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Outsourcing Rise in China Isn't Connected With Outsourcing Software Development

According to the IDC report offshore outsourcing rise in Chinese cities is going to catch up India up to 2011. But Conrad Chang says that their data is not concerning software development.

Global Delivery Index, which was created by IDC, includes almost 40 cities in the Asia/Pasific region, and it was created for comparison of offshore outsourcing in that cities. There were udes such criteria as infrastructure, prices, political situation and language. There was found that in such Chinese cities as Dalian, Shanghai and Beijing exist projects on investment in infrastructure, that’s why these cities were preferred more than Indian ones.

Chang explained in the interview this growth of outsourcing in their country in the way, that it happened because of dropping of administrative duties level, like data processing etc.

“Software development is the most deliberate type of outsourcing, but in India it is the only one area in which they still have an advantage,” noted Chang. He said that in China they should better follow IT outsourcing and protection of software, because this area is mostly preferred for pirating.

At the same time in United States there are some gossips that Chinese food products, personal hygienic products and toys are not safe for people. That is why there will be increasing of attention to Chinese software development. As you know, many software and IT services are exported to US, and American companies should take care of Chinese software products.

All this actions of US against Chinese companies may help officials in China to understand that it is a serious problem and it may cause serious consequences. In the report Conrad Chang approved that for all the years The Country of Rising Sun could lose its reputation earned for many decades.

Now, Chang advises that it would be better for outsourcing businesses to arrange precautions in China. Chinese officials should pay attention on the compliances in order not to lose their market, because many companies, which have famouse trademarks, use it not for customers and for giving the guarentee of quality, but for getting their own profit.

There are too many distinctions between China and India. In China, according to Chang’s words, there is a huge potential for fast growing in thw areas which require immediate improvement. There are some data that billions of dollars were invested in infrastructure and software development. At the same time, officials in India are trying to improve another areas, such as Internet connetions and electrical power supplying. Also, in China we can see stable improvement of English language knowledge not only in the sphere of data, but also in the everyday communication. In India they are still struggling with higher turnover rates and costs of labour, while Chinese talents are rising.

Despite these facts, Chang is convinced that in both countries there will be rising of offshore outcoursing in the next years. He only hopes that it will not be connected with software development in the future, because this area of production is extremely important for China.

Victoria Malinovskaya, I work for US-based offshore outsourcing software development company, TechnoPark Corp. http://www.technoparkcorp.com