US Worries about outsourcing to India, India Worries about outsourcing to China, Does China have to worry?
Posted Apr 09 2009 6:21pm
This blog reports statistics on the BioTech market as relates to cost. In the US we do recognize the fact that we have lost much business to other countries for various reasons, but cost would be the first and upfront reason. In reading the post made here, it appears that the lower labor costs are in China are also a concern to India as well, which brought me around to the question above, will China ever have to worry? BD
We have recently released a new research report, “Asia Pacific Biotechnology Market (2008-2012)”, which says that the Chinese biotechnology market is expected to grow at a CAGR of over 23% during 2007-2012. This will enable the country to represent around 25% of the Asia Pacific biotech market revenue by 2012. The report has identified lower wages in China compared to other Asian-Pacific countries as the main reason for high growth in the country’s biotechnology market. For instance, wages in China are 10% to 15% lower than that in India, one of the low-cost countries. Moreover, with hire and fire policy, the labor policies in China are more liberal, helping the biotech industry to increase productivity and reduce cost.