Offshore R&D Outsourcing Vendors China

Offshore R&D outsourcing vendors China

China has produced many of the world’s greatest inventions from the abacus to the compass and even fireworks. Creativity and innovation appears to be inherent to the Chinese. And today, the government is strongly reviving its capabilities in scientific and technological discovery, research and inventions. In its aim to be a modern powerhouse of science, technology, research and development, the Chinese government has encouraged the growth of both onshore and offshore R&D outsourcing vendors in China.

Many analysts predict that China is well on its way to becoming an R&D leader. Its R&D spending has greatly increased and there is a growing trend for Chinese scientists and researchers based overseas to return home, increasing the capabilities of an offshore R&D outsourcing vendor in China to attract more foreign clients. In 2006, China spent more than US $100 billion dollars in R&D, surpassing Japan’s spending to become the third largest R&D investor in the world next to the US and EU.

China’s top government officials have constantly called on the country to become an innovative nation by the year 2020. The strong drive of the government to venture more into science and tech has inspired the public as well as built a solid foundation for the growth of an offshore R&D outsourcing vendor in China.

One part of the recent massive R&D investments is the influx of foreign R&D operations including foreign-owned offshore R&D outsourcing vendors in China. These companies have seen the potential of the country’s low-cost quality resources from its vast world-class engineering talent pool to its modern infrastructures.

Moreover, the pledge of the Chinese government to support offshore R&D outsourcing vendors in China have also resulted in the creation of new IP laws and stronger implementation of these, encouraging multinational companies to invest in local R&D companies including offshore R&D outsourcing vendors in China.

Analysts expect the current trend of outsourcing to an offshore R&D outsourcing vendor in China to continue with the nation’s tech consumer market poised to be the second largest in the world. The growing number of foreign research centers will also be a strong factor in the development of an offshore R&D outsourcing vendor in China.

In addition to this, the growth of China’s university IT and engineering graduates would also contribute to the emergence of offshore R&D outsourcing vendors in China as industry leaders. The number of engineers produced by universities in Shanghai and Beijing is greater than that of the entire Western Europe and this large scale is indeed the source of incredible potential of an offshore R&D outsourcing vendor in China.

Shanghai outsourcing advantage

Shanghai is the center of China’s commerce and technology, which is why it is not surprising that the number of offshore R&D outsourcing vendors in Shanghai is growing, not to mention the R&D facilities that many large multinational companies have already opened the city.

There are many reasons why Shanghai is an ideal location for R&D. First, Shanghai has developed with the help of the Chinese government several state-of-the-art science parks where modern infrastructures are made available to an offshore R&D outsourcing vendor in Shanghai.

Additionally, these R&D bases are usually located near Universities that provide an offshore R&D outsourcing vendor in Shanghai easy access to excellent R&D talent from engineers, to developers and other IT specialists. Moreover, many Chinese abroad who have gained foreign education and work experience in the field of IT research and development are returning to work for offshore R&D outsourcing vendors in Shanghai, adding to the expertise of the workforce.

Perhaps the strongest advantage of an offshore R&D outsourcing vendor in Shanghai is the fact that all of its quality resources are available at rates about one-sixth that of the United States and other developed nations. This, cost advantage applies to infrastructures, technologies, power, telecommunications, labor, and all other aspects of offshore outsourcing operations.

Previous concerns about English language capabilities of the Chinese and IP protection are being actively addressed by both offshore R&D outsourcing vendors in Shanghai and the Chinese government. They have been successful so far in their efforts as evident in the confidence of many global IT leaders to set up their R&D operations or send their R&D work to Shanghai.

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