Doing Business in China

Though the financial crisis had impacted the world outsourcing market,China outsourcing market still maintained a strong growth.It is expected China outsourcing outpace India in the next five to ten years.

Assistant minister of commerce, said in an industry forum yesterday that the contract value of China's outsourcing industry reached $2.59 billion from January to March, an increase of 25.9 percent compared with the same period last year.

Chinese outsourcing companies, whose major customers are Japanese companies rather than US and European firms."Our software outsourcing business increased 94 percent year on year in the first five months of this year," said Zheng Shiyu, CEO of Dalian Yidatec Co Ltd, one of China's largest outsourcing firms.

China aims to double in five years the export value of the outsourcing industry by 2010. By achieving that, the government announced earlier that it plans to woo some 100 multinationals to transfer part of their service outsourcing industry to China by building 10 cities with international standards.

It also plans to help 1,000 Chinese outsourcing companies grow into medium to large size enterprises within the five-year period ending 2010.

As more US and European companies are starting to outsource their business to Chinese firms, China is expected outpace India in outsourcing in the next five to ten years.