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China has advanced to be one of the world’s leading outsourcing nations — expanding as more than a manufacturing hub to catering in outsourcing opportunities across other capacities – such as business process and IT outsourcing.
As the most populated country in the world, China presents a unique opportunity to foreign companies to increase their access to a vast pool of talent, skills, services, and entry into neighbouring markets. Not only can this cut costs and maximise profits but improve the overall efficiency in business operations – ultimately setting them apart within their internal markets.
This article will highlight China as an outsourcing destination and discuss the top benefits and disadvantages companies need to consider when choosing to outsource to China in any capacity.
What is the definition of outsourcing?
In business terms, the practice of outsourcing is when a company looks to hire a third-party to perform duties, create goods, support operations, or provide a service to the company. Some examples of a third-party source is an individual with specialised skills (think consulting), an entire department (IT, HR, legal or accounting), a software solution (SaaS or PaaS), or a specific service (data entry, content creation, marketing etc.). Companies choose to outsource to lower costs and improve efficiencies and gain a strategic competitive advantage. A company can outsource onshore, offshore or to neighbouring countries.
What types of business activity can be outsourced to China?
China is constantly expanding its aptitude for outsourcing opportunities in business processing, manufacturing, and IT outsourcing. Below will be a brief rundown for each of these categories and highlight some common business activities associated with each that can be outsourced to China.
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