software outsourcing

A blog related to software development company and offshore software outsourcing

Tuesday, May 23, 2006

Offshore Outsourcing Development work in China

The future of the international back offices would be converted into Offshore Outsourcing Development work says founder of Comp Pacific International, that is one of the China's few indigenous Offshore Outsourcing companies returned after a decade in IT in U.S. health care, determined to prove that China could do just as well as India in Offshore Software Outsourcing services.
The international market for spending of offshore outsourcing development and IT services, the western organization would reach fifty billion dollars by year 2007; this is according to Gartner consultancy hat is growing by double digits. It’s fitting that the future would be emerging in an old imperial capital Xian that was the final stop for caravans. In china Xian is the main place of the country's space program, it consist of the aircraft construction hub and known as home to one of the China's biggest technology parks with 35 square kilometer Silicon Valley that houses more than 7,550 organization which is supported by more than 100 universities and so many Offshore Outsourcing development centers that churn out 122,000 graduates every year and half of them are in computer sciences alone.
China has ambition to become a global power for software development services to match its pre-eminence in manufacturing services. Attraction of Offshore Outsourced business is central to this, the market for Business Process Outsourcing that encompasses processing bills & credit card applications to entire management of human resources and operations should be worth another 24 billion dollar for coming year with more and more expansion. India is top leader and has captured most of the work for offshore services, while one can say China is the global top location for manufacturing contracts but it has just 2 billion dollars of the outsourcing services market.

Offshore Outsourcing development work

China, where an entry-level Offshore Outsourcing Development employer is paid about 300 dollar per month, if that is compared to American wages its one-tenth, and it is very competitive. Chief executive officer of SAP that is one of the biggest software development organizations of world gave warning early this year that India is becoming too expensive for the Offshore Outsourcing development work. Therefore, handling of back-office functions for organizations from Japan & South Korea would go away to china. Xian's annual Offshore Outsourcing revenues are very low as compared to other organizations, according to official figures it is 40 million dollars out of more than ninety percent comes from Japan.
China has plenty of potential as its employees are well educated in basic computing & mathematics studies. They may lack creativity, but they are disciplined and readily trained, that makes them better at tedious jobs than most of Indians employees. This suits the Offshore Outsourcing Development business, as India used to be cheaper, but salaries for graduates, engineers and programmers have been climbing fast, and staff turnover at IT organization could reach 30 % to 40 % every year.