Because the global financial crisis may force more Western companies to outsource their business to China, One of the world’s largest IT outsourcing firms, US software outsourcing company CSC, announced on Oct 28^th that it will launch another new centre in the country.

Michael Laphen, chairman and chief executive officer of CSC, said in order to go through the financial crisis, more companies have to outsource their business in pursuing of lower costs, thus creating more opportunities for outsourcing companies.

“Outsourcing will increase in difficult times as the financial crisis pushes companies to become more cost effective,” said Laphen. “We expect further robust growth from China.”

CSC’s new delivery centre, which is located in Tianjin, will open next spring. Its service includes both CSC’s domestic and multinational clients in China and it will have 500 employees within the next three years.

But Laphen did not dwell on the scale of the investment in China.

Despite the huge influence of the financial crisis, CSC is still optimistic about economic prospects in China.

It is said that the two major customers for CSC in China, that is the country’s manufacturing and financial companies will continue to grow fast.

During the past decades, multinational have reduced costs through transferring non-core business to countries like India and China.

But as Chinese labour costs rise, outsourcing companies in the country have been trying their best to increase the supply chain and earn money with more value-added services.

According to Lin Zheying, deputy director of foreign investment administration department under the Ministry of Commerce at an industry forum, financial crisis brings good opportunities to China to develop outsourcing in service sectors, because many US financial institutions may have to outsource their business.

It is believed that the company which is doing outsourcing service like BPOVIA in Nanjing will have more opportunities.

Based on the data of the ministry, the value of foreign contracts of Chinese outsourcing companies reached $1.9 billion in the first eight months, up 17 percent from the same period last year.

CSC entered the Chinese market in 1991 and now owns about 300 employees in the country, the offices of which distribute in Beijing, Tianjin, Shanghai and Guangzhou.

CSC has approximately 90,000 employees globally and reported revenue of $17.1 billion for the 12 months ended July 4, 2008.

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