Offshore software outsourcing. why China and why now?

While many of Britain’s software organisations may now be grappling with concerns over a cooling economic climate, rising operational costs and ongoing skills resourcing pinch-points, the moment may present a great opportunity for China’s emerging software development outsourcing industry to make its presence felt.

Recessions may not be bad news for everyone. Whilst many of Britain’s software organisations may now be grappling with concerns over a cooling economic climate, rising operational costs and ongoing skills resourcing pinch-points, the moment may present a great opportunity for China’s emerging software development outsourcing industry to make its presence felt, challenging the Indian value proposition that has been the dominant port of call for those considering an offshore strategy. All of which could give software development firms and IT management departments pause for thought.

To China watchers, this is not a surprise. The country’s return to the front of the world’s stage by successfully hosting the 29th Olympiad was actually just the most visible public face of what has, behind the scenes, been a major outward facing strategy for the nation’s domestic industries. Enjoying full support from national and provincial governments determined to move up the products and services value chain, China’s commercial and technology growth objectives for the next decade or more are anchored on accelerating beyond being the world’s manufacturing assembly hub, to becoming instead a key player in the 21st century’s knowledge economy. In this overall picture, the software product and services sector can be seen as a linchpin in helping to achieve these goals, through the development of high technology services, product oriented research and export driven international reach.

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