Offshoring IT operations in the PRC

A number of options exist in this rapidly growing area says Nancy Leigh of law firm Baker & McKenzie.

Introduction

With large numbers of well-qualified potential employees, low labour costs and rapidly developing infrastructure, the People's Republic of China PRC is becoming an increasingly competitive location for offshoring operations. This article looks at the offshoring in China of IT enabled services such as call centres and business process services, and general IT services including application development, support and maintenance services.

As discussed below, there are a number of possible structures under which the offshoring of such services can be carried out in the PRC. These include outsourcing to a third party service provider establishment of a captive operation or a joint venture with a Chinese...

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