Friday, March 31, 2006

China warming up for BPO market

Reports suggest that China is warming up for the outsourcing market ,it’s all set to give India a run for its money, with the BPO market hotting up across the Wall.

IDC predicted, in a recent report, that China’s BPO market would surpass geographic limitations, with Dalian as the centre and major cities like Beijing, Shanghai, Guangzhou/Shenzhen as the main nodes. The reason companies are flocking to Dalian are its proximity to markets like Japan and Korea and also its ability to service the Chinese domestic market.

For MNCs, Dalian provides one more low-cost site in their global sourcing network which, till now, has been heavily skewed towards India. Moreover, clients like the idea too. “Clients want a balance in risk portfolio, from a risk and business continuity standpoint,” says Mr Walker.

IBM has 24 delivery centres globally, out of which 17 are in Asia. India is home to 11 of IBM’s centres. Dalian has a substantial Japanese-speaking population and is an established educational centre, boasting 22 universities, and, according to Dalian’s mayor Dia Xeren, 200,000 graduates, a good measure being from the engineering and science faculties.

During my limited interaction with Chinese folks I have found them very confident, determined, academics oriented and needless to say very patriotic. Unlike Indians they are not very keen to move to US or any other country in search of greener pastures. Most of them who go for higher studies and research work to foreign universities always come back to China. They have a keen sense of serving China and probably its one of the reasons why they are so progressive and flexible to adapt.

2 comments:

Anonymous said...

China has surely good potential but it is yet to early to say that China will give India a run for their money because of two reasons. Firstly more and more companies are coming to India. Deutsche Bank is

outsourcing 2000+ jobs
to India and  McAfee is doing the same too. All
these have happened in just last 3-4 days. Secondly, China has for many years
neglected English language in its educational system.

Ajit Chouhan said...

I think India wil continue to remain a leading market but China will emerge a strong asian contender.

Secondly the perception that China is lagging behind India since it has less English speaking population is changing fast.

China has made massive investments to train its people in English.

Also don't forget China,Japan,Korea,Singapore and other South east asian countries will have a huge market for outsourcing ,so China will eat a big pie of the outsourcing cake.