As pointed out by AMR: “Offshore Outsourcing Isn’t Just India,” their recommendation is categorical: Companies with offshore experience should mitigate offshore outsourcing risk by moving beyond India. This strategy mitigates an overheated labor market in India is driving costs up and increasing attrition; other markets may offer a better cultural fit; and provide an hedge against geo-political risk, and AMR believe now is the time to establish relationships with an emerging market.

Global sourcing is seen as necessary to be competitive or even survive. Against this background, a significant number of countries are vying to get a piece of the global pie. These countries, with varying skills and capabilities and populations are the fourth ingredient in the battle for global delivery model supremacy.

It is also against this back drop that China is beginning to satisfy part of the global demand. Already many MNCs are establishing themselves in China and captive centers are also appearing. The application of major strategic initiatives underway to attract more offshore business will have an undoubted effect on the global balance of supply and demand in the outsourcing marketplace.

China will be:
Destination for Asian economies, such as Japan for offshoring;
Will become attractive over the next 5 to 10 years in IT;
Will become India’s major competitor for outsourcing services.
Will spur new growth and investment future high-tech labor force.
Its market opportunities will continue to grow.
Will continue to expand R&D and focus on high-end offshoring.