Software Development in China: Is It A Good Option?

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Software Development in China: Is It A Good Option?

The Chinese software development industry is widely known as one of the most popular outsourcing destinations, with a large tech talent pool and cost-effective rates. So, the country is naturally a choice for most startups to cut down on web development costs. The four major cities in the country that you can consider when outsourcing your web development projects are Shanghai, Beijing, Hong Kong, and Shenzhen.

China is one of the most attractive software development outsourcing destinations due to its low development costs, one of the many reasons it’s a good option. Other reasons include the large talent pool, access to technology and expertise, flexibility, etc. In this article, you will learn about these reasons in detail.

Why Is It A Good Choice?

The software development industry in China has witnessed impressive growth over the last two decades. Even though outsourcing software development to the country comes with its fair share of challenges, you can count on the industry considering the various advantages it offers. Learn more in detail about the reasons why you should prefer web development in China in the section below.

  • Availability of Great Talents
  • Cost-effectiveness
  • Expertise and Technology Access
  • Government Support
  • Rapidly Developing IT Hubs

1. Availability of Great Talents

Around 7 million people work as developers in China, which is known to have the largest number in the world. India comes in second with nearly 5 million software engineers. With such a vast talent pool, you can easily find a developer with excellent technical and soft skills in China compared to other outsourcing destinations.

  • There is a prediction that the country will continue to grow in the future based on several statistics.
  • Developers will number 28.7 million worldwide by 2024, a 3.2 million increase from 2020.
  • By 2023, the country will account for most of this growth, with developers expected to grow by 6 to 8 per cent.

Almost all of the best programmers in the country work for Chinese tech companies, leaving foreign companies with the “leftovers” because they are well compensated. A sad reality, however, is that the country’s working-age population is expected to decline rapidly in the coming years, which will cause the country to be faced with an ageing population soon.

2. Cost-effectiveness

Software development in China is cheaper when compared to what is charged in the US. The salaries may vary for the developers according to their experience and specialisations. However, the price is only a third or a quarter of what their American counterparts would demand.

  • The average Chinese junior developer makes 57 CNY, or 7.908 EUR, per hour.
  • The average senior developer in the country earns 197 CNY, or 26.98 EUR, per hour.

Hiring offshore developers from the top Chinese IT hubs might be expensive. However, the new companies offer their services at much lower costs. Therefore, you can choose programming services based on your budget, and the range of prices attracts various customers.

3. Expertise and Technology Access

As said earlier, China is a technology hub with a lot of tech companies and a huge number of developers working there. Many big and medium-sized IT companies are in the industry that deals with complex and competitive technological projects. The Chinese developers have the in-depth knowledge and expertise to handle such complicated tasks. So, the country is a great choice when outsourcing your projects, without any doubt.

4. Government Support

Software has been growing rapidly in China for the past few years and is now an important part of the country’s economy. As part of its plans to become a world-class, innovation-driven, high-tech society, the Chinese government is promoting software as one of its strategic industries. Outsourcing to China is generally a bit of a mixed bag due to the country’s political and economic landscape.

5. Rapidly Developing IT Hubs

Nearly all of China’s major cities, including Beijing, Shenzhen, Hangzhou, and Shanghai, have tech hubs. As mentioned above, the Chinese government is a great supporter of the software development industry. So, there are many established companies as well as emerging startups in the country, making it a hub for IT outsourcing.

  • Shanghai’s tech experts are well-known for their biotech expertise. Additionally, they are skilled at managing projects that call for knowledge of aviation, blockchain, artificial intelligence, big data, and semiconductor strengthening.
  • Beijing is well-known for its achievements in artificial intelligence, big data, 5G, and quantum computing.
  • Shenzhen is also known for hosting the largest electronic market in the world, Huaqiangbei.
  • They are widely known for their rapid technological innovation in the areas of embedded systems, AI, Hardware, and semiconductors.
  • Alibaba, the largest e-commerce company in the world, is based in Hangzhou. Its top industry verticals include eCommerce, IT solutions, MedTech, cloud computing, and digital security.

Choosing a tech partner is not a simple task. There are many factors to consider besides the price of software development. The Chinese industry provides vast opportunities to developers, and those who are new to outsourcing to the country may find the country’s norms a little overwhelming. 

Despite the various challenges, the country is positioned as one of the best countries for outsourcing software development, with a skilled workforce, competitive prices, a favourable business environment, and strong government support for the tech industry. So you can find a qualified tech partner and get quality services from China. You can make an informed decision about whether it is a good option to choose the country as your outsourcing partner.

Interesting Links:

The difference between Chinese and American software development 

Software industry in China

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