Bleum Whitepapers

• Outsourcing to China: Removing the Risk & Maximizing Competitive Advantage (2010)

  As the economic downturn starts to wane and conditions become more favorable, CIOs are moving from a "battening down the hatches" type mentality to one of preparing for growth. Although this seems like good news, many organizations will continue to insist that IT budgets remain relatively flat, while at the same time asking CIOs to deliver more in order to not only maintain, but increase competitive advantage.
  
  This paper begins with an introduction to the key trends driving the use of outsourcing and more specifically offshoring and discusses the drivers and inhibitors for choosing China as the offshoring destination.
  
  Eight common negative perceptions about the risks of doing business with Chinese IT Service providers are then explored, including those relating to cultural differences, language, access to skilled resources, quality and intellectual property. Recommendations offer tips for effectively engaging with Chinese outsourcers, including how to select a Chinese IT services provider with the aim of mitigating these eight risks via a vendor evaluation framework, checklist and scorecard.

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