China, or Not
McKinsey says China could emerge as a major player in the offshoring of services, including engineering and R&D...unless it doesn't.
"China faces formidable challenges but can also draw on unique strengths."
For example, lots and lots of people in China speak Japanese and Korean, which "should help it increase its lead in the North Asian market for the 'near-shoring' of IT application and business-process-outsourcing (BPO) services."
On the other had, China doesn't have enough workers with international project-management skills and strong English-language skills to be a major player for European and US companies.
And China's proximity to Asian semiconductor and electronics companies give it a leg up "in the fairly new market for the offshoring of engineering services...However, its relatively poor protection of intellectual property rights poses a significant barrier."