China’s key position in global service delivery
China’s ambitions as a business center appear to know no bounds, and with ongoing drive and investment we don’t expect growth in the world’s most populous country to slow down soon. Not only has China made enormous economic and technological strides in the past ten years, but it has also weathered the recent global financial crisis with remarkable resilience, cementing its role as both a driver of global economic growth and a resource base for low-cost delivery centers. This report, based on recent visits to the region and ongoing discussions with IT vendors and enterprise clients, aims to highlight the key trends that are shaping China’s role within the world of IT service delivery and why engagement with China cannot be ignored.
Executive summary
In a nutshell
Key messages
Investment in China is now a key strategic imperative
Investment shows no signs of slowing down
China’s strength grows with expansion of its skills base
Aiming to be part of ‘super-powered’ economy
Recommendations for players
How to succeed in the Chinese IT market
Focus on diversification of risk
Talent access and management must be front and center
Ignore China and the ‘Asian century’ at your peril
Clients are demanding presence and access
Concerns around IP
Coordinating agency
Important market factors
Continual investment growth
The drive to create a services-based economy
The Chinese skills base
Access to a low-cost, growing and educated workforce
Language skills
Education
Desire and motivation
‘The place to be’
Talent management
Global delivery networks
China is becoming a key hub in organizational global delivery networks
Risk mitigation
Looking to be part of a ‘super-powered’ economy
Size and scale equals power
Local and global player consolidation
Buyer concerns
In a nutshell
Key messages
Investment in China is now a key strategic imperative
Investment shows no signs of slowing down
China’s strength grows with expansion of its skills base
Aiming to be part of ‘super-powered’ economy
Recommendations for players
How to succeed in the Chinese IT market
Focus on diversification of risk
Talent access and management must be front and center
Ignore China and the ‘Asian century’ at your peril
Clients are demanding presence and access
Concerns around IP
Coordinating agency
Important market factors
Continual investment growth
The drive to create a services-based economy
The Chinese skills base
Access to a low-cost, growing and educated workforce
Language skills
Education
Desire and motivation
‘The place to be’
Talent management
Global delivery networks
China is becoming a key hub in organizational global delivery networks
Risk mitigation
Looking to be part of a ‘super-powered’ economy
Size and scale equals power
Local and global player consolidation
Buyer concerns
LIST OF TABLES
Table 1: Global service providers with a China presence
Table 1: Global service providers with a China presence
LIST OF FIGURES
Figure 1: IT services spend in China
Figure 2: Map of China’s 20 selected outsourcing locations
Figure 3: Foreign direct investment in China
Figure 4: Comparison of offshore locations
Figure 5: Biggest challenges of Chinese workforce
Figure 6: Sourcing location stability comparison
Figure 7: International buyer concerns
Figure 1: IT services spend in China
Figure 2: Map of China’s 20 selected outsourcing locations
Figure 3: Foreign direct investment in China
Figure 4: Comparison of offshore locations
Figure 5: Biggest challenges of Chinese workforce
Figure 6: Sourcing location stability comparison
Figure 7: International buyer concerns
