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Monday, February 13, 2006

BPO: Why Outsourcing to China?

CHINA Key Cities: Beijing, Guangzhou, Shanghai

Labor Pool: China's technical schools turn out 50,000 graduates annually, many of whom migrate west. Those who stay generally don't speak English.

Costs: IT salaries range from $3,000 to $8,000 annually. No real BPO competency.

Government: China's government has hampered growth due to trade policies and overregulation; intellectual property concerns linger. The hope is that these issues will evaporate as China blends into the World Trade Organization.

Infrastructure: Infrastructure can be spotty outside major cities, but China is building networks, particularly telecommunications, almost as fast as the U.S.

Expertise: Transaction processing, low-end software development and maintenance.

Major U.S. Customers: HSBC, Microsoft.

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