Why Choose China
"The Global Outsourcing Report 2005", a special issue of "CIO Insight" magazine, which ranks countries based on their opportunities, costs, and risks in relation to IT offshoring, predicts that by 2015, China will have taken leadership over India.
China has the following strengths:
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An incredible domestic market of 1.3 billion people that is much more appealing to US/EU companies than any other one; and the media are contributing dramatically by giving China the highest exposure
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China's infrastructure (telecoms, roads, banking, etc.) outpaces from far any other outsourcing country's
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Manpower prices are definitely in favor of China. Moreover the gap is widening since the average salary increase is higher in India than in China
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China is the largest producer of engineering graduates in the world, with some 600,000 coming out of its colleges and universities in 2005
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The attrition rate is significantly higher in India than it is in China
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China has already shown its outstanding ability to become the destination of excellence for the offshoring of manufacturing
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China has taken a very smart road to become the world leader; the country itself, as a whole, has embarked into the race. Political decisions, like allowing Wholly Owned Foreign Entities, the creation of over 500 science parks, tax breaks, etc. have already convinced giant companies like Google, Microsoft or Apple to massively redirect their outsourcing focus to China.
