Offshore IT Outsourcing Firms China

Today, the world is all eyes on China’s thriving economy. After emerging as the premiere manufacturing base of the world, the spotlight is now on the country’s booming offshore IT services market. India has so far been the dominant player in this field but offshore IT outsourcing firms in China are fast catching up. Indeed, the world has been watching the developments in China and many leading global IT companies and outsourcers have started their operations in the country. Many offshore IT outsourcing firms in China were formed through partnerships and joint ventures consisting wholly or partly of foreign-based companies and local partners.

Indian IT service firms are among the major movers to China, largely due to their aim to remain competitive. A leading research group has predicted that India will have control of 40 percent of the exports of offshore IT outsourcing firms in China.

People: Skills, Capabilities and Attitude

Being the most populous country in the world, one advantage of an offshore IT outsourcing firm in China is the country’s vast pool of IT labor force. In addition, their bilingual or multilingual abilities and cultural advantage help global companies deal with Asian clients, particularly Japanese and Chinese customers. China has also worked to improve the English speaking capabilities of its youth and workforce making the language compulsory in schools. Depending on the project’s language requirement, programmers in China may use Chinese characters or English alphanumeric characters to develop computer language.

One of the strongest contributing factors to the success of an offshore IT outsourcing firm in China is the dedication of its people. Chinese IT professionals have a reputation for being committed and hardworking with skills comparable to any other top IT outsourcing providers. Many companies that were uncertain of the quality of work that they will get when they first came to China were well satisfied when they received the output and have since outsourced their IT services to the country, hence, encouraging global interest.

One clear advantage is that the quality work comes at cost-effective labor rates generally lower than that of India. IT engineers in Shanghai typically receive US $500 compared to the US $700 average monthly rate of an Indian engineer. Both of these rates are of course considerably lower than the rate of an engineer based in the United States, which on average is about US $4,000. The cost-effectiveness of hiring an offshore IT outsourcing firm in China allows companies to sustain their competitiveness.

The Chinese government recognizes the significant role of offshore IT outsourcing firms in China in the economy’s growth. One way that it has given its support is by partnering with multinational companies that will provide training to IT engineers and specialists. This initiatives aim to meet future demand for IT professionals that experts predict will reach 4 million.

Intellectual Property Rights

Moreover, China has addressed previous concerns with intellectual property rights and software piracy with the implementation of tougher penalties. In addition, a typical offshore IT outsourcing firm in China has in place their own measures to protect their client’s intellectual property. For instance, the firm and its employees have access only to necessary documentation and this access is controlled. All work is done in secure development facilities. 

Growing Domestically and Globally

While China’s strong domestic IT services market continues to grow and the industry continues to serve local companies, the Chinese government and the each offshore IT outsourcing firm in China have their sights set on expanding the country’s offshore IT outsourcing services to capture larger projects from global clients, particularly those with a strong presence in China including companies with Asian customer base. With so many large global enterprises with operations in China, Japan, Korea and other neighboring countries, there are indeed great opportunities for Chinese offshore IT outsourcing firms.

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