This 2009 client experience survey investigated a subset of over 460 technology and application outsourcing (AO) contracts held by 58 of the top China-centric ITO suppliers. 18 key performance indicators (KPIs) or criteria are employed, specific to infrastructure and AO buyers within the Chinese managed IT services sector, scored on each respective vendor then ranked per KPI.

Key finding: most important customer satisfaction KPIs for clients utilizing China-centric vendors

Trust, innovation, customization and reliability are the most important attributes influencing client satisfaction with their Chinese outsourcing providers.

Key finding: vendor dissatisfaction is uncommon in the China-centric technology area, with the applications development and software testing sectors among top ranked suppliers

Strong dissatisfaction in this geographically-specific ITO sector occurred in 17.5% of first year clients, but only 5.1% of clients beyond their thirteenth month or more of contracted relations. UK clients are among the most satisfied with China-centric outsourcing services delivery, averaging 87.5% in 2009. European clients in countries other than the UK were the next most satisfied group (83.8%) of all geographic locations, matching clients experience with vendor delivery.

Stronger dissatisfaction was more commonly reported from engagements of US clients, at 12.4% from first year contracts. Satisfaction scores increased sharply in US clients beyond their first year of their contract arrangements.

Key finding: comprehensive services vendor arrangements from applications development vendors produce the highest satisfaction rates

Vendors offering comprehensive application services (development, management and maintenance) ranked highest in the overall survey by global clients. ITO clients showed significant preference for vendors capable of offering more extensive applications service lines once satisfied with initial projects.

Source:http://www.officialwire.com/main.php?action=posted_news&rid=45616&catid=1039

The growing outsourcing market in China is not having the effect that the Chinese government had hoped for, according to a new report by Ovum.

The Chinese government has set up 20 cities for outsourcing activities, and made large investments in infrastructure, education, training and tax incentives in an attempt to grow business.

However, Ovum senior analyst Patrick O’Brien explained in a report that the Chinese outsourcing market is being dominated by foreign players, such as BT, setting up their own Chinese subsidiaries.

“The Chinese government is taking measures to build China as a service-based economy, but there are no signs of a Chinese equivalent of a Tata Consultancy Services or an Infosys emerging, capable of challenging the major Western vendors for the foreseeable future,” he said.

“Western providers have invested in Chinese delivery centres having learned their lesson from the procrastination many showed when India emerged, which effectively allowed India’s domestic vendors to build themselves into global players.”

Part of the problem is that, while many Chinese outsourcing companies are state-owned, the Chinese government is not signing deals with them.

Another problem is China’s poor marketing skills in advertising for new market opportunities. This has been made worse by two government departments trying to promote outsourcing: the Ministry of Commerce and the Ministry of Industry and Information Technology.

Source:http://www.v3.co.uk/v3/news/2253906/chinese-outsourcing-market