Comments on: China Software: In a World of It’s Own http://thisischinablog.com/2009/11/11/china-software-in-a-world-of-its-own/ The lifestyle trends shaping China's consumer society Mon, 21 May 2012 14:25:19 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: Bill :D http://thisischinablog.com/2009/11/11/china-software-in-a-world-of-its-own/comment-page-1/#comment-722 Bill :D Mon, 16 Nov 2009 07:09:56 +0000 http://thisischinablog.com/?p=1124#comment-722 Hi, China Lawyer; Yes, there are indeed some larger shops in China doing international business, but of those large shops there are basically two camps: the ones with business from Western companies that also use Indian outsourcers and want to hedge their risks (ie, not wanting to keep all their eggs in one Indian basket); and those that have been tied into the Japanese and South Korean markets for the last ten years. The ones that cater to the East Asian market are finding it devilishly difficult to diversify into the Western market (for technical and marketing reasons), while the bulk of the work for the other group will actually come from multinationals already inside China. Domestic growth for the second group has far-outstripped growth in the international marketplace, especially since the Western economies tanked. Check out a previous post from a couple years ago, where I visited an Indian and a Chinese outsourcer - both in the Shanghai area - to compare and contrast: http://thisischinablog.com/2007/09/07/no-free-lunch-in-china-it-outsourcing/. Hi, China Lawyer;
Yes, there are indeed some larger shops in China doing international business, but of those large shops there are basically two camps: the ones with business from Western companies that also use Indian outsourcers and want to hedge their risks (ie, not wanting to keep all their eggs in one Indian basket); and those that have been tied into the Japanese and South Korean markets for the last ten years. The ones that cater to the East Asian market are finding it devilishly difficult to diversify into the Western market (for technical and marketing reasons), while the bulk of the work for the other group will actually come from multinationals already inside China. Domestic growth for the second group has far-outstripped growth in the international marketplace, especially since the Western economies tanked.

Check out a previous post from a couple years ago, where I visited an Indian and a Chinese outsourcer – both in the Shanghai area – to compare and contrast: http://thisischinablog.com/2007/09/07/no-free-lunch-in-china-it-outsourcing/.

]]> By: China Lawyer http://thisischinablog.com/2009/11/11/china-software-in-a-world-of-its-own/comment-page-1/#comment-702 China Lawyer Sat, 14 Nov 2009 23:09:50 +0000 http://thisischinablog.com/?p=1124#comment-702 I too have seen the sort of software houses you are describing, but the large Chinese outsourcing companies doing work for foreign companies operate very differently. These big companies have a host of highly skilled people both outside and inside China. These companies are already competing head to head with the Indian companies on many projects and I fully expect them to continue expanding their range. I too have seen the sort of software houses you are describing, but the large Chinese outsourcing companies doing work for foreign companies operate very differently. These big companies have a host of highly skilled people both outside and inside China. These companies are already competing head to head with the Indian companies on many projects and I fully expect them to continue expanding their range.

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