India, China, and the Philippines are part of Asia Pacific – a vast network of countries and islands located near the Western Pacific Ocean. Before making the decision to send work there, take into consideration the enormous cultural, language, and historic differences, as well as the dissimilarities in business attitudes of people from these regions.
####The promise of outsourcing
Usually outsourcing is understood as sending work offshore. Why go offshore? Put simply, cost savings.There’s a significant difference between average wage rates across the globe. According to the World Bank, the average annual income in 2015 in the United States was $54,960, while for India $1,590, the Philippines $3,540 and China $7,820.In regards to sending software development and technology work off shore, you need to acknowledge the following:
####What to note before outsourcing to India
Indians are famous for their very good English language skills. Indian developers learn their craft in large classes through intensive training programs focusing on a discrete technology. In other words, you have many programmers but each of them specializes in a specific skill.
The traditional philosophy of an employee being loyal to their company is not usually valid there. The average time an employee works for a company is only one or two years. The reason? More and more people want to be managers, instead of specialists such as software developers.
Although the country invested seriously in BPO (business process outsourcing) and high tech jobs, you will be requested to provide very detailed documentation, otherwise the project will not be completed as it should be.
####What to have in mind before outsourcing to China
China has 721 million Internet users, which is 2.5 times more than the US. However, because of The Great Firewall there is no social media such as Facebook, Twitter, or YouTube and there is government censorship of private information. So, will your developers have to work around government control to get your project completed?
Here’s more to consider:
There is a trend regarding outsourcing to China – the country is getting expensive. According to Glassdoor, there’s a rapid wage increase in China – you can hire a software developer in Beijing for about $25,000/year compared to $7,000/year in Mumbai.
####What to consider before outsourcing to the Philippines
Among the positive attributes of workers in the Philippines is their excellent English language skills. This is due to a long history of American settlement. Here’s more about Filipino workers:
Are you considering outsourcing a software development or technology project to India, China, or the Philippines? Keep in mind this important advice: taking the hourly rate as an indicator of a good deal may cause you many, many troubles!
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