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DevottUnique Development Track for China's Service Outsourcing Industry
Date : 2009-11-12    Hit : 444

When Chinas manufacturing industry has been hit by the declining export demand caused by the global economic crisis, its service outsourcing industry also finished the fast industrial expansion in 2008. Facing the global industry downturn, Chinas service outsourcing industry is at a crossroads for further development.

 

According to Devotts researches, one of the key points for Indias success in outsourcing industry is that India found out a unique position in the market at the time­--cost. The second point is opportunity, Therefore, the Indian success model is "cost and opportunity", with a certain degree of uniqueness and non-reproducibility. While the outsourcing industry has undergone profound changes, to realize a remarkable development, China should find out its own brand-new sustainable development track on the basis of Indian experience.

 

Devotts industry study shows that cost-based "outsourcing 1.0" industry is upgrading to the "Outsourcing 2.0" based on technology and talent. China should abandon the Indian model and seize the global service industry shift trend, first "set basis on domestic demand", give first place to independent innovation targeted at the huge potential information-based domestic market. On the basis of which, strive to develop the outsourcing of human resources and seek a higher-level development path, the "Market and Talent" driven model.

 

The huge local market is the unique advantage for Chinas service outsourcing industry.

 

The biggest difference between China and India is that the Indian outsourcing industry is export-oriented which relies on the international environment; while China owns a huge domestic market and strong manufacturing basis, thus the domestic market is Chinas biggest core advantage.

 

The huge domestic market and the obvious dominant industry will drive the development of service outsourcing. Therefore, the rapid economic development of China brings a unique and matchless advantage to Chinas service outsourcing industry of double demands from both "onshore outsourcing" and "offshore outsourcing".

 

Human resources outsourcing is the industrial path for "outsourcing 2.0".

 

Modern outsourcing does not only for lower cost, but also for higher technology and human resources outsourcing, namely, "2.0 times of service outsourcing."

 

 "Outsourcing 2.0" has two important elements. The first one is technology outsourcing. Although China also has its own advantages in technology, it has to face the competition from Indian large-scale outsourcing enterprises. Thus we say that the technology outsourcing cannot become Chinas unique advantage and path.

 

The second one is human resources outsourcing. China has obvious advantages in HR quantity and quality. Chinas low-cost and technical personnel is the other major advantage for its service outsourcing industry.

 

Therefore, the development of Indian service outsourcing industry relies on opportunity, while China turns to a precise industry development strategy and plan. As long as the entire industry can base on Chinas own advantages and the domestic market, taking "talent outsourcing" as the core, to construct the unique industrial positioning and the development path for Chinas service outsourcing industry, China would finally grow into the No.1 outsourcing destination in the world!

 

For more please visit:

http://www.chnsourcing.com.cn/research/200910/292903.html

 

Devott