As the release of the fortune 500 companies list, the Chinese people are amazingly to see that there are 35 companies on the list (including the enterprises headquartered in Hong Kong, and Taiwan). With sales of $159.26 billion, Sinopec led the Chinese group at the 16th place, followed by State Grid, ranking 24 and China National Petroleum Corp (CNPC), 25. However, it’s easily to assert that the Chinese company, especially Chinese mainland company, the majority of those are state-owned companies and the business of them are concentrated on the realms of energy, financial and telecommunications.

US corporations occupied 153 places among the top 500, down from 162 a year ago, representing its worst performance in more than a decade. Japan had 64 firms on the list and France had 39, compared with Germany’s 37 and Britain’s 34. Moreover, there are 7 Indian companies also on the list.

Although we are glad to see that there are more and more Chinese firms emerging on the Fortune 500 list, but 19 out of the 35 listed companies are stated-own monopolized companies. Moreover, the business of those companies are relatively unitary.

After scanning the 2008 the Global Outsourcing Top 100, Accenture, Tata Consultancy Services and Hewlett-Packard are all ranked highly on the list. They are all worldwide joint-ventures, and their business is not limited by their major items. For instance, Tata is prominent enterprise located in Indian whose major business is iron and steel, and Hp’s laptops are shared a great reputation all over the world. But the outsourcing industry largely helps them to expand the scales of their business and make more profits for the head quarters, which contribute to the roaring revenues of the enterprises.

Infosys Technologies and Genpact are both the Top 100 Global Outsourcing companies and on the list of Fortune 500. On the contrary, most of the China mainland based companies haven’t put sufficient importance to the development of the outsourcing industry.

Outsourcing is subcontracting a process, such as product design or manufacturing, to a third-party company. The decision to outsource is often made in the interest of lowering firm costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of land, labor, capital, (information) technology and resources.

Above is the definition of the outsourcing. It is a trend for the world to concern about the development of outsourcing industry. In addition, there’re more and more large-sized firms to start to run the outsourcing business in order to obtain more benefits from the competitive global market.

Owing to the great progress made by Indian companies, Chinese companies should reconsider their market strategy and try to build the business on outsourcing.

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Fortune 500, outsourcing industry

According to official statistics, almost 480 of the Fortune 500 companies have made investment in China during the past 30 years.
From 1978 to 2007, the country’s total utilization of foreign investment exceeded $760 billion, ranking the first among developing countries and the second largest across the globe.

In 2007 alone, China’s foreign direct investment, which was less than $20 million in 1978 when the country implemented its reform and opening-up policy, reached $83.5 billion and outbound investment stood at $18.7 billion.

Furthermore, China’s foreign trade has also registered a rapid growth, soaring from $20.6 million in 1978 to $2.17 trillion in the previous year.

“By using both the markets and resources from home sand abroad, China has improved its international competitiveness remarkably,” an official said.

Given the promising domestic environment for investment, BPOVIA Ltd, with its professional team providing virtual assistant services, is ready at all time to facilitate our clients’ business process in China.

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BPOVIA, China, foreign trade, Fortune 500, investment