Outsourcing to China - Dealing With Dragons
Changes are happening in China that can affect the information and communications technology landscape of not only in Asia but also to the rest of the world.
With the sheer size of its economic capacity and vast human resources, the country is already a force to be reckoned with.
Now that China's government and its business sectors are focusing more and more on infrastructure development, training their people in acquiring competent technical skills and communication (English proficiency is now mandatory for earning B.
A.
and M.
A.
college degrees) as well as stabilizing and enhancing their Internet connectivity, the country is on the rise to becoming a superpower in IT services outsourcing industry by possibly when the millennium reaches its first decade.
Despite these improvements, there are several risk factors that serve as barrier for China in being a business destination for prospective growth.
These risk factors can all be boiled down to one thing: China's business culture.
To make the most of what China has to offer for the savvy IT entrepreneur; cheap but technically-skilled labor, government policies protective of private ownership and intellectual property and physical proximity to solid and growing markets in Asia, the knowledge of Chinese business practices and negotiation strategies is a definite requirement.
Here's what you got to know about how Chinese do business, taken from Sun Tzu's influential and culturally significant Art of War: IMMOVABLE AS THE MOUNTAIN.
Patience is a virtue that many Chinese respect and practice, particularly in business.
Patience is a virtue you can practice yourself in engaging business with the Chinese.
FIERCE AS FIRE.
The Chinese value relationships and they do their best to cultivate these relationships to be lasting.
A lot of businesses still go through a traditional person-to-person basis.
The first, and most important, business relationship you must have while doing business in China is acquiring yourself a reliable, impartial translator.
QUIET AS A FOREST.
Subtlety is another fine trait that the Chinese respect and apply in their business dealings.
They listen more in order to learn more.
You should apply this in respecting the viewpoints of others and not rushing or pushing matters, the Chinese would often find this offensive and counter to what they know to be good business.
SWIFT AS THE WIND.
As the wind can roam above and around an immovable mountain, so are the Chinese willing to be flexible and compromise for the sake of harmony and in achieving consensus for a win-win situation.
With the Chinese, communication is a vital, continuous process.
They would often renegotiate previous matters that have already been agreed upon in order to better the deal.
When this happens, be gracious, open and flexible as well.
It's been said since time immemorial that when in Rome, do as the Romans do.
The same can be applied that when doing business in China, doing business their way would make them consider you indeed their equal, their counterpart and most importantly, their partner.
With the sheer size of its economic capacity and vast human resources, the country is already a force to be reckoned with.
Now that China's government and its business sectors are focusing more and more on infrastructure development, training their people in acquiring competent technical skills and communication (English proficiency is now mandatory for earning B.
A.
and M.
A.
college degrees) as well as stabilizing and enhancing their Internet connectivity, the country is on the rise to becoming a superpower in IT services outsourcing industry by possibly when the millennium reaches its first decade.
Despite these improvements, there are several risk factors that serve as barrier for China in being a business destination for prospective growth.
These risk factors can all be boiled down to one thing: China's business culture.
To make the most of what China has to offer for the savvy IT entrepreneur; cheap but technically-skilled labor, government policies protective of private ownership and intellectual property and physical proximity to solid and growing markets in Asia, the knowledge of Chinese business practices and negotiation strategies is a definite requirement.
Here's what you got to know about how Chinese do business, taken from Sun Tzu's influential and culturally significant Art of War: IMMOVABLE AS THE MOUNTAIN.
Patience is a virtue that many Chinese respect and practice, particularly in business.
Patience is a virtue you can practice yourself in engaging business with the Chinese.
FIERCE AS FIRE.
The Chinese value relationships and they do their best to cultivate these relationships to be lasting.
A lot of businesses still go through a traditional person-to-person basis.
The first, and most important, business relationship you must have while doing business in China is acquiring yourself a reliable, impartial translator.
QUIET AS A FOREST.
Subtlety is another fine trait that the Chinese respect and apply in their business dealings.
They listen more in order to learn more.
You should apply this in respecting the viewpoints of others and not rushing or pushing matters, the Chinese would often find this offensive and counter to what they know to be good business.
SWIFT AS THE WIND.
As the wind can roam above and around an immovable mountain, so are the Chinese willing to be flexible and compromise for the sake of harmony and in achieving consensus for a win-win situation.
With the Chinese, communication is a vital, continuous process.
They would often renegotiate previous matters that have already been agreed upon in order to better the deal.
When this happens, be gracious, open and flexible as well.
It's been said since time immemorial that when in Rome, do as the Romans do.
The same can be applied that when doing business in China, doing business their way would make them consider you indeed their equal, their counterpart and most importantly, their partner.
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