"More multinational companies select China not only because of its low costs, but also to cash in on the fast-growing Chinese consumer market," said Angela Wang, chair of IAOP's Beijing chapter and senior vice-president of Neusoft Corp, the largest IT solution and service provider in China.
With a profound understanding of the local market, Chinese providers have more resources and advantages, Wang
"That is why multinational companies would like to establish partnerships with Chinese providers," she
According to Wang
, the general costs of outsourcing in China are still 20 to 30 percent lower than in India.
"But China's cost advantage compared with developed countries will disappear in a few years, because of a diminishing demographic bonus and the continued appreciation of the renminbi," Wang
Meanwhile, "it will bring an end to complaints about 'outsourcing causing job losses due to cheap labor', "Wang
Nevertheless, offshore business will continue to grow rapidly, not at the lower end of the market, but from creating new opportunities in the higher end of the market through technical innovation.
aims to expand the total revenue of its cross-border services over the next 10 years to 60 percent of its total income from the current level of about 30 percent, Wang
"An often asked question in the outsourcing industry a few years ago was 'When will China have super-big companies such as Infosys and Tata?' The question is no longer meaningful for Chinese providers," Wang said.
"A large group of employees keeping down the human cost is not the growth model for Chinese companies," she
According to Wang
, China will be the driving force in the next round of development of the outsourcing industry through innovation and skills, and it will change the stereotypical image of the industry as a low-value added business.