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Run Your Business in the Cheapest Way – China Software Outsourcing
31 Mar, 2010
Written by Effie Sha
Beijing RayooTech Co., Ltd.
I’m afraid ‘Software Outsourcing’ is one of the hottest keywords you heard in various industries. Dramatically, outsourcer companies get benefit from software outsourcing and operate it as a part of their companies.
Probably, some people may wonder why these companies want to outsource their software projects to other company or even other countries instead of developing projects and control the project process in-house. The reason is very simple, software outsourcing business model will save software development cost. The software outsourcing companies already have the software development team including software developers, facilities, project management, quality assurance and delivery model. That means as software outsourcer companies, it is not necessary to spend cost on purchasing amount facilities and hire manpower to complete their software projects in-house. On software outsourcing company side, they will charge much lower rates to done the project for software outsourcers by software talents.
More and more business companies are considering outsourcing their software projects to software outsourcing companies in developing countries, such as China, India, Vietnam, Philippines, Malaysia, etc. These countries are famous for their large IT talent pool, lower labor cost, software development and project process management experience.
There is no doubt that China is a rising star in software outsourcing industry and stand out in Asian software outsourcing countries. What’s the reason makes China so incredible?
1) Rich Talent Resource Pool
Most high school graduates will continue their study in universities or colleagues to be awarded academic certificates. China now has tens of thousands university graduates and postgraduates each year. In 2009, China has more than 200,000 IT graduates. Large number of new IT talents will join IT training program in enterprises before they become the full-time employees. Due to different working experience, developers can be divided into several levels: junior developer (1 – 2 years experience), medium developer (3 – 4 years experience), senior developer (more than 5 years experience), and project manager.
2) Quality Assurance
Software outsourcing industry in China has become more and more mature after over 20 years of growth and development. China completely has ability to undertake software outsourcing project for global clients, both project development and management. Most Chinese software outsourcing companies have achieved CMMI Level 2 or 3 and some companies have already awarded CMMI Level 5, the highest level from Software Engineering Institute (SEI). CMMI stand for Capability Maturity Model Integrated, the best process model framework in the field of software engineering, systems engineering and hardware engineering is sponsored by Software Engineering Institute (SEI), Carnegie Mellon University, USA.
3) Reliable Infrastructure
Most software outsourcing companies located in big and modem cities, such as Beijing, Shanghai, Xi’an, Tianjing, Hangzhou, etc. China provides convenient transport system between cities and within cities, so it is easy for clients to transfer from one city to another city. And each cities has international airport, thousands air lines for many countries. China also provides world class hotels for guests to book online, or choose general hotels to save your cost.
4) Government Support
Software outsourcing industry has already become an important part of country’s economy. China government made a long-term strategy to develop software outsourcing industry, for example, software park building, IT talent training, education system optimizing, tax reducing, equipment supporting, etc. in order to promote software outsourcing industry.
5) Attractive Cost
China has lower labor cost than other countries. Global clients only need to pay very reasonable cost if they outsource software projects to China, especially they can save lots of money on large projects. And it is easy to transfer payments.

Beijing Street: The Place lifesatyle shopping centre on Dongdaqiao Lu in the western part of the CBD - with the world's largest overhead television screen.
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