Offshore Software Engineering Outsourcing China

Offshore software engineering outsourcing Shanghai

Asia remains to be the premiere region for offshore outsourcing. India remains to be the dominant IT service provider but several countries are strongly competing with it for a larger slice of the offshore outsourcing market. One of these countries is China. A recent outsourcing trend reveals that Indian IT companies are sending their work and setting up their operations in China.

Software is one of the key strengths of China’s IT outsourcing industry. Offshore software engineering outsourcing in China has not only attracted Indian firms but also multinational companies. These companies are either looking for a service provider to develop their software or they have a software engineering business and requires an outsourcing partner. In both cases, offshore software engineering outsourcing in China is a suitable solution.

Talent and Training

Software engineering is the most in demand profession in China. Today, offshore software engineering outsourcing in China employs more than 700,000 software professionals. Ninety percent of China’s top university and college software or IT graduates are hired by Chinese software companies but the growing demand for offshore software engineering outsourcing in China has prompted the Chinese Education Ministry to authorize 35 local universities to run software institutes in order to fill the increasing need for software personnel.

These institutes train software professionals and prepare them to join the industry of offshore software engineering outsourcing in China. They accept junior and senior university students who are majoring in software as well as double major undergraduates and graduates with bachelor’s degree or higher education in software. These institutes are working in cooperation with international schools to enhance their methodologies. They are using foreign reference books and have adopted a bilingual medium of instruction.

Government Support

The Chinese government has played an important role in the growth and promotion of offshore software engineering outsourcing in China. It has launched a series of policies aimed at encouraging multinationals to outsource to China more of their IT projects, such as software engineering, software development, R&D and others. These government policies have driven the high volume of offshore software engineering outsourcing in China.

Japan constitutes about 60 percent of China’s software outsourcing market followed by the United States and Europe, each accounting for about 15 percent of the market. The Chinese government is focusing on expanding those markets with the establishment of a high-technology program aimed at developing the capabilities of offshore software engineering outsourcing in China and helping Chinese software engineering companies improve their business with American and European clients.

Moreover, the Chinese Ministry of the Information Industry has selected key cities as the state bases for offshore software engineering outsourcing in China and the country’s entire software export industry. The first six cities include Shanghai, Dalian, Beijing, Xian, Tianjin, and Shenzhen. Five other cities later joined the list including Guangzhou, Hangzhou, Nanjing, Jinan and Chengdu. The Chinese government has committed to prioritize the software industries in these cities, provide them with necessary funding for their development as well as full support to promote their software outsourcing businesses.

For their part, Chinese software companies are working to improve the image of offshore software engineering outsourcing in China by acquiring CMM and ISO9000 certifications.

Shanghai is at the forefront of China’s outsourcing industry. Offshore software engineering outsourcing in Shanghai is leading the software sector with revenues reaching close to US $6 billion during the first half of 2006 and a 500 percent increase in employment rate within a five year period from 2000 to 2005. In order to further boost offshore software engineering outsourcing in Shanghai, local officials are focusing on skills building and innovation.

Offshore software engineering outsourcing in Shanghai offers its clients the opportunity to utilize some of the world’s best IT talent and cutting-edge IT infrastructure and at the same benefit from proven practices in project management and cost-effective solutions.

The flourishing offshore software engineering outsourcing in Shanghai has also attracted international software conferences and summits. The global software industry is all eyes on China, particularly in Shanghai, whose industry sales are expected to reach US$12 billion by the year 2010. With the support of the local and national government and the collective efforts in self-improvement of Shanghai-based software companies, the offshore software engineering outsourcing in Shanghai continues to grow.

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