Overview 1
Catalyst 1
Summary 1
Key Messages 2
China is investing in a services-based economy of the future 2
Low costs and access to superpower economy will entice outsourcing customers 2
No sign of domestic giants emerging 2
China needs to deliver promotional punch 2
Table of Contents 3
Table of figures 4
Table of tables 4
Market Opportunity 5
China's domestic outsourcing market 5
China's export market opportunity 6
China's economy 8
Huge untapped domestic market 8
Acceptance of Global Sourcing 9
Mitigating risk 9
India's dominance under threat? 9
Saturation in competing locations 9
Education 10
Languages 11
Infrastructure 13
Transport 13
Roads 13
Rail 13
Airports 13
The 1000 - 100 - 10 Project 14
China's Tier 1 outsourcing cities 14
Beijing 14
Shanghai 15
Dalian 16
Criticism of the 1000-100-10 project 17
Government support 18
Geographic comparison 21
Customer Impact 23
Customer benefits 23
Customer pitfalls 24
Competitive Landscape 27
Domestic vendors lack scale 27
Western and Indian vendors well placed for enterprises entering China 27
Go to Market 29
Recommendations 29
Domestic vendors should focus on customer outcomes to build relationships in the export market 29
Invest in talent in second and third tier cities 29
Vendors need to coordinate international promotion strategy 29
Vendors need to be wary of a possible outsourcing backlash 29
Appendix 31
Methodology 31
Further reading 31
Ask the analyst 31
Datamonitor consulting 31
Disclaimer 31
List of Tables
Table 1: IT services and BPO market in China (2008-2013, $ billion) 6
Table 2: Major outsourcing service providers currently operating in China 28
List of Figures
Figure 1: IT and BPO services market in China (2008-2013) 5
Figure 2: Forecast CAGR of IT services and BPO markets in selected countries (2008-2013) 6
Figure 3: How do you rate the education system in China? 11
Figure 4: What are your biggest challenges with regards to your workforce in China? 12
Figure 5: Map of China's 20 selected outsourcing locations 15
Figure 6: Ranking of reasons for choosing locations within China 16
Figure 7: Vendor opinion on China's strategy to designate 20 cities for outsourcing 17
Figure 8: How do you rate the Chinese government's efforts to develop outsourcing? 19
Figure 9: What steps do you think the government should take? 19
Figure 10: What is your view of the way that China is promoted? 20
Figure 11: Comparison of offshore outsourcing locations 22
Figure 12: What are the main advantages of China as an outsourcing location? 24
Figure 13: Buyer concerns - myth or reality? 25
Figure 14: Which areas does China need to improve the most? 26