Catchig Up The Outsourcing China
Posted in Outsourcing on January 24th, 2012 by admin – Be the first to comment
According to some reports, China is just a few years away from catching up with India as the destination of choice for companies looking to outsource all or parts of their operations. Others say, no way! Too many barriers sit between it and success. The important question right now is what recent developments in China mean to your organization and its outsourcing strategies.
Taken at face value, China’s presence in the service provider world is good news, since much of the impetus to
outsourcing is cost management, particularly in the area of labor. China’s cost advantage — which can translate into as much as a 70% savings over US salaries — sounds compelling.
But, of course, there’s more to consider than simply hourly labor cost. Quality of work, reliability, efficiency, flexibility, ease of communication and cultural issues are just as relevant in laying out an outsourcing strategy, as are macro factors such as geopolitical risks. Accordingly, this multi-part report begins with an overview of the current IT outsourcing landscape in China. We follow this with a quick discussion on the issues every decision maker and manager should think about before sending work to China.








