Software Outsourcing To China
China
Offshore Software Development & Outsourcing to China
China provides an excellent supply of experienced software development professionals. Offshore software development in China is booming and there are significant advantages to working with a qualified firm.
Why should you consider working with a Chinese software development firm?
Risk management is an important part of business strategy and changes occurring in the global software outsourcing marketplace is causing some companies to aggressively seek geographic risk diversification – not moving their business out of India – but moving to locations such as China to offer a balanced portfolio of software development services from multiple countries and regions of the world.
China is on most company’s short list of global locations as a place to achieve alignment with Asian business initiatives. China has been steadily transitioning to a market-oriented economy – providing opportunities for foreign direct investment and a new market for products and services. This growing economic clout is an attractive lure for many global companies. A smart China strategy is a vital component for future growth as well as having a trusted China partner.
China has a reputation for educating a highly skilled technical workforce. Reports indicate that nearly 6 million engineering graduates live in China – with over 2 million software developers. And, an additional 2 million graduates are predicted to be added each year. However, English proficiency is a required skill for working on multinational software development projects with western countries. The good news is English language aptitude is on the rise in China. Analysts agree that China has challenged India’s IT leadership since 2010 through the country’s improved English proficiency.
The Chinese government has taken a proactive role in the country’s rapid growth – placing a high priority on development of the IT services sector. This includes tax rebates and credit support to boost the nation’s services outsourcing industry. The results of government support are obvious in China, especially in the scale and physical size of infrastructure created in relatively short period of time – featuring “state of the art” technologies, communications, buildings and transportation systems.
Cost savings is a major reason companies consider outsourcing software development to begin with. However, when a foreign currency appreciates heavily against the US dollar, then the labor arbitrage benefit shrinks. Fluctuations of currency values in other countries can cause companies to explore other destinations. The relative stability of Chinese currency policy and its continued economic growth puts China on the short list of countries to be considered for outsourced software development.
To learn more about Accelerance’s offshore software development partners in China, please contact us today!
