Does the vendor have western China development centers?
China, being the worlds factory, is growing at an amazing rate. With growth and international trade gaps comes wage inflation. Major cities like Beijing and Shanghai are seeing fairly signifiacant wage inflation, especially for technical talent who can speak English. Multinationals like HP and IBM are investing heavily in building development centers further west in cities like Xi’an, Wuhan, Chongqing and Chengdu, make sure your propective partner is doing the same. It will take about 2 years for these centers to become fully productive and then you will have the ablitility to move your offshore development center west two years down the road to decrease your costs. Obviously, there are a lot of other selection critera than those above, howeve these are the most commonly missed. Include these when analyzing your choices for a vendor to increase your odds of reaching your companies long term offshoreing goals in China.
