The Elements of China Software Outsourcing

Since most of the software companies are based in countries like the United States and the United Kingdom where the labor and operational costs are very high, most of the work is generally outsourced by these companies towards the knowledge based and developing economies like India and China where the development of the same software is cheaper and the quality of the software is very high.

Outsourcing in general refers to the process of transfer of service by the parent server to a third party in order to meet its financial and managerial goals. It is required to decrease the labor and operations costs, along with the improvement of the service provided since the work is distributed to various outsourcing companies based on their specialty and choice of the parent company. The outsourcing of software has led to the fast development of the software industry in the world, and a speculation exists that the rate of development is three times of what it would have been without outsourcing.

In China software outsourcing is done due to the cheap labor available there. The Chinese are intelligent people, highly competent, and professional in their approach, they don’t mind working long hours in order to complete a project and meet client requirement and, as stated earlier, the job is done much cheaper in comparison to the American or the British counterparts. However the only disadvantage the Chinese have is the lack of proper knowledge of English due to which it is suffering stiff competition from its neighbor India. However, the Chinese government presently is taking measures in order to teach English to their citizens. If they are successful in this program then China will be the world leader in the software outsourcing business leaving behind India, its competitor.

Due to this advantage many of the software leaders like Microsoft, Google, Yahoo, IBM, Red Hat etc. have branches in China who employ Chinese IT professionals and hence outsource their work from there, however the China Software Outsourcing companies are still very popular, they include:

1. Hisoft
2. iSoftstone Technologies limited
3. Kingsoft
4. Linkage Technology Co. Ltd.
5. Neusoft
6. AsiaInfo
7. Beijing Topsec Ltd.

and many others….

These companies are leaders in China Software Outsourcing business and are well known all over the world for their quality, their professionalism, their cost effectiveness and their work satisfaction. The IT industry in China is one of the fast growing sectors and will continue to grow in the same pace for at least the next 10 years.