Could China be about to reduce India's offshore IT dominance?

China offers a deep pool of IT talent. This talent is available at relatively low cost. Some would say very low cost.

I am trying to keep up to date with what’s available in China and news of another official UK office for a Chinese service provider is worth a post.

It is interesting because China has the potential to become like India in IT services. These days an Indian IT company is never absent from a CIO wish list. But can China do it without an event such as Y2K.

Back in May I blogged about a company called Bleum. This is an offshore software development company based in China but managed and owned from the US. 

China has 350,000 computer science graduates every year and they cost less than their equivalents in India.

Now there is another Chinese company setting up in the UK. VanceInfo Technologies  , as it is known, is a software development firm based in China and is opening a UK office next month as it targets UK customers.

It already boasts Microsoft as a customer and has 300 software developers working in China for Microsoft. It also supplies companies including IBM, TIBCO, HP, EMC, NEC, Mitsubishi, Huawei, Lenovo, ABB and 3M.

For example it provides software development and system integration and is moving into the BPO space.

It has the developers in China but project management will be done from the region the customer is in. VanceInfo Technologies was set up and is run by Chinese Americans.

Its UK focus is in the financial services, media, technology and mobile as well as fixed telecom. It will design, develop and implement software and provide maintenance services. It will also provide ERP, CRM, supply chain management, IT integration and system support and maintenance.


Just to remind you this is Bleum, the company I mentioned at the top of this blog:

The company is 10 years old and is run by American Eric Rongley.

It has about 1000 staff in Shanghai and a handful in the US and Europe to manage the company and support certain accounts.

The main applications it develops are e-commerce, financial services, supply chain and retail. Walmart has an e-procurement system from Bleum.

Bleum has a policy that all staff to speak English while at work.

It uses biometric security to protect its different locations. Each customer will have a physically separate support centre.

Its recruitment process is rigorous. It gets 2000 applicants every month and takes on only about 50.

It has a four stage recruitment process.

1 – Candidates must reach 140 in an IQ test.
2 -There is a skills test and people are chosen depending on the demand for particular skill
3 – Candidates must speak a good level of English.
4 – Then there is a behavioural test.

If you are a Chinese service provider please contact us and tell us what you’ve got. Also if you are a customer of a Chinese company tell us about your experience.