China’s service outsourcing industry takes center stage

china service outsourcing industry

China has always been a favorite destination for business outsourcing operations owing to its large pool of human resources and the cheap labor it offers. The largest populated country in the world is teeming with a wealth of talent that has emerged mainly due to the burgeoning prospects in the BPO sector. In the offshoring scenario, it is now the turn of China’s service outsourcing industry to create its mark in the business world.

The Chinese BPO sector has made its presence felt with its unparalleled cost efficiency and speed. Over the last two years, China’s service outsourcing industry has gone through a phase of tremendous growth. During this period, there was an increase in the number of BPO companies from a figure of 12,706 in the year 2010 to an exponential increase of 16,939 in 2011. In addition, there was an increase in the value of the total outsourcing service by 65% compared to the figures in 2010. In 2011, the value rose to $23.8 billion.

In the face of a weak global economy, many western companies had transferred their services to China owing to its low costs of production and labor. Primary sectors that have been the major focus of service outsourcing include health care, manufacturing, and finance. China’s service outsourcing industry covers the whole gamut of operations in the BPO sector together with ITO and KPO. Major players like IBM and Convergys have already carved out a niche for themselves in this land of the dragon.

Funding from the government uplifts the BPO sector

The Chinese government has been on the forefront to provide support to this booming industry. The Chinese Ministry of Commerce (MOC) and Ministry of Finance (MOF) recently released a circular, according to which, the government will provide retrospective funding as a means of supporting the organizations that had offered BPO services to foreign clients. The period of service has been fixed between 1 July, 2012 and 31 March, 2013.

Subsequently, many local service providers have emerged as key players in the global scenario. China’s service outsourcing industry now boasts of an indigenous band of companies such as Bleum, Neusoft, and Dextrys. The global economic scenario and support from home have all worked in the favor of these companies. The funding from the government which had started in 2008 aims at building platforms of public service by bringing up model cities, training of workers for the BPO sector, attaining international accreditations for outsourcing companies, and training services from reputed institutions to employees from these firms.

China’s service outsourcing industry is set to take a giant leap from its humble origins towards a large frontier of countless opportunities. The future holds bright prospects for this BPO sector as more accomplishments are being recorded in this field.




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