May 07 2006
China IT Outsourcing
Read this article about IT/BPO outsourcing to China.
Some quotes, data, info:
The Xian High-Tech Industries Development Zone will eventually span 90 square kilometres at a cost of 100 billion yuan ($12 billion).
($12B! Are you sure??)
The market for BPO, …, should be worth another $24 billion by next year,
China …has just $2 billion of the outsourced-services market, What activity there is happens mostly in Dalian,
India used to be cheaper, but salaries for graduates, engineers and programmers have been climbing fast and staff turnover at IT companies can reach 30-40% a year. China, where an entry-level BPO staffer is paid around $300 a month, … chief executive of SAP, one of the world’s biggest software companies, gave warning in January that India was becoming too expensive … China’s big coastal cities are getting more expensive, but prices inland remain keen. Foreign firms are looking beyond Xian at cities such as Chengdu and Wuhan.
Tata Consultancy Services (TCS), Infosys and Wipro (all have operations in China) … Yet China is still five to ten years behind India, say most observers.
Theoretically yes, in practice no: lack of vocational training and few links between business and academia … foreign companies in China are spending a small fortune “subsidising China’s education system”