More USA Services Outsourced To China

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By Dzhingarov

It is quite obvious that China’s talent pool, infrastructure and size indicate a really promising future for the Chinese outsourcing trend. We can say that numbers clearly speak for themselves. At the moment there are around $44 billion that are moved towards China through outsourcing. However, India is still ahead, a market leader when referring to USA outsourced services.

china outsourcing

The big difference between India and China when it comes to USA services that are outsourced is that the actually manufacturing processes are favored to export to China. To put it as simple as possible, if you need to manufacture anything, having a company in China will drastically reduce your associated costs. That is why there is a huge growth of USA services outsourced to China like manufacturing parts when call centers are usually associated to India.

One thing that is quite interesting is that basically the entire Chinese outsourcing industry is evolving at the same time. This includes BPO, ITO and KPO. China’s intellectual firepower is quickly increasing and the intelligence that is brought forth basically drives companies to offer outsourcing services, especially to really strong economies like that of the USA.

USA services are also outsourced to China due to the fact that there is a possibility to outsource to cities that are varied. You are not faced with just a few opportunities as in other countries, where you just have access to a few cities where you can actually outsource services. Also, the competition between the local companies is huge. USA companies can easily outsource to China and choose multiple suppliers, which is not really possible in other countries. This is quite important because it will reduce dependence on just one supplier or location.

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China’s political leadership currently supports the outsourcing sector, which is definitely something that the US companies appreciate. We have access to 24 specially designated outsourcing cities and way over 10,000 providers in the country.

Till now China mainly serviced the Japanese and Korean markets, mainly because of the geographical proximity and the similar time zones. However, at the moment we are faced with a clear increase as many Chinese gain language skills and much more.