Proceed With Caution When Considering Large-Scale ADM Outsourcing in China

China is considered an emerging market for offshore outsourcing services, including Applications Development and Maintenance (ADM), by many clients and industry analysts. From a strategic vantage point, China can seem attractive because of its rapidly growing domestic market, large population base, good governmental support for the ADM sector and a reasonably good educational system.

However, in ISG's opinion, clients should be cautious about outsourcing large-scale ADM engagements to China in the short- to medium-term. This ISG white paper outlines the reasons.