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Source Code China: The New Global Hub of IT (Information Technology) Outsourcing

ISBN: 978-0-470-10696-9
320 pages
October 2007
Source Code China: The New Global Hub of IT (Information Technology) Outsourcing (0470106964) cover image


"The next five years will be [...] a period of opportunity for China to speed up the growth of software and information services outsourcing. China will continue to generate strong market demand for the global software industry."

-H.E. Bo Xi Lai
Minister, China Central Ministry of Commerce (MOFCOM)

Praise for Source Code China The New Global Hub of IT Outsourcing

"Cyrill Eltschinger's Source Code China examines the depths of?a remarkable?shift towards a value-added economy.? After reading this book, you'll?see once again how?China is positioning?itself for leadership in this growing area."

-William G. Parrett
Chief Executive Officer, Deloitte, May 2007

"In his book, Cyrill Eltschinger addresses?an important?perspective: China is not only 'the factory of the world,' it is?also becoming a major technology services hub. For all of us, it is a fascinating experience to participate in this impressive evolution."

-Josef M. Mueller
Chairman & CEO, Nestle (China) Ltd

"Source Code China provides an insightful touch with the reality of how China is reshaping the global market for offshore IT services."

-Prof. Dr. Dr. Klaus Wucherer
Executive Vice President, SIEMENS

"This is a must-read to understand IT outsourcing in China and its impact on the rest of the world."

-Dr. Andrew Lai
VP/GM, Global Delivery China Center, Hewlett-Packard Company;
International Economic Advisor to City Mayor of Chongqing, China;
IT Strategy Advisor, City Mayor of Chengdu, China

"In his book Source Code China, Mr. Eltschinger provides compelling reasons why any company can benefit from IT outsourcing to China, a country that is rapidly becoming the destination of choice for most enterprises."

-Charles Pau
Director, Globalization Architecture and Technology, IBM

"This book demonstrates China's credentials as the new hub of offshore IT services."

-Steve Little
Senior Vice President and Chief Information Officer, D.S.I., Schneider Electric

"Organizations not sourcing IT services from China are literally missing the boat. Mr. Eltschinger's book takes readers on an intellectual journey explaining how and why China is becoming the premier offshore destination for businesses all over the world. This is a must read for any business executive and I highly recommend you knock this one off your reading list immediately."

-David Etzler
Chief Executive Officer, OutsourceWorld

If you are not in China, you are really not in the game
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Table of Contents


Chapter 1. Outsourcing: The Most Important Management Trend Of The Last 75 Years.

Outsourcing As A Business Force.

Made In China.

Setting The Stage.

Chapter 2. Battle Of The Titans: The Global Outsourcing Landscape.

North America.


South America.

Africa And The Middle East.


BRIC Nations.

Chapter 3. China: Your Essential Shore.

Big Numbers From A Big Country.

Government And Politics.

Planes, Trains, And Automobiles.

Educating The Masses.

Your Essential Shore.

The Early Years.

Made In China.

From Pagers To Market Supremacy.

The Internet Arrives.

Not Yet A Green Light.

India Outsources To China.

Risks And Concerns.

Chapter 4. Strategies That Work.

What Works? What Is The Right Shore? What Is The Right Model?

Captive Versus Partner.


Dual-Shore Delivery.

Going Captive And Avoiding The Expat Trap.

Chapter 5. Ten Lessons Learned.

What Works Elsewhere Does Not Necessarily Work In China.

Develop A Vision Of The Future Beyond The Next Shareholder Meeting.

Establish The Right Partnerships From The Beginning.

Do Your Homework.

Commit For The Long Haul.

Prepare Yourself for an Unprecedented Speed Of Change.

Choose An Outsourcing Home City Based On...

People, People, People.

Never Give Up.

It Is All About Face.

Chapter 6. Winning The Talent War.

English Makes The World Go Round.

Recruiting Staff.

Salaries On The Rise.

Chinese Work Ethics.

Retaining Staff: Employee Retention And Loyalty Programs.

Chapter 7. China's Outsourcing Cities.











Chapter 8. IT Outsourcing, Business Process Outsourcing, And Knowledge Process Outsourcing In China.

Scope Of Outsourcing.

Global Outsourcing Options For Customers.

Advantages Of Outsourcing To China.

Disadvantages To Outsourcing To China.

Selection Of Vendor Partners.

Due Diligence of the Capabilities Of Vendors.

Importance Of Business Process Standards.

Importance Of Standards In BPO.

Application Of Standards To Different Process Types.

Process Selection For Outsourcing.

Chapter 9. China's Legal Framework.

Market Entry And Establishing A Business In China.

Intellectual Property Rights Protection.

Employment Issues.

Government Policy.

Currency And Taxation.

Dispute Resolution And Litigation.

Chapter 10. China 2020.

Pillar Of The Economy: Focus On The High-Tech Sector.

Growth Of The Services Sector.

Satisfying A Fast Growing Global IT And Business Processes Services Demand.

Overseas Promotions Leap Forward.

Stable China Market Economic Prospects.

Rise Of Globalization:  In The Front Row.

China 2020: Wild Cards.

Appendix A. Exclusive Survey of Selected Cities in Cooperation with MOFCOM. 

Appendix B. Case Studies.

Appendix C. Contact Information For Major Government Offices, Outsourcing Centers, And Online Resources.


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Author Information

Cyrill Eltschinger is CEO of I.T. UNITED, a strategic outsourcing firm that specializes in tailor-made technology solutions and staff augmentation IT services. The company today is one of the most trusted China-based outsourcing services providers, delivering cost-effective IT solutions to clients inside and outside China. He currently serves as Chairman of SwissCham China (Swiss Chinese Chamber of Commerce), is an industry subject expert for the Gerson Lehrman Group Technology Council, and is an advisor to several China government agencies. He is an avid aviator and was the first foreigner to be awarded a private pilot's license in China since 1949.

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"I would recommend this book to the China novice interested in IT outsourcing." (Supply Management,  Thursday 10th April 2008)
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