IDC consulting in one of its reports states that China gets more than 60% of its outsourcing business from countries like Japan and Korea. Why is it so? Because, these countries had been historically interdependent for years, they also have similar cultural and linguistic traits. They also share similar physical characters. Truly, in recent years when everyone was looking at US and Europe for outsourcing and IT contracts China has strategically developed new age business relationship banking on those variables that I have mentioned above. Remaining 40% comes from the US and UK markets. 
Add to that, some mandatory investment from US and European firms which comes to country’s way for the Beijing Olympics 2008. Specially the system integration software market. Only time will tell how China will fare in the BPO and IT outsourcing space as far as contracts from US and Europe are concerned. Remember North American and European markets account for more than 75 per cent of the world’s $320 billion IT service and outsourcing market. Can China afford to miss it?
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