China’s outsourcing services has a promising future
China is celebrating her one-month countdown to Beijing Olympics, with the predominant accomplishment of Chinese women’s tennis in Wimbledon, we have the sufficient reasons to make the world convince that China athlete team will surly perform splendidly in this summer. Not only what we would achieve in the sport-related events, but also in the realms of economy, such as outsourcing service.
According to the recent news from Xinhua net, attributed to China’s market potential, rich labor resource, and continuous improvement in infrastructure, China is experiencing the rapid economic development of outsourcing service in the era of international industrial transfer.
Furthermore, the articles from the Economy Times tells us that influenced by the economic slowdown in the United States, the Business Process Outsourcing (BPO) sector is growing and cashing in on the opportunity of more business. For the BPO sector, the US slowdown is the melting in the pot to look for more business in terms of opportunity. BPOVIA is one of the industry leading companies, which hold the chance.
With the booming demands overseas, obviously, as the statistics demonstrates, including ITO (Information Technology Outsourcing) and BPO, China undertook outsourcing services valued at 2 billion U.S dollars in 2007. Of all outsourcing enterprises, 14.2 percent of enterprises have received the Capability Maturity Model Integration III Certification. More than 30 million employees work in service outsourcing enterprises, among which over 250,000 are junior college or college graduates. The staff from BPOVIA are all graduated from prominent universities, and many of them own the international education background.
Accounting for more than 60 percent of total outsourcing services, information technology outsourcing services was the major part of China’s outsourcing industry in 2007. In addition, basic technology service and system application service are the major part of China’s ITO. Comparing with ITO, supply chain management and business process operation are major parts of China’s BPO. BPOVIA is the company which provides the service both on ITO and BPO.
As the trend of a large number of U.S ITO and BPO sectors are turning their eyes to other economies and non-US geographies to fill more space and the models of successfully-run Indian medium sized enterprises, we can optimistically estimate that there would be scores of Bangalore appearing in China. For example, BPOVIA, headquartered in Nanjing, China, largely extend its clients and promote its service, during the recession of the U.S economy.
However, we should not neglect the problems on the imbalance development of outsourcing service. Outsourcing contracts in Jiangsu, Guangdong, Beijing, Fujian, Shanghai, and other places are worth more than 100 million U.S. dollars. They account for two-thirds of total outsourcing services. Fourteen outsourcing service bases assume 80.1% of the entire nation’s outsourcing services. What’ more, China’s main contract countries and regions are the United States and Japan, and the outsourcing industry is mainly concentrated in the information transmission, computer services and software industries, making up 53 percent. Meanwhile, manufacturing services accounted for 30.7 percent of total outsourcing services. The development of other service outsourcing industries lags behind. Moreover, foreign-invested enterprises are the main force undertaking outsourced services. Thus, it will cost us a long period to build a balanced-developing outsourcing service market and overtake the competitors from other countries. BPOVIA has established an excellent role model to the industry, which is devoted to provide ubiquitous service, with its unique work team and universal spirits.
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