According to an official from the Department of Foreign Investment Administration of the Ministry of Commerce, amid the global financial crisis large foreign enterprises have put more emphasis on cutting down operating costs through outsourcing their non-core businesses. This offers China's outsourcing service enterprises a rare opportunity for development. In addition, the state has formulated a series of preferential policies in terms of taxation and funds, which strongly promote the development of outsourcing service enterprises.
Experts believe that the global financial crisis has caused enterprises to put emphasis on increasing labor productivity, improving efficiency and cutting down costs. Against such a backdrop, countries with relatively low labor costs like China will obtain more business opportunities.
At the same time, many enterprises have substantially reduced funds allocated for research and development and instead they expect to develop international and Chinese markets through collaborations with Chinese counterparts in the field. This will take cooperation between Chinese enterprises and overseas service providers to a higher level, and it will bring development opportunities to Chinese enterprises in high-end areas such as research and development.
According to a report recently released by the China Service Outsourcing Research Center, global service outsourcing companies have mainly had two trends when choosing their service outsourcing countries. One trend adopted by the US is to choose long-distance off-shore service outsourcing countries or regions with low labor costs and abundant human resources such as India, China and the Philippines. The other trend adopted by Europe and Japan is to choose near-shore service outsourcing countries or regions with similar cultures. For example, 40 percent of Japan's outsourced business is handled in China.
By People's Daily Online
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