Why China?

1. Liberalization of laws and government support.
Prior to and after join the World Trade Organization (WTO), China leaders have accelerated the liberalization of its economy. The country is now passing laws that protect private ownership and intellectual property, a crucial step for outsourcing to take hold. Further, it embraces public/private partnerships and domestic/foreign partnerships.

2. Investment in technical education.
Chinese leaders noticed the importance of technical education in India and have begun to make a serious investment in higher learning academies to train the kind of people outsourcing service providers employ. To speed the educational process in other areas, the Chinese have created "radio and television" universities in addition to the traditional schools to meet the huge demand.

3. Large supply of low cost labor.
China has over a billion people, including many in densely populated megapolises, willing to work for comparatively low wages; in other words, low cost labor provides a pure labor arbitrage opportunity for many advanced economies. Thus, China has one of the key ingredients to compete with India as an offshore provider. 4. Offshore manufacturing already there. China is the manufacturing plant of the world; the "made in China" label seems ubiquitous. China slowly has been developing ancillary services to support its large manufacturing base. From an ex-pat viewpoint, the support services are already there to support outsourcing.

From Everest Group, By Todd Furniss