The Role Played By China In the Business of Outsourcing
posted in Outsourcing News and Top Outsourcing deals, Nearshore Outsourcing |As more and more companies are joining the gamut of outsourcing, this phenomenon continues to attract a lot of corporate and media attention. What used to be a popular trend is fast turning into a norm. The purpose for outsourcing may be unique for every organization.
In the initial days of outsourcing trend, lots of studies and researchers predicted about China’s ability to challenge various countries like India in outsourcing power. Experts are of the view that China is doing pretty good on that front. China is working hard and showing remarkable progress in the outsourcing business. China is working in collaboration with technology branded names like Microsoft, Oracle and IBM.
It has been noticed by various government organizations and workers in China that the Chinese outsourcing providers are doing more complicated tasks in comparison to the tasks undertaken by the companies in Japan and Korea, which together account for 60 percent of Chinas off shoring business.
It seems that the Western markets are reluctant to offshore jobs to China. The country is presently ranked at a surprising third by 18 percent voters behind India and Russia in a recent silicon.com survey. India is well placed by 38 percent. Another major factor for the reluctance on the part of Western firms in doing business with China is their concern about protection of intellectual property. That’s why software piracy is such a big problem there.
Regardless of all these concerns, most of the Western corporations still cannot refuse to accept the attraction of marketing goods and services to China’s huge consumer market. Most experts are of the same opinion that the country will see a big invasion of business from companies that see the need to establish partnerships with Chinese firms, in order to cost effectively manufacture and sell goods there. These trends can also be noted in India’ s more mature market, the number of electronics companies that manufacture goods in the country is expected to increase over the next couple of years.
China’s economy is growing quickly in the next couple of decades, their salaries will increase rapidly. China is growing quickly in all sectors of economy. Right now the average GDP per capita of China is way more than India’s, even though India’s economy is also growing. Yet, China is trying its level best to compete with India. The future will tell whether China can become the world leader in the field of outsourcing or not. Till then, India remains the recognized leader in Offshore Outsourcing.
