Offshore R&D Project Outsourcing China
Offshore R&D project outsourcing Shanghai
Struggling with the ever-increasing costs of research and development (R&D) and strong market competitiveness, the global information technology industry is turning to Asia for cost-effective opportunities such as offshore R&D project outsourcing in China.
Through partnerships with Chinese companies, establishment of local operations and offshore R&D project outsourcing in China, multinational enterprises are able to gain entry to China’s fast-growing sector of IT research and development.
High Costs of R&D Prompts Offshore Outsourcing
Research and Development in the West is increasingly becoming expensive. The high cost of developing software and other technological products and bringing them to the market are encouraging enterprises to turn to offshore R&D project outsourcing in China, where labor and project costs are low a robust intellectual capital that is highly suitable for research and development activities.
The Chinese government and local R&D companies realize the importance of offering prospective clients a solid assurance that in the process of offshore R&D project outsourcing in China, they will not lose control of their project and that all of their proprietary information and intellectual property will be protected.
The Chinese government and domestic R&D firms are eager to increase the volume of offshore R&D project outsourcing in China and become prominent in the global IT industry, hence, they are making great effort to improve China’s R&D capabilities, maintain international standards, and enforce critical changes.
Of late, many multinational companies have begun setting up offshore R&D project outsourcing in China. Large enterprises who were the first movers in this trend are further improving their capacities and sending more work to Chinese R&D outsourcing centers. Usually, foreign enterprises establish their own captive R&D centers in China, the activities of which many analysts believe will strongly contribute to making China a major global R&D center.
Shanghai R&D Prospects
As China’s industrial and commercial hub, Shanghai has positioned itself as a premiere destination for offshore research and development outsourcing. Many firms have opted for offshore R&D project outsourcing in Shanghai due to the low costs of delivery and the opportunity to draw from Shanghai’s vast talent pool produced by top universities located in the city.
A number of enterprises have even formed partnerships with some information science and technology schools for joint research projects. Universities are also developing curriculum in various areas of IT research and development. These activities are reinforcing the growing interest in offshore R&D project outsourcing in Shanghai.
Indeed, there has been an increase in offshore R&D project outsourcing in Shanghai from Fortune 500 companies. Major industries that are shifting their outsourced R&D functions to China aside from information technology include telecommunications,
There are several factors that enable the growth of offshore R&D project outsourcing in Shanghai such as the continued development of high-capacity networks and infrastructures, improved English language skills as well as the creation and implementation of new intellectual property laws.
In the R&D field, Shanghai has a large number of qualified scientists, developers, engineers, programmers, architects and other IT professionals. Its IT researchers and specialists are fluent in English, reducing communication problems between the client and the outsource team. Moreover, Shanghai offers a wide array of opportunities in IT research and development in various tech and computer specialization to include computing architecture, programming language, software engineering, encryption, network security, and user interface development.
Offshore R&D project outsourcing in Shanghai is a growing trend in China’s IT outsourcing industry with global technology industry leaders from computer companies to telecoms companies having moved their R&D work to research centers in the city. These companies have already invested hundreds of millions of dollars in China on research and development projects between the years 2004 to 2006. Analysts estimate that offshore R&D project outsourcing in Shanghai will increase as more multinational companies look for cost-effective R&D strategies.
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