A Brilliant Butler for Global Giants
With their ever-growing presence on the China market, over 620 global giants rely heavily on the human capital management platform of CDP Group for managing their millions of white collar workers. The long list includes J.P. Morgan, Deutsche Bank, BMW, Continental AG, Novartis, Merck, LVMH, Hermes, Delta Health, just to name a few. A lowkey company with a high reputation in its industry, CDP has pioneered unassumingly the industrial innovations with a focus on cutting-edge technologies. After 13 years of relentless development, it has established a dominant position in HCM service for global companies, and is already a Top 3 player in HR BPO in China. Now, steered by Wang Wei, founder and chairman of the company, CDP is speeding on a new journey, introducing Ecosystem+saas to the HR service industry, with a vision to empower Chinese companies to make their mark on the global stage.
Dream Big for Success
1992, a key year for China’s economic reform, saw the first entrepreneurial boom in the country when an enormous wave of well-educated Chinese start up their own businesses. The second one, led by tech-savvy elites returning from developed countries after advanced education, came around the millennium.
And Wang was one of the best among them. Having lived and worked in Silicon Valley for 16 years, Wang was the third employee of SAP in North America, the largest business app company in the world, where he led the development of its first HR management module in the region. Some of the technologies created by him then are still in active use at American Airlines for system applications of their HR module. In 2000, as China welcomed the return of a drove of IT elites, Wang came home too, in the hope of bringing advanced business concepts and technologies back to the country where the IT industry was on the cusp of explosive growth. The Silicon Valleyhoned entrepreneur tried some highly Internetrelated areas, such as E-commerce and human capital management. And it was the latter one that brought success to him, and vice versa.
Matching his own strong suits with the market demand and industry life cycle in China, Wang introduced Saas to the HR service industry based on the concept of “boost efficiency and save cost for businesses”. An avant-garde in fusing HR service with IT technology, he aimed to build a HR BRO platform to drive forward the entire HR industry in China, and the result: CDP.
“It was a progressive process for me to go from IT to business management consulting, which enabled me to develop a deeper understanding of the whole business process, operation system and HR management of a company, especially a global company, “said Wang, who joked that he was a tech-man. “I truly agreed with the concept that no matter how fabulous an idea or a technology is, it won’t work without the core asset of a company, which is people.”
Over the course of time, the innovative and disruptive concept, “HR + IT”, born out of a highly advanced platform and HR service principles, became recognized as a market standard and a sweeping trend. Now CDP, with less than a thousand employees, helps over 620 global companies in 35 industries manage almost a million white collar workers, a truly cost-effective feat.
Lead with Innovations
As one of the hottest innovations nowadays, Saas is widely used in a range of industries, from finance, education, to software development, retailing and consulting. Saas providers offer businesses on-demand internet infrastructure along with software and hardware platforms, where business processes, including administration, marketing, financing, HR, etc., are handled largely with the assistance of apps instead of manually. In this way, businesses can greatly boost their efficiency while being spared the cost of building and maintaining IT infrastructures on their own. It is like water supply. All the clients have to do is turn on the tap, and they will get what they need.
CDP pioneered in using Saas to innovate HR services and has made it an overwhelming trend. Led by the company, the traditional HR service industry has embraced innovations one after another, like software solutions, cloud computing and Saas, and in consequence reinvented itself.
“In the past, almost all HR data were handled manually and stored on paper, which was really inefficient. When the number of employees got bigger and bigger, the management cost would increase a lot. So I reckoned we could do something about it,” recalling how he started the business over a decade ago, a light of passion for innovation broke over Wang’s face. We are really lucky that our ambition to reshape the industry with software has been achieved in a way, he said.
But Saas is just a technology, which is far from enough, Wang points out. The revolutionary concept of CDP, known as Ecosaas, integrates all the elements in the HCM ecosystem to build a digital platform, which provides a range of services that are richer, more comprehensive and more tailored to the needs of businesses than Saas. In a nutshell, a fundamental HR solution for businesses.
And Saas-based HCM doesn’t stop there. It is expected to grow far more powerful in the future, a prospect that directs Wang’s CDP and the entire industry on a new journey.
After all, Wang’s goal is not just helping to manage a million white collar workers. “Our future market will be much bigger. Some of our US counterparts manage up to 20 million employees for their clients, while demands from Chinese companies have just begun to emerge. ”Wang believes Chinese companies will increase their power and efficiency significantly in the new round of globalization.
In Quest of Further Growth
In recent years, Saas-based HCM has taken the spotlight on the B2B market, as venture capital flocks to this booming industry in China. With its innovative business model, CDP has managed to attract huge investment and resources from five renowned investors, including Morgan Stanley, China Broadband Capital, Investorab, Fidelity Investment and Sumitomo, and as a result achieved powerful synergy of strategies and capital.
With its high-frequency, massive Saas platform, CDP’S HCM solution covers a wide spectrum of services, including corporate payroll, employee welfare, health insurance, and even flexible benefit. Taking advantage of its advanced system, valuable experience of servicing Fortune 500 companies, and a powerful, dynamic global service network to handle astronomical amount of high quality data, CDP succeeds in building a win-win ecosystem with its business partners and maintaining a customer base of over one million with a retention rate of up to 99%.
Building on years of experience and expertise, CDP is now seeking new growth and expanding in multiple dimensions. Currently it is gearing up for financial services and overseas businesses as well as the employee insurance market. “With huge amount of high quality data stored in our system, we are able to develop derivative businesses such as finance service. For example, there’s a lot of room for expansion in terms of the services that we provide in managing the salary, benefit, and even health insurance of the employees of global companies. As we have secured a full insurance license, financial service will be one of our key businesses in the future,” said Wang.
Go Global Together
At CDP, two E’s are stressed: Effectiveness and Efficiency, which speak for the mission of the company: creating cost-effective, efficiency-boosting technologies and services for clients.
While servicing and supporting many global companies in expanding their businesses in China, CDP has accumulated a wealth of technologies and experience in business management, which will be vital in helping Chinese innovative start-ups and public companies go global. Wang aims to bring the two E standards to Chinese companies, as they are becoming increasingly aware of the value of cost-effectiveness in competition with foreign companies and optimization of internal business management. Globalized HR management will be key to global ambitions of Chinese companies.
“We are committed to helping futureoriented Chinese companies develop global thinking in their endeavor to expand overseas,” said Wang.
He is full of expectation for Chinese companies going global. As a strong supporting force behind businesses, CDP has always been regarded as a “brilliant butler” for its international clients in China. But now it is doing something different. As more and more Chinese companies are taking their business global, CDP hopes to play the same role and go hand in hand with them in pursuit of success on the global market.
“We are just at the beginning of it. A company with mixed genes and global perspectives like CDP can provide invaluable digital services for Chinese companies on their global journey, helping them take on the world,” said Wang. “As long as one has dreams, sky is the limit.”
Wang Wei, Founder and Chairman, CDP
CDP Group Global Headquarters