Of the many near-shore and offshore alternatives, China has the unlimited potential. This was recognized by the Chinese Government five years ago - “Facing the fast growing outsourcing market, China is no longer satisfied being “the center of world manufacturing,” it also wants to a big share of the outsourcing pie. We should pay emphasis on the trend of multinational companies outsourcing its internal services, actively creating the situations, discussing the new methods and expanding into new ways of attracting the foreign investment.” The vice Premier Wu Yi stressed in the Forum of Multinational Companies Investment in China on July 15, 2003.

According to IDC’s latest report China Offshore Software Development 2008-2012 Forecast and Analysis (Doc# CN221101Q), the offshore market has grown both in size and sophistication in recent years. China’s offshore software development market reached $1.9 billion USD in 2007, growing 42.4% over 2006 in terms of the current exchange rate between renminbi and the U.S. dollar. IDC expects that the revenue will increase to $8.9 billion by 2012, with a five-year compound annual growth rate (CAGR) of 35.3%.

While AT Kearney placed China in number second place after India in their Global Attractiveness Index, there are issues to be addressed to gain the “number one position”.

To accelerate China’s offshore market where overseas customers are increasingly willing to outsource Application Development, Managed Service requirements and Business Process Outsourcing to China, It is China’s Central Government, Regional Governments, and Outsource Suppliers goal to be the top outsourcing destination for international Technology and Business Process Outsourcing (including the high value added elements of outsourcing for example, customer interaction centers, research and development, etc)