Offshore Software Programming Project Outsourcing China

Offshore software programming project outsourcing Shanghai

In recent years, offshore software programming project outsourcing in China has become one of the core competencies of the country’s dynamic IT services outsourcing industry.
Other services that Chinese IT professionals lend their expertise to are offshore software maintenance, software testing, research and development and systems integration.

With over 1,000 institutions of higher-education with software and IT related programs, it is not surprising to find an abundance of IT talent in China, combined with the fact that China is the most populous country in the world. At present, there are more than 200,000 IT professionals working in the country distributed in different IT ventures such as offshore software programming project outsourcing in China.

Chinese universities produce about 50,000 graduates annually. While many of these graduates previously migrated to Western countries, China is currently experiencing an opposite trend dubbed as the “sea turtle phenomenon” where Chinese IT professionals who have studied and worked abroad are moving back to their home country to take part in the rise of China’s IT industry, part of which is offshore software programming project outsourcing in China.

The educational system has also made great efforts to improve the English language skills of the Chinese. A proactive step taken by the Chinese government towards this end is to invest over US $5 billion for the development of English language education in colleges and universities.

Aside from tapping a vast pool of technically skilled and English-speaking workforce, offshore software programming project outsourcing in China allows a company significant cost advantages. For one, China is known for cost-effective labor. An entry-level programmer earns about US $5,000 a year, which is only slightly higher than the monthly salary of a US-based software programmer. Moreover, power and real estate costs in China are the lowest among offshore destinations, which contributes to the low operating costs of offshore software programming project outsourcing in China.

China’s software services outsourcing has yet to reach the maturity of its manufacturing industry but many analysts believe that this will happen in a relatively short period of time. The city of Shanghai, in particular, is accelerating its efforts to improve the quality of offshore software programming project outsourcing in Shanghai. Many Shanghai-based software services company have acquired ISO certifications and some have received CMM Level 3 certifications.

In addition to seeking quality certifications, Shanghai and China, in general, is also forming alliances with India, the current dominant player in the global IT outsourcing market. Instead of competing with India, Shanghai has decided to gain knowledge of the best practices of India’s mature IT industry. India, on the other hand, benefits from partnering with China because they will gain access to China’s huge domestic market, which is difficult to penetrate without local connections. In fact, many Indian IT software outsourcing companies are currently utilizing offshore software programming project outsourcing in Shanghai to benefit from China’s unique advantages.

While, culturally, China is indeed very different from the West, providers of offshore software programming project outsourcing in Shanghai have the advantage of being exposed to Western culture and business practices because Shanghai is the center of China’s foreign investments. This is also why more Shanghai-based software programmers and project managers are fluent in English.

Moreover, Shanghai is considered a major information technology center. Excellent infrastructures and state-of-the art software parks enable offshore software programming project outsourcing in Shanghai.

Another main driver of growth of offshore software programming project outsourcing in Shanghai is the support it receives from the local and national government, which recognizes the IT and software industry as a key area for further economic growth. Funding, incentives, training programs are just some of the support that the Chinese government gives to Shanghai and to its other national software export bases.

The Chinese government has also been known for being “pro-business”. It has recently set up incentive schemes such as tax breaks to attract foreign investors and clients to its IT outsourcing industry. It has also aggressively promoted its offshore IT services such as offshore software programming project outsourcing in Shanghai and in its other IT centers.

Offshore software programming project outsourcing in China serves a wide market from large multinational companies to start-up business in various industries from banking to consumer electronics to manufacturing to tourism. With the growing need of almost any industry today for software programming and the rising costs of the handling the same internally, Chinese industry players and analysts expect that China’s share in the international market will continually increase.

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