China so far, has been mainly focusing on hardware development and manufacturing. But, this trend is changing. The government, clients and suppliers are currently discovering and developing China as next outsourcing heaven.

Expert Cyrill Eltschinger says, “China’s rates can undercut India’s rates by 30% average, in many cases even higher. Most Asian-Pacific headquarters across industries are currently relocating to China from places like Singapore, Hong Kong and Australia.” This move will further spark the Chinese outsourcing industry. China has already started focusing on providing outsourcing services to markets in Asia and the Pacific, especially Japan.

Chinese firms will be creating major new market opportunities in the next few years by strategically acquiring business outsourcing companies.

The expert, Lionel Carrasco notes, “China will definitely be a great provider of low-cost labor. Chinese government system can and will mandate thousands of various skills and produce trained brains as cookies. The challenge for China’s growth will be business domain expertise and huge language and cultural barriers. India has the British heritage and China has the Great Wall of China that remains conceptually.”

In the next 10 to 20 years, China will continue to invest significantly in the development of world-class technology outsourcing centers with international satellite offices in Singapore, Russia and the U.S.

If political transition matches economic performance, then China’s economy is poised to become the world’s largest in purchasing power parity.