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In the initials days of offshoring trend,[link widoczny dla zalogowanych], lots of observers have predicted about Chinas ability to challenge Indias outsourcing dominance,[link widoczny dla zalogowanych], experts feel that China are doing pretty good in that front.
China is working hard to gain in the outsourcing market, by collaborating with technology giants like Microsoft, Oracle,[link widoczny dla zalogowanych], and IBM.
According to an Chinese Government analyst group that focuses on the countrys IT sector "More than 50 percent of Chinas total $1.4 billion offshoring market consists of low-end work such as software testing". But it has also been noted that Chinese outsourcing providers are doing more sophisticated tasks for companies in Japan and Korea, which together account for 60 percent of Chinas offshoring business.
But lately it seems the Western markets are reluctant to offshore job to China. The country is presently ranked at a surprising third by 18 percent behind India and Russia in a recent silicon.com survey. India,[link widoczny dla zalogowanych], is well placed by 38 percent.
Another major factor for the reluctance by the Western firm for doing business with China is for the reason about protection of intellectual property. "The key problem is that Chinese people dont recognize that it is doing wrong when they use/borrow/steal someone elses IP," says Lewis, whose company offers offshore development in China. That's why software piracy is such a big problem there.
Despite all these concerns, most of the Western corporations still cannot resist the attraction of marketing goods and services to Chinas huge consumer market. Most experts agree the country will see a big invasion of business from companies that see the need to establish partnerships with Chinese firms,[link widoczny dla zalogowanych], in order to cost effectively manufacture and sell goods there.
The above trend can also be noted in Indias more mature market, the number of electronics companies that manufacture goods in the country is expected to increase over the next couple of years.