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Outsourcing of services’ revenue may double in 2015
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China’s outsourcing industry for services may nearly double its revenue in the next three years amid rising domestic demand and government support, a KPMG report said.
By the end of last year, the industry’s totaled US$46.5 billion and is expected to hit US$85 billion in 2015, KPMG said yesterday.
“China continues to aggressively position itself as a top shared services and outsourcing destination and is making an effort to industrialize this sector.’’ said Egidio Zarrella, partner, clients and innovation consulting, KPMG China. “This has created a strong, domestically focused industry as well as an increasingly viable global and regional hub.”
He said that China’s supply and demand for outsourcing services may jump as the country may invest 154 billion yuan (US$25 billion) in cloud infrastructure.
China is seen as a market and a base for emerging service providers, offering opportunities to meet outsourcing demand by delivering business and IT services across domestic and global markets, the report said.
In 2012, Chinese service providers signed 144,636 outsourcing contracts worth US$61.3 billion, up 37 percent from 2011, data from the Ministry of Commerce showed.
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