The China Daily quoted the KPMG survey, which covered 280 senior company executives across Asia, as saying that China's outsourcing and shared services are rapidly expanding and winning market share over India and other regional destinations.

"Though at the moment the country has still not reached the level of maturity seen in India, the growth of China's outsourcing market is significant. Many Western companies may still see India as their location of choice, but for executives within Asia Pacific the message is clear -- China is now leading the way," said Edge Zarrella, global head, IT Advisory, KPMG China.

According to the survey, 42 per cent of the respondents said their companies have set up one of their shared services centers in China. With regard to outsourcing, 41 per cent said they have a third-party outsourcing provider in China.

Singapore stands second as a popular location for shared services at 29 per cent, followed by India at 25 per cent.

Figures from KPMG show that in 2007, China's onshore and offshore outsourcing market stood at only $7.5 billion. That amount nearly tripled to $20 billion last year, according to the ministry of commerce.

By 2014, KPMG predicts that China's total outsourcing market will stand at $43.9 billion.

The survey finds that over 80 per cent of senior executives employ an outsourcing strategy, shared services, or a combination of the two.

Senior executives across the Asia-Pacific also view China as the preferred destination for setting up shared services centers.

The survey also revealed low labor costs as one of the reasons for contracting outsourcing providers.

Source: Times of India