Why Outsource to China
Undoubtedly China forms the world’s biggest back office to date, but the time when China will take over the World outsourcing is not very far.It is because of the spectacular economic success of China evident from its magnificent GDP growth of 12% in April 2003 and its total import export value that accounts to $ US 620.70billion in 2002.
Not only this, China has attained the status of being only country in the world with the great economic capacity and massive skilled technology resource pool. It offers the world class technology talent at the lowest costs in the world in whatever business one can think of manufacturing, trade, investments, technology, outsourcing and lot more.
1. Growth in technical education
- There are 400,000 professionals working in China currently and the country produces 50,000 to 1000,000 more every year.
- To promote the technical education, the government has opened radio and television universities in addition to traditional schools.
2. Cheap Labor
- China offers savings up to five times as compared to U.S
- The labor is available at half the prices than China
- English has attained the level of China’s second language.
- Government has made the National English proficiency test mandatory for B.A and M.A.
4. Labialisation of laws and government policies
- Government has passed laws tat protect private ownership and intellectual property in country.
- It has also embraced public/private partnerships and domestic/foreign partnerships.
5. Existence of offshore manufacturing and physical proximity to major markets
- China is the manufacturing plant of the world providing sound base for outsourcing strengthened by risk mitigation and greater stability.
- Also, China sits next to Japan, world’s second largest economy, and shares cultural and historical background with it. Therefore an increasing familiarity and economic integration is visible between the two countries.
Thus one can conclude the growing economic fabric of China will create a vibrant outsourcing environment making it your next IT source location.