China-Based Offshore IT and Business Process Outsourcing Services: Opportunities and Challenges

This IDC study analyzes China's offshore opportunities and challenges in both IT and business process outsourcing (BPO) service markets. In 2008, the China-based offshore services market had a sluggish growth because of the economic downturn, strong RMB, market consolidation, and fiercer competition with other emerging offshore destinations. Tightening global economic conditions make companies face variable market and severe competition. "Transformation" is widely considered when companies pull through and stand out. With apparent advantage of cost reduction and increasingly reliable deliverables, the trend of global outsourcing remains irrevocable.

"Although we predict a slower growth of global services, the trend toward cost effective, low risk, and innovative solutions will quicken the process of China's global recognition. China-based offshore outsourcers should figure out and fully leverage their advantages to make the best of these transforming times," says Vivian Yu, senior research analyst, Software and Services, IDC China.