China Source: Outsourcing Overseas

Throughout the world, there are a number of candidate countries that have a potential for outsourcing. There are many advantages that make China a dominating outsourcing state, some of which are explained below:

Firm and established economy: The economical stability of China is an important point to consider for the successful China source. Apart from the many ups and downs at the political front in the country, business is not that much affected.

Lowest rates of labor: China is a country where you will find two kinds of labor and rates fixed to them. In the native Chinese companies, the labor rates lie between $80 per month to $150 per month for blue collar workers and white collar engineers respectively. Hiring the labor directly from China cost you much more than in the second case, if the company is foreign. The labor rates increase to $400, from which the labor are paid just $80 to $150 and the rest of the amount slips back to the Government. Joint Ventures possessed by foreign firms for outsourcing offer the best of the salary and positions, which are greatly in demand.

Well expanded industrial foundation: China is established as a self-sufficient industrial state. According to Western notions, China has a well established industrial base and that is the major reason for the success of China source business throughout the world.

Abundance of the native raw materials: China owns most of the raw materials that are required for outsourcing business. It has large reserves of indigenous products and natural resources, such as natural rubber, aluminium and steel. Still, China is the main importer of iron, copper and steel because of its extensive expansion of the economy and large population.

Aerospace and Defense Industries: Various regions in China like Chengdu and Dalian are particularly developed to meet the militarily needs of the country. These industries greatly affect the China source outsourcing.

Strong Telecommunication and Transportation Infrastructure: Telecommunication was a concern for some time, but at present communication services in China, especially between North America and China, are very reliable as well as cheap. Transportation infrastructure is also quite developed, especially in the coastal regions. However, there are some problems in transportation in the inland regions but they don’t make much impact.