Chinas Emerging Role in Global Outsourcing

Gist of the presentation

Overview Trends in the global sourcing Strengths Value chain and Supply chain (Put your part)

Overview of the Case study

Economy of China Position in the outsourcing market Changes took place

Trends in Global Sourcing Strategy

New competitive environment caused by excess world wide capacity. Innovation in and restructuring of the international trade infrastructure. Trend toward global manufacturing.

CHINAS STRENGTH
FAVORABLE POLICIES :- China has emphasized the development as a complement to the nation strong hold. INFRASTRUCTURE :- No country in the world has invested as much in infrastructure. TECHNICAL SKILLS :- China has vast pool of hard working skilled technician and engineers. LANGUAGE :- China has recognized the need of good English Language skills. PRICING:- China compares favorably in term of wages level.

Moving up the value chain

Earlier Chinese outsourcing pioneer in lowend projects such as localization and software testing. Today ,Chinese providers work with companies around the world. Quality improvement in skills have been steady. Advanced in offering specific business knowledge.

CHINA SOFT
In January 2000, established ChinaSoft International Ltd . Best known for providing outsourcing. China Soft International Ltd . Made six acquisition between 2003 & 2007. Three pronged business model :- Fanny Chan (CEO)
Domestic consulting Global outsourcing Training

Challenges

Language Capability Intellectual Property Right Information security and data privacy Experience in delivering of large contracts Location difference Political influence Quality of technology and graduate talent Costs, Currency fluctuation and Inflation Cultural Difference Remote service delivery Labor laws Market fragmentation

Competition & Collaboration with India

Indian companies like Infosys, Wipro and Tata are rapidly establishing footprints in china. Collaboration include sharing human resources and natural resources China focusing on its strength in hardware and India on software

TCS
In 2002, TCS became first Indian software company to establish wholly owned foreign enterprise in China In 2007, JV with the Chinese governments National Development and Reforms Commission and Microsoft Corp. Today, TCS has 65% stake, Chinese Govt holds 25% followed by 10% stake of Microsoft Corp.

TCS considers its main advantages to be size and scale, global and regional reach, and International quality standards

Conclusion
Chinese government focusing on key investment in technology, education and infrastructure China has emerged as favorable destination for information technology and business process outsourcing China has moved up the IT value chain by serving companies variety of global markets including Japan, Korea and United States China has positioned itself as a key location for consideration, by enhancing skill availability, making focused investments, addressing IPR concerns and highlighting success stories All of these factors combine to make the China outsourcing market an interesting place to watch