Business process outsourcing in China
From Wikipedia, the free encyclopedia
The business process outsourcing industry in China including IT and other outsourcing services for onshore and export markets surpassed 1 trillion yuan (about $145 billion) in 2016 according to the Ministry of Commerce (MOC).[1]
The outsourcing industry grew rapidly in the 2000s in China by beginning from an "embryonic" scale.[2] IDC, an IT industry consultancy, estimated in 2006 that while outsourcing of IT services was growing at 30% annually, the market size was only $586 million at the end of 2005.[2] Most IT services then were offered to domestic companies with offshore clients concentrated in Japan.[2]
By 2016, outsourcing was still growing fast at about 20% annually, driven by "cloud computing, big data, Internet of things and mobile Internet" according to Xinhua.[1]
IT services
IT related services accounted for about half of the US$87 billion in total service outsourcing provided to export markets in 2015.[3]
The largest IT outsourcing companies based in China include ChinaSoft and Pactera. One of the largest China-focused outsourcing companies but based in the US is VXI Global. ChinaSoft is backed by Huawei. Pactera was formed in 2012 by the merger of two industry leaders, VanceInfo and HiSoft.[4][5] VXI Global was acquired in 2016 by the Carlyle Group, a marquee private equity firm, for around US$1 billion. The deal was seen by Dow Jones as "making a big bet that the future of the outsourcing industry, long associated with India, will be in China."[6]
