Product Type: Market Research Report
Published by: Datamonitor
Published: August 2009
Product Code: R313-54245Description Introduction
China is emerging as the economic superpower of the 21st century, and will play a key role in all global industries, outsourcing included. Already a key location for low-cost application development, China is looking to expand its reach across outsourcing sectors.
Scope- This report looks at the opportunities available to IT and BPO vendors in China
- It contains the results of a survey of Western, Indian and Chinese service providers
- Topics covered include government incentives, workforce attrition, the promotion of China internationally, education and infrastructure
Highlights
For some years, China has been seen as the long-term challenger to India for the crown of key outsourcing destination. As the country's economy develops, and massive amounts are invested in infrastructure, the scale of opportunity in China is becoming increasingly apparent to enterprises and services vendors alike.
The Chinese government is anticipating the need to migrate its economy from manufacturing to a services base in the long term, and has put in place a strategy to ensure that China will eventually rise to challenge India in the outsourcing sector.
Reasons to Purchase- Provides an in-depth look at the challenges and benefits of delivering IT services BPO services from China
- Offers recommendations to vendors interested in setting up a sourcing facility in China
- Provides insight into the opinions of Chinese and international vendors on the major issues affecting the Chinese outsourcing market
Table of Contents - Overview
- Catalyst
- Summary
- Key Messages
- China is investing in a services-based economy of the future
- Low costs and access to superpower economy will entice outsourcing customers
- No sign of domestic giants emerging
- China needs to deliver promotional punch
- Table of Contents
- Table of figures
- Table of tables
- Market Opportunity
- China's domestic outsourcing market
- China's export market opportunity
- China's economy
- Huge untapped domestic market
- Acceptance of Global Sourcing
- Mitigating risk
- India's dominance under threat?
- Saturation in competing locations
- Education
- Languages
- Infrastructure
- Transport
- Roads
- Rail
- Airports
- The 1000 - 100 - 10 Project
- China's Tier 1 outsourcing cities
- Beijing
- Shanghai
- Dalian
- Criticism of the 1000-100-10 project
- Government support
- Geographic comparison
- Customer Impact
- Customer benefits
- Customer pitfalls
- Competitive Landscape
- Domestic vendors lack scale
- Western and Indian vendors well placed for enterprises entering China
- Go to Market
- Recommendations
- Domestic vendors should focus on customer outcomes to build relationships in the export market
- Invest in talent in second and third tier cities
- Vendors need to coordinate international promotion strategy
- Vendors need to be wary of a possible outsourcing backlash
- Appendix
- Methodology
- Further reading
- Ask the analyst
- Datamonitor consulting
- Disclaimer
- List of Tables
- Table 1: IT services and BPO market in China (2008-2013, $ billion)
- Table 2: Major outsourcing service providers currently operating in China
- List of Figures
- Figure 1: IT and BPO services market in China (2008-2013)
- Figure 2: Forecast CAGR of IT services and BPO markets in selected countries (2008-2013)
- Figure 3: How do you rate the education system in China?
- Figure 4: What are your biggest challenges with regards to your workforce in China?
- Figure 5: Map of China's 20 selected outsourcing locations
- Figure 6: Ranking of reasons for choosing locations within China
- Figure 7: Vendor opinion on China's strategy to designate 20 cities for outsourcing
- Figure 8: How do you rate the Chinese government's efforts to develop outsourcing?
- Figure 9: What steps do you think the government should take?
- Figure 10: What is your view of the way that China is promoted?
- Figure 11: Comparison of offshore outsourcing locations
- Figure 12: What are the main advantages of China as an outsourcing location?
- Figure 13: Buyer concerns - myth or reality?
- Figure 14: Which areas does China need to improve the most?
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