The combination of innovative technology and outsourcing can create a solid competitive edge for small to medium-sized businesses. By now, everybody has heard of this. But how do you actually obtain such results?
You have a great innovative idea and some money to invest in it. But you don’t have the programming know how or the management expertise to get the project off the ground. A common scenario. Can you really push for success in this competitive technology startup environment and come out on top?
Yes, and you can do this by finding the right partner who will help take your entrepreneurship skills and business to the next level.
It is difficult to do it alone because most small sized companies cannot afford to hire a full-time consultant, software developer or information technology engineers.
Many freelancers that companies can hire straight from the freelance websites require exact specifications from the start. But product development involves research and the client generally knows what type of product he wants and its purpose, but not its exact features and specifications.
So where do you go to get technology and business expertise?
Do you go local or international? It is difficult if you depend on just local resources because of the high costs. Even large corporations are looking overseas for resources to cut their costs and survive.
However, partnering directly with international vendors can be risky and it requires project management expertise which you may not currently have.
One solution is to work with a U.S. based Project Management Team & Engineering Experts who have access to resources from China to give you “value creating capabilities” and flexibility.
Why China for Software Development Outsourcing?
1) Risk Diversification- More and more companies are looking outside traditional outsourcing countries and focusing on China to improve their flexibility, increase their cost savings, and avert losses due to political disorders or lack of corporate governance in a single emerging country.
2) IT development effectively supported by a stable government- Since the information technology development sector is strongly supported by the Chinese government, the ICT infrastructure in China is even better than India.
There are several high-tech software and industrial parks which are designed for high reliability and scalability. Moreover, an electronic information development fund in 2009 was allocated to promote China’s software and information technology services projects.
Please read: http://www.tmcnet.com/usubmit/2009/05/06/4166164.htm for more information.
3) Workforce flexibility and scalability- The pool of computer science graduates in China each year is three times bigger than that of the United States. Over a quarter of a million computer science graduates enter the Chinese workforce annually.
The government has established several national universities across the nation to provide high quality IT education and PHD programs in software technology and engineering.
4) R& D edge- In 2005, China has an estimated 1.15 million R&D workforce. There were 1.53 million science and engineering graduates, and 120,000 possessed graduate degrees. This document explains this in more detail.
Currently, there are also over 900 foreign corporations who have established over 1,000 Research and Development Centers in China. R & D investments in China are even higher than in India.
5) Entry to Huge and Growing Market- Offshoring to China enables companies to eventually localize and market their products to China’s large and high-growth software market of over a billion people and more than 15,000 small to mid-sized local enterprises, which are fast becoming internationalized after China’s entry to WTO. source: http://tradeinservices.mofcom.gov.cn/en/i/2008-09-03/54732.shtml
6) Globally Competitive Culture: The recent 2008 Beijing Olympics is the testament to the fact that the Chinese want to be the best globally. China wants to compete in innovation and quality, and not just cost. And in contrast to other emerging and even other developed countries, China has executed more programs to become the leader in technological innovation.
The Chinese government aims to become on of the top 5 states in the world for science and engineering excellence. Moreover, the government has committed to a long-term plan of devoting 2.5% of their GDP to Research and Development by 2020.
Why work with a U.S. based company to benefit from the software and hardware engineering expertise in China?
You will benefit from the advanced Project Management and International Information Security Standards developed by the U.S. based companies to ensure product and service quality; and effectively protect and enforce IP.
Good business decisions are not based on cost alone but on total value. Partnering with an international team (U.S. and China) enables you to benefit from the distinct strengths of each geographic location: product, process, cost, R& D and client management expertise.
Hence, entrepreneurs of small to medium sized businesses should not be afraid of globalization and using technology to increase the profitability of their businesses.
Startech Global can help small to medium sized businesses achieve higher profitability and competitiveness. Call us for a meeting and learn how technology can be used by your firm for strategic advantages.
In this global economic slowdown, entrepreneurs should increase their courage and energy in looking for opportunities and working collaboratively with U.S. and international partners; to help them innovate and create products that can enhance their profitability and competitiveness within the global economy.
Category: Globalization, News, Outsourcing Tips, Technology