It is evident that hearsays don’t stop business owners from outsourcing to China. In fact, industry analyst firm Everest Group said China’s business process outsourcing (BPO) industry has grown almost three times from $1.2 billion in 2007 to $3.5 billion in 2010. More than half (65 percent) of it came from IT outsourcing.
Everest added that outsourcing in China will continue to flourish. The country’s BPO market could hit the $10 billion mark by 2015 and may well become an ideal offshore ITO service provider in the near future.
China’s already large workforce (5.8 million in 2010) has been reinforced with engineering and management graduates. However, signing contracts with BPO companies in China is harder than with their counterparts in India and the Philippines. Everest likewise stated that China doesn’t offer a clear advantage like the other two - higher labor costs and lack of enough workers with English communication skills in the country are seen as drawbacks by investors.
On the other hand, companies see China as a great way to tap emerging markets in Japan, Hong Kong, and Korea.