Low Labor Costs as Pull Factor
The most outstanding virtue of China as an outsourcing destination is the cost. In fact, China is often mentioned breathlessly as “cheaper than India.”

According to Bryan Huang, president of BearingPoint Great China, an engineer costing $4,000 a month in the U.S would cost only $500 in China. And that’s for an engineer in Shanghai. According to ChinaHr.com, the salary level of an engineer in places like Xian or Dalian is closer to $250 a month. In short, the cost can be said to be between a sixth to an eighth of what it would be in the U.S., the variances being accounted for by regional differences.
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It’s a Small-biz World
Outsourcing work to China isn't just for big companies anymore. Electra Motorsports in Santee, Calif., set up a machine shop in Shenzhen, China, early last year to manufacture the electric go-karts and related equipment he sells to amusement parks around the world.
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DCS Market in Asia Thrives on Massive Investments in Manufacturing Industries
Strong economic activity in Asia is spurring the growth of manufacturing, which in turn is propelling the growth of the automation market in the region. The Asian market for Distributed Control Systems (DCS) is expected to grow at a compounded annual growth rate (CAGR) of 9.0% over the next five years, according to a new ARC Advisory Group study.

In Asia, large greenfield projects are translating to large investments spread across many verticals such as chemical, electric power, oil & gas, and refinery industries. Many of these plants are engineered and built not only to meet the domestic demand but to cater to the global demand. According to ARC Research Director Larry O'Brien and Senior Analyst S.R. Venkatapathy, the authors of ARC’s “Distributed Control Systems (DCS) Outlook for Asia”, “Robust demand, massive investments, and increasing affluence result in a cycle of wealth creation, and Asia is experiencing this transformation. Large greenfield projects are the flavor in Asia and the scale of plants in chemical, electric power, oil & gas, and refinery industries are leaning towards catering to global demand, in addition to local consumption. Growth in the manufacturing industry is leading to a thriving DCS market in the Asian region. To compete globally, manufacturers realize that high productivity and quality are necessary. They are embracing current technologies to a greater extent and the trends are very positive.”