Report from Beijing: 2

Sunday, September 29, 2002

Think the U.S. lead in software is unassailable? Think again.

With U.S. companies looking to cut costs, more and more are deciding to outsource their software development needs offshore. When they do, there are literally hundreds of service providers in dozens of countries competing for their business. In Asia, dynamic software centers have emerged in India, China, Thailand, the Philippines, and Vietnam.

India has long been the favored destination for companies seeking to outsource. The reasons are clear: it has a deep pool of programming talent, a wide range of expertise in both software and hardware design, and the ability to handle complex projects at relatively low cost. Project management and English language skills are strong.

But now China is moving to catch up. Industry analysts predict that China will be the largest IT outsourcing country by 2007. China has an estimated 200,000 professionals in the software exporting industry, with another 50,000 graduates entering the workforce each year. Software parks have been set up in centers such as Pudong (Shanghai), Dalian, Xi’an and Chengdu. U.S. investors can qualify for rent-free office space and sweeping tax breaks. Special offices have been set up to help foreign IT firms obtain business licences.

What does all this mean for EDPros? The world our children will grow old in will be vastly different from the world of today. Global networks will grow. Now is the time to plant seeds in your communities. Encourage a sister city program. Learn more. (See how one small town in North Carolina has done it.) Celebrate international programs at your schools and encourage student exchanges. Support foreign language instruction. Get involved in international travel. The seeds you plant today are likely to grow into big tress indeed.
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posted by Ed Morrison |

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