BPO in China

I love to travel and I love to study the cultural aspects of different countries. Being in the BPO industry has allowed me to interact with people from all over the world on a regular basis. As I am in Wuhan [China} this week, at the SSON’s conference, I thought it might be useful to share what’s going on here.

China has had a fascinating path on the BPO trajectory. From being a mere ripple in the pond not so long ago, the country has evolved to that of a BPO world-power. Here are some of distinct observations from the land of dragons.

Government incentives: Like everything else, when government decides that they’ll support an industry, they tend to go all out. China has embarked on a massive exercise to promote itself as a BPO destination, thereby bringing itself directly into contest with the likes of the Philippines and India. Cities like Dalian, Suzhou, Tianjin, Chengdu, and Wuhan are all vying for attention, and by building a world-class infrastructure at break-neck speed, these cities mean business. Some of these BPO parks are so new that one can still see the plough marks left in the empty plots.

City Developments: Government promotions in China are a league apart. Creating complete townships from scratch, dotted with Starbucks and McDonalds, and supplied by international schools, are a standard package. These developments have one of the shortest turn-around times I’ve ever seen – often just a couple of years. The only other place I can think of which comes close is pre-recession Dubai. As if this wasn’t enough, government often ends up providing subsidies like 5 to 10 years rent-free accommodations, car loans, and medical facilities to woo people from other cities.

English language: English has become the most popular second language. A large part of the university graduates can converse in English reasonably well. The government is strongly encouraging people to learn English.

Family values: Unless somebody is born as a twin, all of Gen-Y and large number of Gen-X tend to be single children. These people come with strong family bonds and befriend another easily. At the workplace, they tend to be dedicated and hard working. Of course, this comes with the usual emotional and psychological elements associated with single children.

Respect for authority: Call it Asia, call it Communism … there tends to be a large element of obedience and respect for authority in the Chinese workplace. Don’t expect people to challenge you and your ideas if they are your juniors, especially if they have reporting lines into you.

So much for the advantages. But all these plusses have a shadowy element, as well. Let me share some of those challenges with you:

Government incentives: While government incentives are strong, international businesses find it challenging to get a complete understanding on the fine-print of doing business in China. Intellectual property proliferation still remains a big concern. With all the embraced openness, there still remains an element of big brother watching you.

City Developments: Cities and industrial parks have developed so fast that it is very difficult to get good talent in a short period of time. Moreover, due to a strange domestic practice, relocation of people from one city to another is severely restricted. The practice is for high-school children to complete their high school in their place of domicie. This forces a lot of parents to stay put and not relocate.

English language: There has been a massive increase in the number of people who can speak English. However, even in multi-national companies the lingua-franca tends to be the local language, so the use of English is very limited. As I recollect, one of my previous Chinese colleagues, with whom I hadn’t spoken for a couple of months, struggled on the phone for the first few minutes as she hadn’t used English for a while. Moreover, as what is studied is English literature, nationals often struggle with technical and business specific terms. Last but not least, the spoken English can be strongly accented. If you don’t have a good phone line, you’ll struggle to understand. Keep in mind this component when hiring. I came across a fantastic resource with a great skill-set and based on the face-to-face interviews, everybody in the local office was happy to hire the person. However, trying to understand this person over the phone was a different ball-game altogether. The Chinese still have some way to go before they can catch up with the Philippines and India when it comes to English.

Family values: The single child syndrome is a strong one and comes with its emotional and psychological elements. Any workplace may be full of "princes and princesses". Therefore, keep in mind that any tough emotional situation can easily get out of hand. One of our promising resources left the company suddenly, as somebody pointed a finger at him for no real reason.

Respect for authority: Just as a Chinese member of staff may not challenge you if they report into you, they may also not follow your instructions or commit to you if they don’t report into you. They tend to be fiercely loyal to their managers, so, if the manager hasn’t explicitly asked them to work on your piece, expect a very lukewarm approach. This becomes particularly challenging for projects when local managers haven’t fully embraced the change.

Other things to note:

China is not a single culture. Even though Han Chinese dominate the country, it has a large diverse mix. Uighurs from the west have cultural roots in the Turkic language and are similar to people from the Stans (Kazakh or Kirghiz). Dai’s from the south can be mistaken for being Thais. Inner Mongolians are famous for their Mongolian BBQs. There is no language called Chinese. A large part of China speaks Mandarin, often interchangeably referred to as "Chinese." Always carry the Chinese version of your address wherever you travel. Even if you think you can pronounce the names very well, don’t under-estimate the power of sound. Number four and death are so close that for a non-Chinese speaker they sound exactly the same (for me, the sound for the Chinese word for West also sounded the same). Always give and receive business cards with both hands. Also, make sure that you read them and not just pocket them when you get cards. Drinking Baiju with your colleagues is considered a sign of integrating yourself with the local team. Beware, it can hit you hard and the hang-overs can ruin your plans for the next day completely.

A final note on food: Food is very interesting in China.

Every part of a body that is not poisonous can be consumed. Therefore, don’t be surprised if you come across a dish like lamb-eye cutlet. There is no concept of starters or main course. Your order will come as they get prepared and not in the order that you ordered. Very seldom rice will be offered before the end of the meal unless you explicitly ask for it. The idea is not to stuff yourself with mundane food like rice. There can be exotic creatures on offer in the menu. If you don’t have the stomach to watch others consuming them in delight, I suggest you go to KFC or McDonalds (safest would be Starbucks or a Baskin-Robbins!). Last but not least, spicy food in China is really, really spicy. So, unless you are Mexican, Thai or Indian, sit with a bucket of drinking water, ice-cream and a wet towel. Additional resources on China: Watch an interview on China's shared services & outsourcing market:

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