As a result of over a decade of liberalization of trade and many innovations, China has achieved a significant commercial presence on the world stage which has been heightened by accession to the WTO. Today China has positioned itself as the world’s manufacturing center. Across countless industries and sectors it is dominating supply chains. It is now poised to become a world player of the IT and BPO sectors, and the term “China Price” may be as common in the technology and business process outsourcing arena as it is for commodity, automotive, engineering and other goods sought by procurement managers each and every day.

China’s growing role in global business process transformation and how this worldwide trend will influence the development and implementation of business processing strategies in the country.

The role of multinational BPO providers:
Foreign BPO companies, are pushing to involve China in global business process strategies. The world’s largest BPO providers are diving in. BPO providers from around the world are establishing a presence in the country in order to take advantage of low wages and reliable IT networks, as well as to diversify their risks. In particular, Companies based in India are major players in this trend.

China’s significance is set to increase rapidly:
Business process strategies will increasingly gain popularity. Once companies establish the means to carry out business processing for these local operations, they may consolidate their business processing in China in order to benefit from the huge economies of scale available in the country.

International competition drives business process transformation in China:
The development of China’s market for BPO has been driven largely by multinational providers. These companies have set up facilities in China in order to combine international operating standards with local advantages-including reliable IT infrastructure and low wages. China’s proximity and cultural similarities to nearby Asian markets have also been significant attractions.

China offers huge growth potential:
Business process transformation strategies in China will be driven primarily by the need to respond to rapid market growth. The need to reduce the unit cost of business process that drives BPO is like that of more developed markets. Instead, the need for faster services and capacity will lead many of them to outsource.

Just a few years ago BPO offshoring services were nonexistent in China, according to the results of the Economist Intelligence Unit’s global survey of 300 senior executives of financial services companies.