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 the recent news from China Daily, one of the Beijing based outsourcing company was awarded the China Best Outsourcing Provider during the 5^th China International Summit for Client Service. To better serve its multinational clients, the company opened branches and research & development (R&D) centers in the US, Singapore. On the purpose of tackling with the challenges raised by the appreciating of RMB and rising labor cost, the company moved to the city located in centre China, where it can enhance its R&D and service capabilities.

As the recent research demonstrates, each professional in Indian companies on average generates double the revenue of its counterpart in China-while the value create by each employee in US companies is among the highest. The leaves a wide space for Chinese software outsourcing firms to develop future up the value chain.

Thus, it’s a trend for the outsourcing companies to extend their business to other regions of the world. BPOVIA is one of the ambitious outsourcing companies planning to establish its branch in Chicago, Illinois. Besides, the staff from BPOVIA are all proficient, energetic and earnest. BPOVIA have the capacity for the tasks from data entry, office work to the tasks require more advanced skills like website design, graphic design, internet research, etc.

The opening of branch in other countries is one of BPOVIA’s strategic destinations. Owing to the wise choice, the foreign customs would contact with company more easily. In addition, it’s definitely a terrific opportunities for the firm to broaden the business and promote the popularity and image. What’s more, the chain company in other countries will help the custom to save the time and cost on the process of bargaining and negotiation, which would eventually help the customs to make more profits. By offering efficient and flexible service, clients can focus on their core business and gain a competitive advantage in the market.

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IT firm, outsourcing industry

The People’s Bank of China issues the 10-yuan Olympics commemorative bank note today. Astonishingly, there’re thousands of people waiting outside the local banks in many main cities since last night, in order to obtain the golden-like note. The price of the note has risen to 3000 RMB. However, it is would be difficult to imagine that China even had no qualification to participant the Olympics 30 years ago. As the process of the China’s reform and opening up, it makes the people witness the marvelous change of an excellent nation worldwide.

According to the recent report from Yahoo.com, it illustrates some evidences that China will take place of the United States as the biggest super power by the year of 2035. Different from the development of many NIC (newly-industrialized countries) and developing counties, the China’s economy is not merely driven by the export industries, such as textile, toy and clothing, but also by the vigorously domestic demands and other forms of economies. For instance, as the time goes by, a brand-new style of business system emerges, which is called outsourcing, consisted of ITO and BPO, may lead China’s economy in the future. BPOVIA, headquartered in Nanjing, is one of the successful companies which contributes a lot to the establishment and development of the outsourcing industry.

Furthermore, the report mentions a definition of PPP (purchasing power parity), which means the similar function as Big Mac Index. Agencies used to evaluate the purchasing power of currencies, based on the prices of the Big Mac in the McDonald’s chains all over world. The recent research showed that RMB is under-evaluated by more than 50%. Thus, as a matter of fact, the cost of living and goods is higher than it shows. Moreover, owing to the revaluation of RMB and the relatively-high CPI, dozens of export-oriented enterprises are put into deadlocks. Without the advantages of the cheap labor force and exchange rate, Chinese entrepreneurs should find a suitable solution to cope with the adversary. Fortunately, outsourcing industry successfully solve the problem. Based on the hi-tech and skilled staff, ITO and BPO firms could control their costs and provide more high qualities services worldwide. As the industry leading position, BPOVIA is engaged to optimize its service and promote the relation between customs and service providers, which seriously helps the enterprises avoid the routine of price competition, but focuses on the technology and talents.

Pursuing the opportunities of the time transition is fairly essential for the development of economies, such as the Netherlands, UK, Germany, Japan and U.S. Nowadays, China is just promoting its economy as what other super powers used to. The outsourcing industry will surly help Chinese economy to continue its prosperity, control the high CPI and eventually shift China to the summit of world stage.

Although we should not omit the problems on the political democracy, poverty, corruption, social equalities, and other social problems, we optimistically estimate China would eventually overtake the U.S in the near future.

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China's economy, outsourcing industry