Outsourcing in China: opportunities, challenges and lessons learned

Abstract

Purpose The purpose of this paper is to identify the opportunities, challenges and lessons of information technology outsourcing (ITO) in China. Design/methodology/approach The challenges, opportunities and trends in offshore ITO in China are examined based on two trips to software centers in China, interviews and conversations with Chinese executives and government officials, research programs of outsourcing researchers and information from advisors and practitioners. Findings The paper extracts lessons learned about practices, processes and cultural factors that contribute to outsourcing success in China; why China attract ITO customers; how cultural dimensions and differences in accepted business practices complicate outsourcing in China; what strengths and weaknesses to expect from Chinese IT workers and outsourcing companies; and how to evaluate, select and manage Chinese suppliers. Originality/value The paper presents principles and extracts lesson learned to address the issues and opportunities for outsourcing in China.

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