In the past five to seven years, China has been moving away from a traditional manufacturing economy to a service-based one in response to the domestic demand for IT services. Also, the government has been a key driver of this new outsourcing model.
When it comes to outsourcing destinations, The Everest Group Report on “Offshore Locations 2012 to 2014”reveals that China placed two as the preferred outsourcing location with India in the top spot. This is something Freeborders has witnessed first-hand working within the country.
So outsourcing decisions moving forward won’t be a simple choice between two countries, but a multi-location strategy and approach that offers geographic risk diversification with innovation.