The business process outsourcing industry in China including IT and other outsourcing services for onshore and export markets surpassed 1 trillion yuan (about $145 billion) in 2016 according to the Ministry of Commerce (MOC).

History

The outsourcing industry grew rapidly in the 2000s in China by beginning from an "embryonic" scale. IDC, an IT industry consultancy, estimated in 2006 that while outsourcing of IT services was growing at 30% annually, the market size was only $586 million at the end of 2005. Most IT services then were offered to domestic companies with offshore clients concentrated in Japan. By 2016, outsourcing was still growing fast at about 20% annually, driven by "cloud computing, big data, Internet of things and mobile Internet" according to

Xinhua Xinhua News Agency (English pronunciation: )J. C. Wells: Longman Pronunciation Dictionary, 3rd ed., for both British and American English, or New China News Agency, is the official state news agency of the People's Republic of China. Xinhua ...

IT services

IT related services accounted for about half of the US$87 billion in total service outsourcing provided to export markets in 2015. The largest IT outsourcing companies based in China include ChinaSoft and

Pactera Pactera Technology International Ltd., () is an IT consulting and outsourcing company with corporate headquarters in Beijing, China, and regional headquarters in North America, Europe, and Asia Pacific. The service areas of the company are ...

. One of the largest China-focused outsourcing companies but based in the US is VXI Global. ChinaSoft is backed by

Huawei Huawei Technologies Co., Ltd. ( ; ) is a Chinese multinational technology corporation headquartered in Shenzhen, Guangdong, China. It designs, develops, produces and sells telecommunications equipment, consumer electronics and various smar ...

was formed in 2012 by the merger of two industry leaders,

VanceInfo VanceInfo (officially VanceInfo Technologies Inc.) is an IT outsourcing company headquartered in Beijing, China. It ranks first among Chinese offshore software development service providers for the North American and European markets as measured b ...

and

HiSoft HiSoft Technology International Limited was a multinational information technology and business process outsourcing company headquartered in Dalian, China. Founded in 1996, HiSoft was listed on the NASDAQ public exchange in 2010. In November 2 ...

. VXI Global was acquired in 2016 by the

Carlyle Group The Carlyle Group is a multinational private equity, alternative asset management and financial services corporation based in the United States with $376 billion of assets under management. It specializes in private equity, real assets, and ...

, a marquee private equity firm, for around US$1 billion. The deal was seen by Dow Jones as "making a big bet that the future of the outsourcing industry, long associated with India, will be in China."

Painting

Art production is outsourced to China either to mass produce thousands of paintings or execute original works based on instructions from foreign artists. A center for art outsourcing is

Dafen Village Dafen () is a suburb of Buji, Longgang, Shenzhen, in the province of Guangdong, China. Since 1989, the area has been an artists' village for the production of replicas of masterworks and outsourcing of original art creation as a specialised ...

Shenzhen Shenzhen (; ; ; ), also historically known as Sham Chun, is a major sub-provincial city and one of the special economic zones of China. The city is located on the east bank of the Pearl River estuary on the central coast of southern province ...

, well known for production of imitations of masterworks, but also home to artists who are commissioned to execute original works. At the high end of the art world, outsourcing to China is practice by

Kehinde Wiley Kehinde Wiley (born February 28, 1977) he returned to Nigeria, leaving Freddie to raise the couple's six children. 3/sup> Wiley has said that his family survived on welfare checks and the limited income earned by his mother's 'thrift store' – ...

, an American portrait painter, who opened a studio in Beijing in 2006. Under Wiley's 4 to 10 helpers do the brushstrokes for his paintings. Cost has been a motivation for outsourcing to China with an art blogger suggesting in 2007 that it allowed those with limited budgets to go from buy posters to oil paintings. Initially, Kehinde Wiley also opened his Beijing studio due to cost sensitivity but by 2012, Wiley told '' New York'' magazine that savings costs was no longer the reason for relying on Beijing based-helpers.

Global competitiveness

China has the world's second largest outsourcing industry, taking up 33% of global market share, according to a news release from the Ministry of Commerce of the People's Republic of China in March 2017. The Business Processing Industry Association of India in March 2017 had concurring figures, assessing that China had second largest outsourcing industry, behind

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

and ahead of the

Philippines The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no), * bik, Republika kan Filipinas * ceb, Republika sa Pilipinas * cbk, República de Filipinas * hil, Republ ...

References

{{Economy of China Industry in China China