Why Outsourcing to China
China is emerging as a top preference for offshoring and software outsourcing. Despite the impact of the Global Financial Crisis, China’s economy is fundamentally strong. China is an ideal destination for both multisourcing and outsourcing. For more reasons, please refer to the following:

Chinese Government Strong Support
The Chinese Government is offering more and more support for promoting the offshore software business in China. In addition to investing heavily in developing a skilled IT workforce, the Government is offering tax breaks and incentives to (foreign or Chinese) software outsourcing enterprises establishing business in China or enhancing their capabilities. Many world-wide IT sourcing summits are being sponsored by the Chinese Government and service vendors are receiving numerous training opportunities organized by the local government. In addition, more and more local governments are encouraging enterprises to go abroad to attend international conferences or summits. It is important to notice that more and more Chinese government officials are becoming bilingual.

China’s Ever-Changing Infrastructure

Twenty-first century China boasts an ever-chaning infrastructure, capable of supporting wireless communication, global travel, and modern working and living facilities. China is now wired for business with free and reliable broadband and wireless access being widely available. Beijing is on par with New York and London, boasting a state of the art international airport with direct daily flights to most major cities around the globe. Especially post 2008 Summer Olympic Games, Beijing offers a spectacular infrastructure, which provides you a predominant working and living environment. There is accommodation and restaurants that are tailored for all tastes and budgets.

China's huge talent pool

Each year, millions of students graduate from Chinese universities and colleges. The amount of university graduates is up to 5.59 million in 2008. Nearly 10 percent are IT-majored students. The number of graduates from Chinese universities with degrees in IT, computer science, and software engineering is growing year by year. Chinese people are very smart and creative; they can adapt to the new environment rapidly. Moreover, their verbal and written English is excellent, since they start to learn English from a very early age in grade school.

Large Potential Domestic Market
With one of the largest populations on earth, the potential domestic market in China is unpredictable, and is growing at a very fast rate. Many foreign countries are taking notice of China, including India—the outsourcing giant in the world. Chinese software companies can be very helpful in assisting overseas enterprises that want access to local markets.

Intellectual Property Risks
Many outsourcing buyers will have a legitimate concern about Intellectual Property (IP) issues and the capability of Chinese Software exports when they think about outsourcing to China. It is true that in comparing with India, the Chinese have not been paying much attention to IP protection; however, things have been changing. The Chinese government has been cracking down on piracy, while educating software enterprises about new techniques on how to protect their software IP. Many multinational companies select China as their sourcing destination. For example, Microsoft and IBM have located their largest production development centers in China.

China’s IP Strategy
The Chinese strategy will be to offer high quality software results. Software specialists in China may not be so adept at composing proposals such as firms in India may produce; however, Chinese IT companies and their software specialists are very talented in execution. They will surprise you with their capabilities, as long as they are provided the right guidance and a clear understanding of the customer requirements. Increasingly, Chinese firms are becoming international. They can collaborate with the excellent sourcing companies in the U.S., Canada, and Europe to complement each other’s strengths and produce cooperation models that can be very flexible.