Developing Long-term Competitive Advantage through Scalable Human Capital Platform in China.

While we are confident we are well-positioned in managing a large body of Chinese resources, iSoftStone recognize that each of our client-facing people must attain a certain level of sophistication, both technically and in English, in order to have a long-term career path serving our increasingly demanding clients.

Our approach to building English-centric scalability has been a multi-stage approach, with developments phased-in as we have reached various size milestones over the past few years. In 2007 iSoftStone established dedicated training centers alongside our Global Delivery Centers (GDCs) in Wuxi and Tianjin, which at present are two of our three key locations for long-term scalability in our China delivery platform. Additionally, as we have won more client engagements involving international clients, and at their own locations outside China, we have sent our people to client sites for project work, not only for revenue generation purposes, but also to help them become productive technically in a foreign language environment, with sophisticated Western clients in particular.

In late October 2009, iSoftStone had a major milestone, that will be a strong differentiator as we continue toward the next phase of growth and beyond. Together with the for-profit arm of Carnegie Mellon University, the creator of the CMMI standard, we founded the iCarnegie-iSoftStone Institute for IT Professionals in Wuxi, China. This institute will use the iCarnegie curriculum to train university graduate students in software engineering, IT development and IT management, with all courses being taught in English.

China has reached a point of readiness for serving global outsourcing clients, and iSoftStone is a leader with our investment in a scalable human capital platform.