China's BPO sector grows 34% in '03

BEIJING: China's technology outsourcing market grew 34.2 percent in 2003, faster than the rest of the Asia-Pacific region, said computer maker Hewlett-Packard Co.

The country's technology outsourcing market was estimated to be worth $318 million last year, Hewlett-Packard (HP) said in a statement quoting research firm IDC.

It did not say whether the Asia-Pacific information included outsourcing heavyweight India, whose army of computer programmers has spooked U.S. labour groups fearful of losing American jobs.

China's outsourcing market accounted for 8.5 percent of the overall information technology services market, and was projected to have a compound annual growth rate of 44.2 percent a year, it said.

"We see a lot of potential in this market, especially (in the) financial and high-tech manufacturing industry," William Poon, general manager of HP China's managed services division, said in the statement.

"Outsourcing will eventually become an effective way for Chinese enterprises to enhance their core competitiveness and lower operational costs," Poon said.

HP said most of its outsourcing clients in China were multinational firms, but domestic firms were also showing interest in farming out work.

Chinese outsourcing firms have started to bill themselves as alternatives to Indian giants such as Wipro, Infosys Technologies and Tata Consultancy Services. They say they can offer even lower rates.

© Reuters