Just as manufacturing went offshore, software development and
management is also going global especially to India and China. According to
Gartner, Inc., by 2007, China will be neck-and-neck with India with each having
approximately $27 billion in annual outsourcing revenue. Companies need to
realize what locations will benefit both short-term and long-term IT and
business requirements. China is a unique global sourcing leader and has
specific technology and skilled resources benefits that make it an excellent
sourcing opportunity for our clients' needs.
India has a proven model and many companies, such as General
Electric, have reaped its benefits by being "first-to-market". With 83% of
companies already outsourcing to India, poised to become the world's
IT sourcing leader by 2008, now is the time to start realizing the IT and
business advantages of China. In many cases, our clients are outsourcing in
India and are looking for a scalable redundant sourcing location. China is an excellent global location as it has an
endless supply of highly skilled resources. Sourcing decisions made today
will represent where you want to be 5 years from now.
In other cases, our clients are already working in China and
want a more open and economically advantaged market to increase domestic exposure. Resourcing in China will help to do just
that.
The China Advantage
Sourcing Country Evaluation Criteria
Below is a weighted scale from 1 -10 in order of the most
important factors in evaluating offshore countries.
There are many countries that are appropriate for providing
smaller scale outsourcing and niche technical expertise, such as Canada,
Russia, Ireland and the Philippines; however, these countries will never be
able to become mainstream sourcing countries due to limited labor
resources; therefore, China is clearly the only other viable, long-term sourcing
country for primary non-niche outsourcing.