Offshore R&D Outsourcing Firms China

Offshore R&D outsourcing firms Shanghai

Drawn by a vast and low-cost IT workforce, multinational and local offshore R&D outsourcing firms in China are growing in number, driving an outsourcing trend that is set to expand China’s dynamic economy.

The total number of R&D centers including offshore R&D outsourcing firms in China has risen to over 700 from only 200 in 2002 and in an industry research survey of foreign companies, most cited an offshore R&D outsourcing firm in China to be to their preference for their expansion plans on R&D followed by American companies in second-place and then rival Indian companies.

The growth of offshore R&D outsourcing firms in China is boosted by the country’s efforts to strengthen the protection of intellectual property rights. The developments in this area have encouraged many multinationals to expand their R&D efforts to the country as they grow confident that their trade secrets will be safe.

In general, the initial focus of R&D companies in China was to develop products and technological solutions for the local consumer market; however, offshore R&D outsourcing firms in China emerged as a result of the current IT offshore outsourcing trend and these companies are poised to grab a larger share of the global IT R&D outsourcing market.

A major force behind the expansion of offshore R&D outsourcing firms in China is the national government, which has encouraged domestic and foreign investment in the industry along with its campaign to develop an innovative nation. Chinese government leaders see technological research and development as key to developing further its economy.

Aside from government support and massive R&D investments in the country, other factors that continue to draw business to an offshore R&D outsourcing firm in China is the fairly low cost of recruiting IT engineers, developers and researchers in the country.

An offshore R&D outsourcing firm in China has the advantage of a huge population of IT professionals who are qualified to do research work. Out of the yearly five million university graduates in China, about 1 million are taking up major courses in science and engineering. The number of China’s engineering graduates is more than 600,000 while India has more than 30,000 and only around 70,000 in the United States.

Another growth driver is China’s own consumer market with a size of over a billion. Again, China’s huge population is a competitive edge for an offshore R&D outsourcing firm in China because it attracts businesses not just in the IT field but in other fields as well such as telecommunications or electronics that all require R&D on their IT systems and IT-enabled products and services.

As foreign vendors seek to penetrate China’s profitable market, a partnership with an offshore R&D outsourcing firm in China becomes a part of their China strategy if they do not establish their own offshore R&D facility in the country.

Doing R&D work in Shanghai

To support its IT services outsourcing industry, the Chinese government has identified 11 cities to become national hubs for the industry. Among these 11 cities is Shanghai where various offshore IT outsourcing sectors, including offshore R&D outsourcing are thriving.

The emergence of offshore R&D outsourcing firms in Shanghai is driven by the increasing need of businesses to implement innovative R&D projects cost-effectively. Offshore R&D outsourcing firms in Shanghai leverages the availability of quality yet inexpensive resources in the city to meet current R&D requirements.

Shanghai’s universities produce a steady supply of topnotch engineers, researchers and other IT professionals qualified for offshore R&D outsourcing firms in Shanghai. There is certainly no shortage of talent in this city or in China, for that matter.

An offshore R&D outsourcing firm in Shanghai helps an IT business remain ahead of competition by providing R&D services that produce innovative results, all within the company’s budget. As a strategic partner, an offshore R&D outsourcing firm in Shanghai can serve as a gateway to business opportunities in China’s vast consumer market.

In fact, most of the world’s top IT leaders have already established their R&D centers in Shanghai’s science parks to gain the many benefits of doing R&D work in the city, benefits which an offshore R&D outsourcing firm in Shanghai offers to its clients without the need for them to set up infrastructures or make any fixed investments.

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