China has always stressed it manufacturing. And it is no wonder that the country is willing to take on outsourcing of manufacturing from countries like the U.S. In fact, outsourcing to Chinais becoming a sure way to save money and improve quality.One of the necessary components in China’s outsourcing market is its capacity to generate engineers in large quantities. China boasts graduating 350,000 engineers each year and this figure is unsurpassed by any other country.
In comparison, even India is no comparison with regard to talent pool. And as far as the work ethic in China is concerned, its 12 hours of work a day and it continues for six days a week. It is this same work ethic that makes China so productive, not just in manufacturing but in every field.
As companies are scurrying to decrease costs in the wake of a recovery, they are also looking toward lean manufacturing. This trend can be found across all industries including IT, fashion and the pharmaceutical industry. At this point in time, China appears to be a leader in skilled labor among top outsourcing countriesbecause the country has the largest population in the world. This resource gives China an edge in outsourcing that no other country can provide. Increased labor resources also mean lower prices and this is an attractive way to bring in clients into the country. .
Despite the ailing dollar, the Chinese currency, Yuan, is in good shape as far as trade s concerned since it is tied to dollar. No matter what the currency status of the dollar, outsourcing to the mainland remains to be lucrative as it offers great value for quality.
As an example, WuXi PharmaTech (WX) is a top pharmaceutical firm in China. Surprisingly, the company has retention of 100 percent because of its exceptional R&D quality that it offers to global majors in the drug industry. Moreover, its employees that have PhDs and MBAs from foreign universities in order to close the gap between western companies and Chinese counterparts. WX also has a high standard of practices in terms of its employees and business that it consistently obtains the best work in the pharma sector.
Additionally, the government of China supports outsourcing companies to a large extent. One of the reasons for this is because China is heavily dependent on manufacturing. Trailing educational facilities, the state government supports outsourcing firms the most.
Yet, the singlemost appeal to China outsourcing is that U.S. firms get their value for their dollar with 6.81 Yuan in Chinese currency. This makes services in China inexpensive n comparison with those of any other country. And this is after covering costs for miscellaneous spending like shipping.
Source:-http://advice.cio.com/jakewriter/10751/china_outsourcing_makes_headway_amid_recovery
