[photopress:it_business_process_outsourcing.gif,full,alignright]First let us define our terms. IT-BPO is Information Technology Business Process Outsourcing. It is basically a software, not a hardware concept.
China is very strong in hardware; less strong in software. This last, according to a report released by Indian famous IT chamber of commerce NASSCOM in New Delhi, is a massive area of opportunity.
The reports says that with substantial domestic market potential, a sizable educated workforce and strong government emphasis on developing the sector, China will become a major player in IT-BPO industry. Not ‘should’. Will.
The report has the snappy yet informative title: Tracing China’s IT Software Services Industry Evolution. It shows that NASSCOM considers China as an alternate market, competitive destination and/or potential partner for India.
IT software and services is a fledging sector of the Chinese economy, estimated at $12.2 billion in terms of revenue in 2006. And, according to the report, the domestic market accounts for over 86% of the total IT software and service revenues.
However, the total value of IT software and services exported from China was estimated at $1.8 billion in 2006, a growth of 41% over the previous year. And Japan and South Korea are the largest export markets for Chinese IT software and services.
NASSCOM Vice President Ameet Nivsarkar said, ‘Presently the Chinese IT market is hugely skewed towards IT hardware which is 90% of the total market size. The IT software and services sector accounts for just about 0.5% of China’s gross domestic product in 2006.’
Source: People’s Daily Online
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