Here are 10 reasons why NOT to outsource to China:
1. There is no protection of intellectual property and none forthcoming
2. The exploding balance of trade
3. China’s indifference to allowing their currency to find its true level by decoupling it from the dollar
4. They are a Communist country
5. They have no concept of human rights - the press has no freedom nor do the citizens
6. They have nothing to give in return but cheap labor - what technolgoical advance have they made since the abacus. They have one paramount desire - to steal our jobs and our knowhow
7. The have no credibility in the greater scientific community - they diddle with research findings to publish first only to have to retract later.
8. They can’t even produce milk that is safe for their own people to consume. If babies die, so what - as long as it doesn’t affect their economic growth, what’s a few children here and there
9. They are the worst polluters on the planet - their technology is outmoded and their carbon footprint is only growing - they’re putting no controls in place to protect air, water or the climate
10. Their one national goal is to gain hegemony in their hemisphere - all their surplus money goes to growing their military and their war machine - why would we want to be more in their debt?

Here are 10 reasons why Chinese outsourcers NOT to take US orders:

1. There is no economy growth and none forthcoming

2. The exploding amount of debt

3. US’s indifference to allowing their property to find its true value by selling more funds

4. They are a Capitalist country

5. They have no concept of respecting others - they send wars to anywhere they want

6. They have nothing to give in return but exploiting the cheap labor - where were they at the time when the abacus was made? They have one paramount desire - to enjoy the abundance of materials supplied by cheap-labor countries while claiming jobs are stolen.

7. They have no credibility in the greater financial community - they sell you expensive junk that will disappear over one night.

8. They can’t even design toys that are safe for their own people to consume (before the truth is uncovered, they will say it’s manufacturers’ fault). If babies do, so what - as long as it doesn’t affect their stock price, what’s a few children here and there

9. They are the worst polluters on the planet - in terms of per capita - they are the only country declined the ratification of Kyoto Protocol.

10. Their one national goal is to gain hegemony in the whole sphere - they even borrow money to grow their military and their war machine - why would we want to be more in their credit?

I totally agree that CMMI should not be the only evidence and I also wrote that “While being CMMI certified doesn’t mean that the adopters will automatically receive overseas orders …” right after and that “CMMI certificate increases creditability, but don’t use it as the only criterion for vendor selection.” in the tips. CMMI is not the only evidence but looking at the significant CMMI adoption rate in India, I feel it should be a good evidence.

The understanding of vendor/outsourcer portfolio requires some basic knowledge about risk management and portfolio management (in investment, project or product management domain). I’ll try to write a blog to further talk about this concept. In short, diversity is one of the things that make the world beautiful. I believe India and China won’t be enough to take over all the software outsourcing business. In fact, countries such as Ireland and the Ukraine also have good presence in this area. However, the 4 countries don’t make an exhausted list. There are other players.

The Chindia idea was amazing and I really liked it.

Funny, I’d have thought this post might inspire some interesting debate but I’m surprised at the tone, level of assumptions, and unfocused quality in the two top 10 lists that were posted as comments here.

I also wonder why those comments (the top 10 lists) neglected to address the point of this post, which seems to have been largely to highlight Indian outsourcing issues with respect to their collaboration with Chinese companies.

To Kenneth Richardson,

I think that the article this blog posts addresses, provides an overview in response to your first point about China’s treatment of intellectual property. If you take a look at the article, you’ll notice that author, Kurt Chen, discussed China’s recent improvements in its efforts to address copyright protection.

You do raise an important issue. Different countries and cultures throughout the world have different understandings of what constitues “intellectual property” and how to treat it in accord with legal and business practices. There remains plenty of variation between “western” countries as well. I think that it would be important for any company researching outsourcing providers to carefully consider how it would like to handle the issue of “intellectual property” in relation to its agreement with the provider and the various laws that might apply, whether from China or any country.

I wonder if you’d mind explaning the basis for the remaining points you itemized. They appear at first glance, to be gross generalizations that lack a clear rationale supporting your argument against outsourcing to China. Please correct me if I’ve misunderstood.

To Daye N,

I get the point of the parallel response you’ve posed to Kenneth Richardson’s but I would ask a similar question of you. How do you justify each of those 10 points? If those can be justified, how do you think they support your argument that Chinese outsourcers shouldn’t take US orders? Seems, also at first glance, like it’s as equally gross a generalization as Kenneth’s post. Again, please correct me if I’ve misunderstood.

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