Industry Analysis on Outsourcing Business in China

China has an ambitious plan to attract foreign investment in business process outsourcing (BPO) and IT outsourcing (ITO) services. This research will examine the strengths, weaknesses, opportunities and threats (SWOT) of offshore BPO and ITO in China.

Key Findings

China has most of the crucial ingredients necessary to succeed as a destination for offshore BPO and ITO, but it’s currently better suited to serve Japanese and South Korean enterprises.

The lack of quality English-language skills, the high cost of Internet connectivity, inadequate service levels and workforce immaturity make China unsuitable for high-end BPO work for U.S. and European enterprises.

English language skills and Internet connectivity play a different role in ITO; although they still must be improved in China, they’re sufficient to service Western companies. The workforce is rapidly maturing and some of the larger Chinese ITO service companies are winning deals approaching those of their Indian counterparts.

Involvement in China from larger Indian BPO and ITO companies is accelerating the maturation process for Chinese BPO and ITO.

Predictions