Outsourcing to China Details
More than 20 cities in China offer viable IT service delivery, according to a recent report by outsourcing consulting firm Everest Group, each with its pros and cons. And with each municipality offering a different value proposition–from language proficiency, technical skills and scalability to various government incentives, operating costs and regulatory requirements–deciding on the right location can be difficult, says H. Karthik, vice president of global sourcing for Everest.
Beijing boasts a great degree of scalability for regional work, due to its proximity to Japan and Korea and resulting language advantage, while Shanghai has the English skills that make it more suited as a global delivery hub.But today, some IT leaders are looking beyond the big metropolitan areas, sending work to the country’s second-tier cities such as Chengdu, Guangzhou and Dalian. “There is definitely a lot of activity in tier-two cities in China,” Karthik says. Buoyed by the China’s long-term plan for development and strong incentives–often negotiable–from local government, such locations account for 42 percent of the delivery centers established in China today. Unlike the second-tier cities emerging in other offshore countries, China’s second string has well-developed infrastructure, including existing IT office parks and reliable telecom service.
More than 20 cities in China offer viable IT service delivery, according to a recent report by outsourcing consulting firm Everest Group, each with its pros and cons. And with each municipality offering a different value proposition–from language proficiency, technical skills and scalability to various government incentives, operating costs and regulatory requirements–deciding on the right location can be difficult, says H. Karthik, vice president of global sourcing for Everest.
Beijing boasts a great degree of scalability for regional work, due to its proximity to Japan and Korea and resulting language advantage, while Shanghai has the English skills that make it more suited as a global delivery hub.But today, some IT leaders are looking beyond the big metropolitan areas, sending work to the country’s second-tier cities such as Chengdu, Guangzhou and Dalian. “There is definitely a lot of activity in tier-two cities in China,” Karthik says. Buoyed by the China’s long-term plan for development and strong incentives–often negotiable–from local government, such locations account for 42 percent of the delivery centers established in China today. Unlike the second-tier cities emerging in other offshore countries, China’s second string has well-developed infrastructure, including existing IT office parks and reliable telecom service.
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
Outsourcing to China
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