China lacks offshoring capabilities for Europe

While China is well on the way to establishing itself as an outsourcing hotspot, the country isn't set up for European and Northern American offshoring business just yet, according to new research.

A report by outsourcing consultants Everest rated China — along with India and the Philippines — as a mature offshoring destination, with more than a quarter of businesses surveyed by the company saying they plan to expand their presence in the area over the next two years.

According to Everest, however, most outsourcing work carried out in China is used to support companies' operations in Japan, South Korea and south-east Asia.

"China is a mature offshore services destination, but only for regional support," the report noted. "China still lacks several capabilities that global companies seek for supporting North America and Europe."

For more on this ZDNet UK-selected story, see Is China ready for your outsourcing work? on silicon.com.