A new business model for China off-shoring

Steve Hamm

People have been talking up China as an IT off-shoring location for years, but, so far, not much has happened. I'm not sure why. The shortage of English language skills is probably a factor. Also, the fact that India is so advanced and so well known makes it harder for another location to grow rapidly. Ultimately, though, I believe China will become an outsourcing powerhouse. The talent pool is just too attractive to pass up. China's education system produces 350,000 engineering grads per year. When China blossoms, it's possible that the successful approach will be the one pioneered by Achievo, a four-year-old outsourcing firm with its headquarters in Silicon Valley and most of its programmers in China.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.