Chinese Outsourcing

As "China's outsourcing market is in its infancy," it is showing promise as a leading competitor in our global economy. Domestically, its outsourcing market is in its early developmental stages, so its impact on the countries overall economy as a whole is meager, but proving itself to be a promising major role.

A VanceInfo Technologies report "forecasted China's outsourcing growth to soar 30 percent annually from 2009 to 2013, compares with an impressive but modest 19 percent growth elsewhere in the world for the same period." Chinese outsourcing is largely composed of IT, which alone with BPO exceeded "$9 billion and $6 billion, respectively" in 2007. As of 2009, China had "more than 6,600 outsourcing firms that provided services for foreign companies, according to the PRC Ministry of Commerce." 

Looking at these numbers, China seems to be taking a role as a major competitor in outsourcing, especially in the IT and business areas. However, Chinese companies are new to outsourcing. Chinese companies have “recognized the need for outsourcing, complementary skills, local and international experience, and industry practices together with cost saving”, proving them to be a major new competitor in respects to outsourcing in the global economy. Chinese companies, although new to outsourcing, are ready jump in with both feet and test their best new technologies and business approaches on the global playing field.

In regards to technology and engineering, China has found this to be a strength and will build upon this in how they approach outsourcing. According to the PRC National Bureau of Statistics 2007 China Statistical Yearbook, “China graduated more than 1.5 million engineering majors… In comparison, the United States graduated 124,388 engineering and engineering technology majors in 2006, according to the US-based National Science Foundation. An inequity with this would be the difference between what is defined as an “engineering student”, which Wright points out in her report. What is considered to be a standard for Chinese may not be what the United States defines the position as. This leaves one country at more of an advantage over the other, depending on which has higher standards. This creates an inequity in regards to offshoring between the U.S., China, and other competing countries (ex. India).

Overall, the Chinese attitude toward offshoring is positive and is thought to bring their economy prosperity and success. Their education system, population, and business-mindset give them an advantage in the global economy, as they have an influx of people to offshore. China is a rising competitive power in the global economy, not only through their relations with America which we are all familiar with, but also through their rise in outsourcing IT businesses and their companies attitudes to globalize.

"China’s Emerging Role in Global Outsourcing." China Business Review. N.p., n.d. Web. 27 Mar. 2014. <http://www.chinabusinessreview.com/chinas-emerging-role-in-global-outsourcing/>.