China Is Outsourcing’s Next Great Frontier. Is Your Company Ready To Explore? |
(DALLAS, Texas) August 19, 2010 - According to Alsbridge CEO Ben Trowbridge, China is the next great outsourcing power.
"When a market triples in two years, and then is expected to double again in four years, that is stratospheric growth and the enterprise needs to sit up and take notice," says Alsbridge CEO Ben Trowbridge.
In a recent article authored by Alsbridge executives, the company noted that a recent industry study predicted explosive growth in China's IT outsourcing market. In the report, it stated that China would be worth more than $42 billion in 2014. In 2009 that same marketplace was estimated at $20 billion.
Meanwhile, the news media continue to buzz about the faceoff between India and China. But Trowbridge says the outsourcing duel between these two giants is not necessarily the big news; rather, it is how China is fueling the shift of power.
"China's aspiration in the IT outsourcing market is not to become the next India, Singapore, or Japan; China is crafting her own brand based on domestic priorities, and a long-term vision for the future. Outsourcing advisory firms like Alsbridge are watching this evolution very closely so that we can help the enterprise adjust accordingly," Trowbridge adds.
What China Means for the Enterprise
As the China IT Outsourcing market continues to grow and mature, additional value added services will be in high demand. Companies will also require support in the form of third-party benchmarking.
Trowbridge reports that his business unit, ProBenchmark, has already been contacted by a Shanghai-based unit of a multinational mass retailer. And he explains that advisory services are not far behind either. One of the largest advisory services firms co-hosted the China Sourcing Summit in Hangzhou (about 180 km west of Shanghai) this past June, offering more evidence that momentum continues to build.
"It may seem to the rest of the world that this market just appeared overnight; however, if you're one of the early adopters who went to China in the early 1990's, you know it's been a long time coming," Trowbridge explains.
So what was the catalyst that sparked this explosion?
Much credit is given to China's (11th) 5-Year Plan, a National Initiative called "Thousand, Hundred, Ten." The plan began as a call to action back in 2007, to develop 10 "base cities" into world-class centers for services outsourcing, to promote one hundred multinational services outsourcing firms to transfer their delivery capabilities into China, and to cultivate a business climate to foster a thousand large and medium sized outsourcing enterprises in China to compete globally.
"Clearly, they are working the plan and the plan is working," Trowbridge says. For customers contemplating off-shoring non-core functions, or looking at renewal options on existing contracts, China will need to be part of the consideration set."
About Alsbridge
Alsbridge, Inc. is an award-winning global advisory firm that has redefined the way companies reduce costs and improve back office operations. Our proprietary benchmarking tools and data resources enable clients to utilize the most cost effective and value added sources globally for information technology, business processes and telecommunications networks. Through a combination of internal optimization and outsourcing, our clients achieve cost savings that support their strategic business objectives. Founded in 2003, Alsbridge is the proven, effective difference. The company's web site is: www.alsbridge.com |
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