Trends Report

Lessons Learned From Outsourcing In China: Part 2

Local Vendors Are Ready to Be On MNCs' Radar

February 7th, 2013
Gene Cao, null
Gene Cao
With contributors:
Frederic Giron , Michael Barnes , Rita Xia

Summary

This report follows up on an outsourcing services market report published in Q3 2012 that outlined key lessons for multinational corporations (MNCs) seeking to leverage outsourcing engagements in China. To date, MNCs have mostly leveraged infrastructure outsourcing services in China from global providers. However, we are increasingly seeing MNCs diversifying their approaches to include more sophisticated multiprovider outsourcing models in which they also try to leverage local Chinese providers. Recently, we have seen MNCs facing greater challenges as they outsource their IT systems to mainland China; these challenges are leading them to consider working with local providers more frequently. In this report, Forrester introduces the main service capabilities of local vendors by service model and profiles the different types of service providers in China to help sourcing and vendor management (SVM) professionals at MNCs select the right local outsourcing suppliers.

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