for 1.7% of the world rechargeable battery market in 2008, will grow to hold 4.2% of market share by 2013 and will be shared by Ni-MH and lithium-ion batteries. Large scale batteries, particularly sodium sulfur (NaS), will grow from a $235 million per year market to $900 million a year in 2013 on the growth of increased renewable energy power generation.

There are other possibilities on the energy storage horizon such as ultracapacitors and fuel cells. But the reality of the next five years is that rechargeable batteries will continue to be the energy storage system of choice for portable electronics and power tools, as well expand new markets in motor vehicles and large scale renewable energy systems.

Advanced Rechargeable Battery Market: Emerging Technologies and Trends Worldwide contains comprehensive data on the U.S. and world market for storage batteries, including historical (2002-2008) and forecast (2009-2013) market size data. The report identifies key factors driving battery research, trends affecting the marketplace and market growth, and profiles major marketers and consumer demographics.

For more information please visit:

http://www.aarkstore.com/reports/Advanced-Storage-Battery-Market-from-Hybrid-Electric-Vehicles-to-Cell-Phones-13042.html

PH.NO. 919272852585

China has become the biggest consumer market in coatings, nano-green paint for the new favorite

  After the reform and opening up in China, due to one-fifth of the world’s population has undeniably become the world’s largest consumer market in coatings, paints a number of astute businessmen invest in the wealth coveted best choice, with the concept of environment and health, highlighting, low-grade conventional paint will gradually be eliminated, a new environmentally friendly coating technology to become the new favorite paint market investment, the Beijing Science and Technology Engineering Research Center for up to Albert R & D technology, the advent of nano-modified coatings, just to meet this market gap.

   Lay big country with 1.3 billion people China has become the world’s largest consumer market in the fact that coatings

    Since the reform and opening up, China’s economic construction has made the changes that caught worldwide attention, forming the world’s undisputed largest investment market, including paint industry to become the investment market is an outstanding new army, wide concern.

  China has the world’s fifth of the population, equivalent to one-fifth of the world’s housing, as an emerging market countries, their most notable change is the growth of the national economy brought about by changes in the form of housing for the planned economy came from the 400 million Chinese families experiencing change purse has deflated saturation of the process, listed in the clothing, food, housing, consumption, the first four is housing, money and after going to do the most important thing is to buy house, This is a common Chinese people’s mentality, which led to China’s booming real estate industry in particular, and promote the prosperity of the related industries to form a huge industrial chain, including architectural coatings became the chain’s most eye-catching bright spot.

    

    Spawned the concept of green living environment and health of household demand for environmentally-friendly paint Zou Qiao Market

    In recent years, the architectural coatings market has quietly created a revolution without guns in this transformation, new environmentally-friendly paint with traditional paints launched a “bayonet fighting,” although the surface, the traditional paint is still “ambition die “occupy a certain market structure, but the basic trend of the future of paint of view, the decline of traditional paint and” died a natural death, “environmentally friendly water-based paint has become a foregone conclusion fully replaced.

    And human health are directly related to none other than the non-architectural coatings, and people living in the room most of the time, every time without exception intimate contact with the coating; formaldehyde, heavy drugs, birth defects, modern medicine has found that becoming more and more against the traditional paint people’s health, “the chief culprit.” Thus, scientists in research and development of water-based high-grade environment-friendly paint products, efforts have not stopped.

    The birth of nano-modified coatings market has become the trend of the end of the traditional paint

  Although the market for various types of paint labeled green font numerous, but the real environmental value of the coating is a rare, in particular, working up to the Beijing Science and Technology Research Center, Albert introduction of nano-modified coatings technology has become rare in today’s high-grade environmental paint patent products, through Guoxue construction materials testing centers and the National Environmental Monitoring Center for testing, the performance index is much better than the national GB/T9755-2001 and GB/T9756-2001 excellent product standards, environmental indicators are in line with the latest implementation of GB/18528 -2,001 Total Analysis standards, by the State authorities assessed as “high-quality, non-toxic green products”, “China’s building materials market at ease” and recommended it. So far, the popularity of nano-modified green paint is still very limited, the traditional investors through the transfer of patented technology means access to the production of nano-modified coatings franchise.

                         

    What is nanotechnology? Nano is the smallest unit of length measurement, a nanometer long length of only millionths of a millimeter. The use of nano-technology, materials to re-build the ordinary matter after they have do not have the traditional materials and chemical characteristics of the singularity.

  Nano-technology allows many of the traditional products “fundamentally changed” the use of traditional materials in the production of nano-modification technology that can improve or to obtain a series of functions. This improvement is not necessarily expensive, but they make our products more competitive. Beijing working up to Albert’s study of nano-modified interior and exterior coating technologies mainly through advanced formula and process for coating was modified, the feasibility of industrial production is good, its products are superior to ultra-high index of non-nano-class paint at home and abroad, but also with a series of nano-functional role, such as: ultra-sparse nature of binary pairs of synergistic interface, any oil quality, water, ink, dust and so can not be retained on the building surface, a long-term spotless; nano-material with photocatalytic purification properties, catalytic purification Atmospheric environmental protection, the release of negative ions of reactive oxygen species; due to the small size of nanoparticles, the surface fraction higher than the wavelength of visible light (400-750) mm even smaller, to have strong absorption of ultraviolet light, so to make coatings with a worry-free anti-aging properties and so on.

                   

    Nano-modified coatings market analysis and investment outlook

    Paint as a decorative material, the application is extremely broad, from the demand for real estate trends to see the national per capita living area of 7.9 square meters to 9 sq m, the new housing will reach 10 billion square meters, the building of public and production buildings of up to 3 billion square m, and about 5 million square meters of Jiuzai transformation; the other, according to incomplete statistics, China Building Decoration Association, China Building Decoration Engineering volume is a straight line to grow to market size in 2005 will reach 300 billion yuan; Chinese coatings industry has to enter Express Road, is expected to demand for the domestic market for architectural coatings will be growing at a rate of 8% per year; paint industry has already become a sustainable development, flourishing sunrise industry.

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