KPMG: 3-5 years of doubling of outsourcing companies will lift mergers and acquisitions

Wang Haiyan KPMG recently released the "China Service Outsourcing City Tour" report (hereinafter referred to as "Report"), pointing out that, as the Chinese Government strongly supports the service outsourcing industry, the market is expected to achieve a composite growth rate of 26% between 2010 and 2014, with a market size of $43.9 billion in 2014. In recent years, China has increasingly become an important outsourcing market, and attracted VC, PE investment enthusiasm.　　KPMG expects the next merger market for outsourcing services to be quite booming. Pearl River Delta is the most concentrated offshore outsourcing in the region KPMG China Outsourcing Management consulting Services partner Liang said that the service outsourcing industry in China is quite a new business model, in recent years, the rapid development. At the end of 2008, there were more than 4,000 service outsourcing companies in mainland China, and more than 9,000 service outsourcing companies had been in the mainland as of January this year. "The report shows that the PRD has a unique advantage over other regions," said Alan Fung, a partner at KPMG's business planning and information technology consultancy, that the PRD is close to Hong Kong and has a geographical advantage in the proximity of Hong Kong's large companies.　　The region has concentrated on many different types of industries such as manufacturing, IT, finance and so on, with an industrial base.　　Mergers and acquisitions will be very active in 35 years. But Liang also points out that Chinese companies are less likely to receive large offshore contracts because of the small size of Chinese companies and the loose domestic market structure, while most multinationals tend to opt for bigger outsourcing companies. According to Alan Fung, Dongguan's largest outsourcing service companies have only about 16,000 people, this and India at a hundred thousand of, hundreds of thousands of of the scale can not be compared.　　After the financial crisis, some outsourcing companies have started to buy at the bottom of the overseas. Liang predicts that mergers and acquisitions between outsourcing firms will flourish in the next 3-5 years due to their small size. In addition, some domestic enterprises are also in the direction of listing financing, "according to outsourcing services Enterprise feedback, PE, V C very optimistic about the outsourcing services industry, it can be said that some of the enterprises have to queue to see the funds." "The size of domestic enterprises will gradually increase, the opportunity to receive a large list of outsourcing will increase."