Chinese economic reform has brought a tide of manufacturers to China from neighboring technology hubs like Korea, Taiwan, Hong Kong, and Malaysia. The ripple effect was that US manufacturers followed suit. In response to the demand for skilled labor, Chinese colleges are turning out waves of highly skilled programmers, moving China to the center of the international IT outsourcing boom, in addition to its position as the world’s manufacturing leader.

LuxSpan is an established offshore outsourcing company specializing in outsourcing to China. LuxSpan China outsourcing services encompass a variety of industries, including telecommunications, computers, electronics, software and consumer goods. Read more of LuxSpan’s China outsourcing solutions.

Some of the most compelling reasons for outsourcing to China include:

• Faster time to market.
• The ability to take advantage of the latest technology and manufacturing processes without the capital investment.
• Cost reduction and increased bottom line.
• Enhanced productivity.

Lower Cost, Higher Quality

Why is it cheaper to outsource product manufacturing or outsource technology services such as Web site design and development to China? In a nutshell: low-cost labor and high quality products and services. According to a survey conducted by InformationWeek China, the monthly salary for programmers in high-tech hotbeds such as Beijing and Shanghai is between $600-950 a month, which is approximately half of what technology professionals make in India and less than a quarter of going rates in the US. In secondary locations like Dalian, a coastal city in northern China, salaries average only $450 a month.

China has long been a leader in manufacturing services; in fact, manufacturing accounts for a large percentage of its outsourcing revenue. It is well known that manufacturing goods in China presents significant cost savings over US production—as much as 30-60 percent. Instead of remaining content with dominating factory product outsourcing, China has risen to the occasion by making a strong entry into IT outsourcing.

There are more and more technology professionals entering the marketplace thanks to U.S. tech firms like Cisco Systems, IBM, Microsoft and Sun Microsystems, and the Chinese government, which has established 35 national schools that provide software training, especially in technologies such as .Net, Linux, Java, and Web development services.

China, A Great Place to do Business

To attract foreign partnerships, the Chinese government passed laws protecting ownership and intellectual property in the country. To encourage commerce in the outsourcing sector, China has embraced public and private partnerships and domestic and foreign partnerships alike.

While India has dominated IT outsourcing historically, with China at the forefront of manufacturing, the tide has turned, placing China at the head of the class in both categories. Concerns over the trend reversing are unfounded. Investors in the Chinese outsourcing market won’t face the kind of wage inflation experienced in India as demand catches up with supply. In China, several hundred thousand students graduate every year with technology degrees; the rate in India is not even close.

Instead of scrambling to keep pace with the competition once you find out they are outsourcing to China, be the one with the competitive edge. Contact LuxSpan today to find out how offshore outsourcing to China can help you succeed in today’s ever-changing marketplace.