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Information Technology (IT)

Offshore IT Outsourcing Service Providers China

China: Geared Towards Global IT Services Outsourcing

From its success as global manufacturing base, China is now shifting to the service industry. One fast growing segment of the broad service industry is IT outsourcing, which in recent years have seen great promise. The major cities that serve as centers for the Chinese IT service outsourcing industry are Beijing, Shanghai, Sichuan, Dalian, Guangzhou and Hong Kong.

Offshore IT outsourcing service providers in China are striving to become globally recognized as a premiere destination for IT service outsourcing. The Chinese government has been clear with its intention to make China an international offshore IT outsourcing base. It has recognized the industry’s potential as a new source of multinational investment for the country and has made efforts to encourage foreign investors and companies to outsource their IT work to an offshore IT outsourcing service provider in China.

Indeed, many multinationals already favor sending their research and development initiatives to an offshore IT outsourcing service provider in China. The industry would like to build on this opportunity to provide a wider range of IT outsourced services. At present, offshore IT outsourcing service providers in China specialize in application development and maintenance, QA testing and systems integration. With the help of the government, offshore IT outsourcing service providers in China are restructuring the IT service outsourcing industry to make it more attractive to global clients.

Advantages

One factor that has driven the demand for offshore IT outsourcing service providers in China is cost-effectiveness. In India, labor costs are rising. The wages of Indian IT specialists continue to increase. In addition, the industry there is also suffering from high attrition rates, which affect costs in labor. Because of these, many companies opt to hire an offshore IT outsourcing service provider in China instead for their offshore IT projects due to the greater cost advantages of China over India. The average annual salary of an IT programmer in an offshore IT outsourcing service provider in China is about US$9,000.

Offshore IT outsourcing service providers in China also offers clients access to a large pool of highly skilled and qualified computer and IT professionals, which increase significantly every year as millions of computer and IT students graduate from universities. The working language of these IT professionals is both Chinese and English. However, an offshore IT outsourcing service provider in China has the prerogative to hire employees that can work or develop programs strictly in English. This is not a problem at all as there is no shortage of fluent English speakers in the country. Additionally, the government has made English compulsory in Chinese schools. Indeed, the language skills of Chinese IT professionals are among their many assets, which have proven to be a main element of the success of offshore IT outsourcing service providers in China.

Additionally, an offshore IT outsourcing service provider in China consists of highly qualified project managers and consultants with abundant industry knowledge and experience not only in information technology but also e-business, management, finance and other fields to guide their respective companies on project implementation and other issues facing the IT industry today.
Moreover, many Chinese high-level executives and IT specialists have received their education in western universities and have also worked overseas prior to returning to their country.

The strong support from the Chinese government is one of the biggest advantages of an offshore IT outsourcing service provider in China. With government support, state policies concerning trade, intellectual property rights and other issues are improving to benefit the service industry greatly. Software piracy used to be a major concern for clients outsourcing their software development to China but this has turned around with stricter implementation of regulations.

While offshore IT outsourcing service providers in China are relatively young, the numbers show how fast the industry has grown in just a few years. The rise in IT spending, support of the government and the confidence of leading multinational IT companies that have already established their presence in the country will continue to boost the growth of offshore IT outsourcing service providers and make them more globally competitive.

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