As the rise of the internet industry in Southeast Asia puts pressure on big organizations to accelerate their digital efforts, the demand for high-quality tech talents across the region is soaring like never before.
In fact, the shortage of talent has negatively affected the speed of product development, according to Robert Walters, a recruitment consultancy, which found that close to 70% of hiring managers in Southeast Asia take at least three months to fill an open position that is tech-related.
The region is poised to generate 38 billion U.S. dollars in annual revenue in its digital financial services sector by 2025, according to a Google, Temasek, and Bain & Company joint research. With such extraordinary growth potential, it's incredibly urgent to solve the shortage of talent in the region.
Companies are starting to adopt what their counterparts in Silicon Valley did in the past: resorting to outsourcing services. And CLPS is among the most popular ones to date. By acquiring INFOGAIN and RiDik, two Singapore-based IT consulting and services providers, the Shanghai-headquartered financial IT services firm aims at bringing its extensive experience to the Singaporean market and provide better service.
"Singapore is a regional hub. We can further tap into other Southeast Asian countries and expand our market share after our services are well implemented here," Raymond Lin, co-founder and CEO of CLPS, told PingWest.
Founded in 2005, CLPS provides IT consulting & solutions services and custom software development primarily to financial firms worldwide seeking to improve efficiencies and add functionality to their service offerings. The company has a multinational client portfolio that includes Citibank, AIA, eBay, Standard Chartered, China Life, Australia and New Zealand Banking Group (ANZ), First Data, Commonwealth Bank, etc.
"China's financial IT services are relatively mature, and we have accumulated rich experience in providing services to major clients such as Citibank and Standard Chartered in China," said Lin, adding that it is undeniable that China's domestic competition has long become cutthroat. Therefore, the company is taking a fancy to Southeast Asia.
When it comes to financial tech talents, even Singapore, the financial center of the region, is not exempt. According to the Fintech Employment 2019 report published by the Singaporean division of Michael Page, a recruitment company, 94% of companies in the financial tech sectors surveyed agreed that the country is facing a notable shortage of talent.
In order to achieve further localization and deeper integration with the Southeast Asian market, CLPS plans to launch a training system in Singapore to train more financial IT professionals and better satisfy the soaring demand.
Lin told PingWest that CLPS has an exclusive talent pool in certain areas of financial technology, which is a direct result of its training programs in China, dubbed CLPS College. It works with leading Chinese universities to recruit and train graduates in areas such as financial technology, programming languages, blockchain solutions. The company employs hundreds of top graduates fresh out of CLPS college annually, and many are equipped with advanced tech knowledge and the startup mindset of working hard, moving fast. A significant portion of its recruits is expected to join Southeast Asian divisions of the company's local partners, including leading institutions in the world like eBay and Citibank.
Last May, CLPS went IPO on Nasdaq, raising $12.08 million. In October, the company announced its unaudited financial results for FY 2019 ended on June 30, 2019, revenues increased to $64.9 million, representing an increase of 32.7% year-on-year.