English teaching and other skill sets:
Over $10 billion was invested in nine universities in China to promote English language and other skill sets.

Increasing telecom density and PC penetration:
China scores over India in these aspects and intends to further increase the gap.

Reduce the bureaucratic red tape:
Effective actions to reduce the bureaucratic red tape. Admittedly, China has received marked results in improving the business environment after WTO entry. For example, the former State Councilor, Wu Yi urged industry and comer authorities to make the necessary reforms of the registration system for foreign-funded enterprises in the line with the WTO rules. After WTO accession, the Chinese government cut about 800 items off its administrative procedural list.

Create clarity and understanding:
In the view of the “outsider” the official rules are unclear and unknown and businesses are subjected to numerous layers of government approvals which means the people who hold the power to say YES are spread out among the local, provincial and national levels. Rules, Regulations, and Procedures are, understandably, written in Chinese. Authorities had understand that to be “user friendly” to the inbound investor and inbound “outsourcer” much more efforts need to be made to create multi-lingual (particularly English) transparency. The ability of foreign outsourcer, customer, and investor to know “what to do” and “where to go” will greatly enhance China’s attractiveness.

To continue improving IP protection:
Chinese government is ensuring an enforcement of law to strengthen the IP protection regime. Perhaps the greatest weakness for firms considering outsourcing to China is that China has a poor reputation when it comes to intellectual property security. The Chinese government is said to have taken a number of actions to solve the matter with respect to intellectual property infringement. One of the significant commitments made by China to the WTO is to protect intellectual property rights.

 

In depth Industry knowledge, awareness of industry dynamics and industry terminology
To undertake projects (IT outsourcing or BPO) for western clients, knowledge of western business environments and western practices is necessary. Movement is being made in this direction in China. As a result of inward Foreign Investment, MNCs and foreign Enterprises arrive in China and they in turn bring “western” business practice.

Process Management and Process Engineering Skills, Technical Skills, Recognized Quality Standards, and Rigorous Delivery Methodology.
China is producing outstanding engineers, and there is an abundance of technical skills. However, these skills must be harnessed and directed within rigorous delivery methodologies and against quality standards, and managed with consummate skill.

The Process Engineers must be brought up to standards of delivery and process articulation as western counterparts and must be equipped and be familiar with western business methods and quality standards.

Critical Mass - to provide assured delivery by stable work force
China currently has over 10,000 significant IT service companies. The top ten companies contribute only 20% of domestic market share. By contrast, India has less than 3000 IT suppliers, the top ten of them account for 45% market share, and at least 15 IT suppliers have more than 10,000 employees. To provide sustainable IT Outsourced Services and Business Process Outsourced services demands critical mass and stability of labor force. Authorities and companies must encourage consolidation of businesses and the development of highly effective employee retention policies.