Tuesday, April 22, 2008

China Software outsourcing model

Background
1. In China, with competitive price, rich human resource pool will provide enough talented engineers to meet HR outsourcing market Demand. And there are excellent infrastructure and government support in IT industry. China has becomes one of the most important software outsourcing countries as oversea clients selection.
2. China’s economy is booming these years and its large internal market is still in rapid growth. The expansion of IT requirement is a big opportunity for foreign software companies. Big software players such as Microsoft, IBM, Oracle are all regarding China as strategic market.

Not like India which is only a pure outsourcing destination, China is a more attractive market.

China offshore outsourcing model


1. The relationship between Oversea Software Company and China outsourcing company is not only a simply buyer and supplier, but a partner relationship with deep cooperation. Under this cooperation model, China outsourcing suppliers not only provide outsourcing services to foreign company, but also help promote the software products in China market.
2. Outsourcing company in China establishes an offshore development center to provide software development services to foreign software company. Three kinds of development business will be utilized during the services. The first one is product Research and Development (R& D). The second one is customized development which involves in developing specific features according to particular requirement of the end users. The last one is products localization which means that we adapt the foreign software products into China market.
3. The dedicated services center provides software implementation, consulting and training services in China market as Chinese user can not bear the high price of service from foreign company.
4. Sales and marketing center established by China outsourcing company to help oversea companies promote their software products in China market.
5. If necessary, foreign company can establish a sales office in China to lead the sales and marketing in China.
6. Sales office of foreign company can look for clients in China market themselves. Usually, they just cooperate with sales team of China outsourcing company.
7. Sales office of foreign company can contact directly with Chinese clients. Because, sometimes they sell products to the key customers in particular industry.
8. Because China outsourcing supplier is familiar with China market, it is easy for them to sell products to Chinese user.


Why this model

l Outsourcing to China can lower foreign company’s R&D cost
l China is a huge distinct market. It is easy for oversea companies to gain from the market if they get help from Chinese partner though the language and culture gap is hard to skip.
l China outsourcing company can promote the software products with a relatively low cost
l Product development outsourcing model enables Chinese partner to understand deeply the foreign products so they could provide better services,
l It is a easy way to build a service team from offshore development center
l The local services center can respond so quickly as to provide better services.

2 comments:

Unknown said...

China is not only affording its great services in outsourcing but also it is coming forward with its new techniques to promote the software products in China market...Outsourcing Company

Anonymous said...

The bottom line behind outsourcing software development is definitely cost cutting. And when one gets the best at a comparatively cheaper rate it is nothing less than icing on the cake. Most advantageous and efficient software development is possible at a cheap rate today because surprisingly they come from some of the poorest countries in the world, as for example, India. After all a few years back who would have fancied that the country with the highest rate of poverty and which is ranked among the third world countries would come up with world class first rate software development companies http://www.infysolutions.com.