With its low-cost, high-skilled labour force, good infrastructure and growing reputation, China is set to become one of the world’s largest economies and is hot on the heels of India in becoming a leading offshore destination.
While India offers compelling reasons for the offshoring of services that require experience in executing complex IT applications and English language skills, China offers a multilingual (Mandarin, Cantonese, Japanese and Korean) advantage with growing capability in back office processes and software development.
China remains an attractive location for Japan and Korea, however, with the domestic economy booming, the outsourcing providers are also generating substantial revenue from the domestic market.
Some of the key trends we are currently witnessing in the region are:
- Offshoring to China from Europe will remain limited in the coming years and will occur in discrete pockets such as Financial Services, where China is a customer base as well as a delivery hub.
- China will continue to remain attractive to the Japanese and Korean market and its strength in delivery to these locations will improve.
- China will become the Asia hub for setting up captives and shared service centres.
EquaTerra incorporating Morgan Chambers has supported clients who have outsourced both IT and business processes to China and during that time has gained an in-depth understanding of the local market, developing strong relationships with the local and global service providers operating in the region. China is not a location suitable for all. However, for those organisations that can benefit from outsourcing to or within this region, the opportunities are great.
We use our experience and expertise to help those clients create, implement and manage effective and sustainable sourcing strategies which leverage all the benefits that China has to offer both now and for the future.
Deemed the next offshoring leader, China has been in the spotlight for some time now. Yet with India still owning 85% of the offshoring market, will China ever really become a threat?
Exploring its economic drivers, cost saving opportunities, talent and technology infrastructure, along with its legal environment, language capabilities and culture, this report provides an in-depth analysis of China’s position in the industry and evaluates the challenges and risks the country faces as it climbs the ranks to become the top offshoring location.
- For more information on China please contact Vibhash Ranjan.