China, for BPO?

Traditionally, most global enterprises do not think of China when considering BPO locations but current conditions and investment in the BPO sector are quickly propelling China to be the next big BPO destination. Fuelling the growth is the large scale of the educated workforce, increased interest & investment by the government, BPO specific education, and rising numbers of English educated youth.

Resources

China graduates 6 million students from universities and 8.5 million students from high schools annually. A job in the BPO industry is viewed as much more desirable than a job in the manufacturing sector which for many, especially outside of the large cities is the only alternative. Therefore, retention in the BPO sector in China is not a major issue as it is in India or other parts of the world.

Government Support

In 2009, The General Office of the State Council designated 20 cities in China as official “China BPO Cities” Companies setting up BPO services centres in these cities will be eligible for China BPO Development Incentives which include discounted income and employee taxes, free duty for offshore services income, special working hours permission, training allowance of up to 4500 RMB per employee, infrastructure funds and ISP and telecommunications priority. All of these incentives allow Chinese BPO companies to be extremely cost competitive.

BPO Education

Chinese companies and education institutions have invested in vocational schools and colleges geared specifically to teach BPO skills. Schools such as Beijing Jade Bird Information Technology Training Centre and Shanghai Zhanjiang Institute for Education have been established specifically to train students for the IT and BPO services industry. In addition, the Chinese government has given grants to companies who set up their own feeder colleges. M&Y for example has established one such school in Heilongjiang province which serves as the primary feeder school for our Daqing delivery centre.

English Education

Since 1988 English is a required language in Chinese schools language from the 6th to 12th grades. Therefore, the youth graduating now are more fluent and versed in English than their parent’s generation. In addition, growth of the internet and world-wide media has increased the usage of English in the Chinese youth’s lives. This increase in English fluency, especially written fluency, now allows a breadth of data related services to be delivered from China.