Outsourcing to China is a necessity in today's economy world. Software outsourcing is an unstoppable trend especially in software industry. Many of the companies consider outsourcing several aspects of their in house operations to focus on competencies cost reduction and organizational restructuring is the driving force behind this decision. For both customer and vendor outsourcing is beneficial.
Due to unimaginable development rate the outsourcing industry which is one of the world leading suppliers of software outsourcing service and china is rapidly emerging from the competitive software in recent years. China aims to overtake India and become the next dominant competitor in software outsourcing and is predicted that within three years china will emerge as one of the top three countries for overseas software outsourcing. To take the advantage of China strength as an outsourcing centre the companies should plan their offshore outsourcing strategies and should also look into the country current software strength.
Compare to India china has much more internal it structure, infrastructure and network. It has more networking capacity and massive telecommunication expansion. Combining all the qualities it makes a rapid and sustains national economic growth.
China has adopted laws and regulations confirming to the WTO's in 2001. Trade related aspect of intellectual property rights (trips) .has an agreement with outsourcing to china which eases the concern of project.
China has 200,000 technical graduates and 800,000 it professionals each year. These people have strong technical skills. So they are competitive with the people coming out of India.
1/5th to 1/10th is the labor cost of china. India's has a large pool of inexpensive talent. But now salaries are jumping at 25 percent in India. 50%to60% cost saving companies can gain from china considering the telecommunication, the infrastructure and project management.
The advantage of choosing china for your outsourcing needs which presents the state, prospect and general focuses of offshore outsourcing industry in china to get a further understanding.