Archive for the ‘Chinese outsourcing companies’ Category
Overcoming the Software Developer Experience Gap in China
This article discusses how the experience level of software developers in China has caused challenges for software outsourcing companies when competing with Indian competitors. However, as the software industry in China matures over the next six years, the experience level of Chinese developers will edge closer to international standards.
My last post before the holidays, Chinese software services revenue predictions fall short, discusses how the Chinese offshore services industry has not met analyst predictions in previous years, but did not get into why. One reason China has not reached expectations, is software development experience within the country.
The graph on the left shows an impressive increase in software related University graduates over the past ten years, but when developing software, experience is more important than number of developers assigned to a project. Analysts predict only 5%-10% of software developers in China have the skills and experience necessary to work on projects for Western companies. The difficulty to consistently build effective teams from China’s current labor market is a key issue being faced by software outsourcing companies in China.
Has the economic crisis helped outsourcing companies in China?
Richard Brubaker’s article 20 Million Chinese Migrants Out Of Work discusses how the economic crisis has begun to affect the Chinese employment market. Many companies in China are scaling back, increasing China’s unemployed. A decreased demand for Chinese software developers would benefit Chinese software outsourcing companies battling a skilled labor shortage causing wage inflation and increased turnover. However, a further look into Chinese outsourcing companies recruitment efforts shows that the economic down turn has not significantly affected the demand for skilled resources.
In China, online recruitment websites account for the majority of software outsourcing companies job applicants and recruiting budgets. Zhaopin.com is the Chinese equivalent of monster.com and is used by most outsourcing companies in China for recruitment. A search of the number of jobs posted on zhaopin.com is a indication of open positions at outsourcing companies and recruiting budgets.
Is the global economic downturn affecting Chinese outsourcing companies?
Dean Stevens recent blog post Uncertain Global Economy Hits Providers highlights specific examples of changes occurring within Chinese software outsourcing companies. Industry wide, smaller Chinese suppliers are running into cash flow problems, while larger Chinese software outsourcing companies are changing strategic plans and generally shifting focus away from servicing Western companies towards the local market.
However, China Daily and China Tech News both report continued growth in the industry and increased demand both at home and abroad. Also, the majority of demand for services outsourcing from China does come from America or Europe, the areas impacted most by the economic down turn. So, why are these Chinese outsourcing companies in trouble?
Chinese software outsourcing company lists
Building a Chinese software outsourcing company shortlist can be time consuming and tedious. Fortunately, IAOP and Neo IT publish yearly global services company lists of the top outsourcing providers globally. This article looks at the Chinese software outsourcing companies listed and the validity of these lists.
Wading through websites developed by Chinese software outsourcing companies who have meticulously placed keywords to rank high in Google becomes tedious quickly. It is easy to find more than 100 websites of Chinese software outsourcing companies that are generic and do not actually represent the companies core competencies. As a result, buyers of offshore services often opt for expert option from service provider lists to create their initial shortlists of potential software outsourcing partners in China. Although these lists are helpful and save time in creating shortlist, buyers should understand the analysts who create the lists do not have the resources to verify the information provided by the outsourcing companies in the application form. Without being referred to a vendor by a trusted colleague, or hiring an outsourcing consultant to aid in vendor selection, lists provide an inexpensive way to create a shortlist.
The two most respected lists in the global services industry are compiled by IAOP and Neo IT. Both lists include outsourcing companies from around the globe, and are compiled by thought leaders in the outsourcing industry. IAOP ranks the top 100 companies, while Neo IT lists the top service providers without rankings. Here is how the Chinese outsourcing companies have ranked over the past three years on the two lists.
Chinese software outsourcing companies compete for English speaking developers
This article discusses how Chinese software developers rank major offshore outsourcing companies as employers by analyzing a popular Chinese website for high tech employees in China.
Of the hundreds of thousands of software developers in China’s high technology parks, a small percentage speak English or have more than five years experience. As a result, software outsourcing companies compete for experienced English speaking developers as an increasing number of Western companies move software development to China. For companies planning to offshore software development to China, it is difficult to assess a software outsourcing companies HR capabilities. Average turnover rates are lower in China than India, but some offshore outsourcing vendors still experience 30%+ annual turnover. How does a Western company evaluate the employee satisfaction of a potential offshore outsourcing partner in China?
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