A study which was co-sponsored by American software giant Oracle Corp, and Dimension Data, ranks 60 of the world’s key economies on their attractiveness as off-shoring locations in nine categories, including political and security risk, regulatory environment, tax regime, labor laws, costs ,skills, and infrastructure.
In overall ranking, China also came in Second behind India. continue reading…
In the outsourcing field, China is the biggest challenge and the largest threat to India. With the largest population and fastest economic growth, China has at least three strengths in the global outsourcing market: manufacturing-IT and BPO.
The main advantages of China are as follows:
Lower Manpower costs:
The Chinese workers cost about 15 percent less than equally qualified Indians.
Japan Advantage:
China is likely to grow through the Japanese outsourcing route. The advantages that China has are Japan’s s proximity to China, similarity of the languages. India currently offers almost no BPO services in Japan. continue reading…
China so far, has been mainly focusing on hardware development and manufacturing. But, this trend is changing. The government, clients and suppliers are currently discovering and developing China as next outsourcing heaven.
Expert Cyrill Eltschinger says, “China’s rates can undercut India’s rates by 30% average, in many cases even higher. Most Asian-Pacific headquarters across industries are currently relocating to China from places like Singapore, Hong Kong and Australia.” This move will further spark the Chinese outsourcing industry. China has already started focusing on providing outsourcing services to markets in Asia and the Pacific, especially Japan. continue reading…
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. continue reading…
As all we know, China’s economy is widely estimated to have grown in excess of 9% annually for the past 25 years, and is estimated by many to outpace the GDP of the United States within 10 years. It is without doubt that the IT industry will play an important role in China’s development process, as in many developed countries.
1、 Excellent infrastructure
IT infrastructure has increased really rapidly in the past 10 years, including infrastructure with phones, PC，optical cable and export brand width. And the number of Chinese netizens reaches reached 253 million in 2008, which is the top of the world. The international export band width of Chinese Internet has reached up to 493,729Mbps which has raised 58.1%.
2、 Low cost of labor(USD $500 - $1000 / Month)
Chinese IT professionals are paid much lower than those of most other countries, which is usually USD $500 - $1000 / Month. Utilizing Chinese IT professionals can save you 50-80% over hiring internally. Rates in China are currently 20-30% less than those of India.
3、High rate of literacy(90%)
China holds a high regard for education. Its universities produce more than 5 million graduates per year with more than 700,000 of those being engineers. China currently has 200,000 IT professionals involved in the software export industry, with an additional 50,000 entering the workforce each year.
From 2001 to 2004, China increased the number of its engineering graduates from 40,000 per year to 140,000 per year, outpacing India.
Largely untapped engineering workforce.
More than 1,000,000 higher-education institutions have programs related to software and IT.
4、High level of Government Investment and Commitment to develop the IT Industry
The Chinese government has set up many software parks in different cities in order to accelerate the pace of IT development, including Cao He Jing in Shanghai, and the Zhong Guan Cun Software Parks in Beijing. Enterprises in Parks could enjoy various favorable policies, especially taxation.
A great organ, Torch High Technology Industry Development Center (Torch Center) was founded in October 1989, as an independent legal entity, subsidiary to the Ministry of Science and Technology (MOST). Under the guidance of the Ministry, and devoted to the mission of “Developing High Technology & Realizing Industrialization”, Torch Center has been making daring explorations and constant innovations to promote the advancement of high-tech industries in China.
What’s more, government has established 35 National Schools to provide software training and a steady pool of IT talent.
5、IP Protection
China’s legal system is moving in step with international IP protection standards. And the existing Chinese IP laws are not a new untested add-on. These laws are simply receiving more rigorous application in the context of the emergence of China’s new role in the world marketplace as the home of companies such as TCL or Huawei that are becoming international high technology leaders.
As a signatory of several fundamental IP international treaties, with laws in place that meet the highest international IP standards, and with substantial enforcement of IP rights, China provides now greater protection of industrial and IP than most developing countries and emerging economies.
The increasing amount of patent application authorization is a significant remarked sign of the Chinese progress of IP protection.
6、Chinese Domestic Market
The number of businesses operating in China is rapidly increasing. Over 750 multinational companies are doing technical research and development in China. And many associations of IT have been created, due to the healthy environment for the growth of the Chinese IT industry.
As a result of over a decade of liberalization of trade and many innovations, China has achieved a significant commercial presence on the world stage which has been heightened by accession to the WTO. Today China has positioned itself as the world’s manufacturing center. Across countless industries and sectors it is dominating supply chains. It is now poised to become a world player of the IT and BPO sectors, and the term “China Price” may be as common in the technology and business process outsourcing arena as it is for commodity, automotive, engineering and other goods sought by procurement managers each and every day.
China’s growing role in global business process transformation and how this worldwide trend will influence the development and implementation of business processing strategies in the country. continue reading…
Of the many near-shore and offshore alternatives, China has the unlimited potential. This was recognized by the Chinese Government five years ago - “Facing the fast growing outsourcing market, China is no longer satisfied being “the center of world manufacturing,” it also wants to a big share of the outsourcing pie. We should pay emphasis on the trend of multinational companies outsourcing its internal services, actively creating the situations, discussing the new methods and expanding into new ways of attracting the foreign investment.” The vice Premier Wu Yi stressed in the Forum of Multinational Companies Investment in China on July 15, 2003. continue reading…
History
With almost 4,000 years of recorded history, China is one of the world’s most ancient civilizations.
Economy
China’s Economy became a mixed economy after 1978 when the economic reform began. Since then, by utilizing a series of 5 year plans created to tackle a number of economic problems as they arose, the standard of living in China has greatly improved. It is forecasted that by 2030 the Gross National Production of China will be equal to that of the United States.
Agriculture
Because of China’s huge population and landmass, it is one of the world’s foremost agricultural powers. Much of China’s farmlands is suitable for growing many different types of crops, and in the past few years an increased focus has been placed on animal husbandry and mariculture, marine agriculture. China’s chief agricultural products include: Crops–rice, wheat, sweet potatoes, gaoliang (Chinese sorghum), millet, corn (maize), cotton, tobacco, sugarcane, potatoes, soybeans, barley, peanuts, tea. Livestock–cattle, pigs, poultry, sheep. continue reading…
New Delhi: Even though India is increasingly acknowledged for its scientific and technological power, the country has just 110 scientists per one million population and spends a mere $3.53 per capita on research and development in science and technology.
According to information volunteered by Minister of State for Science and Technology Kapil Sibal, India stands last in a list of 14 countries in spending on research and development in science. China, which stands one notch higher, spends $12.15 per capita and has 633 scientists per million - about six times as many as India’s.
The country with the highest spending is Sweden - spending $1,104.20 per capita of its income on research and development. It has 5,171 scientists per one million people. Next is Japan, which spends $976.58 and has 5,085 scientists per one million. continue reading…
China is far outpacing the United States and other countries with the amount of technology savvy graduates each year. These strong resources are flocking to major Chinese outsourcing companies. The overall number of scientists and engineers and other trained professionals has been steadily increasing, and the education pipeline at the tertiary level is filled with literally millions of students entering colleges and universities in recent years.
China is on an explosive trajectory to becoming a knowledge-intensive information society. The country already has the world’s largest base of mobile subscribers – 426 million as of mid-2006 and is expected in 2007 to replace the U.S. as the country with the largest number of Internet users (the number was 123 million as of mid-2006). continue reading…
