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China's cheaper cities prime for IT outsourcers

Stephanie Overby | Dec. 8, 2011
CIOs looking for lower costs, specific language skills or local support should consider these five up-and-coming outsourcing cities in China.

Hangzhou The capital and industrial heart of is a low-cost alternative for medium to small-scale global delivery, but does not offer any distinct regional advantage.

Number of global service providers: 3 to 4 Typical delivery center size: 300-400 Operation cost per FTE: $29,000-$31,000 Major players: Tata Consultancy Services, Infosys, CapGemini Language capabilities: Small pool for regional languages; low to moderate English skills Annual IT graduates: 38,000-40,000

Suzhou This relatively new entrant in the services space offers some advantages due to its proximity to Shanghai (and its labor pool), but currently has no large scale IT or BPO operations.

Number of global service providers: 3 to 4 Typical delivery center size: 250-300 Operation cost per FTE: $29,000-$31,000 Major players: CapGemini, Genpact, Black and Decker Language capabilities: Mandarin is the primary spoken language; Japanese skills available for small to medium scale non-voice work; low to moderate English skills Annual IT graduates: 19,000-21,000

 

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