Archive for the ‘Chinese vendor selection’ Category
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?
Evaluating financial stability of offshore outsourcing companies
This post discusses best practices for evaluating financial stability of an offshore software outsourcing company. I will focus on evaluation of midsized vendors which are not public. These are best practices for choosing vendors, based on my experience with Chinese software outsourcing companies.
There are advantages choosing small or midsized software outsourcing vendors along with increased risk. One risk which is difficult to evaluate is the financial stability of the vendor. Outsourcing companies under financial pressure can endanger the buyers offshore initiative if they become interested in clients IP for increasing revenue, change business strategies, or shut down operations. When selecting an outsourcing company the buyer needs to consider internal and external pressures on the vendor and cross check any information provided during due diligence. This will save significant time in the long run and increase the likelihood of a successful offshore outsourcing initiative.
Advice for selecting a Chinese software outsourcing company
Many companies have internal experience and best practices for choosing outsourcing vendors, few have experience working with Chinese software outsourcing companies. Here are 5 key areas to consider when looking at China as a global services delivery location.
Choosing a Chinese software outsourcing company should not be a yearly task. However, many American companies are forced to go through the vendor selection process more than once which is time consuming for managers and defeats one of the main advantages of offshoring, to allow managers to focus on core business activities. Below is a list of five selection criteria that are often neglected or forgotten causing the need to switch to a new vendor.
What is the vendors financial stability?
Without naming names, there are more than a few Chinese software outsourcing companies going through tough times financially. Over the past three years most companies competed on price with India which resulted in margins that were raze thin. These companies have gone through tough times over the past year with the appreciation of the RMB causing cutbacks and even layoffs. Check the financials of your chosen partner to ensure they will be in business for the length of the contract. This is not easy as most local vendors are not public but if you build a good relationship with the vendor through the sales process they will normally share this information with you.
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