End April 2005, neoIT conducted a China Knowledge tour and visited 16 leading offshore IT services suppliers spanning the markets of Shanghai, Beijing and Dalian. At Dalian, the Software Park executives were met up with. The trip was extremely informative as it allowed better appreciation of the facilities and capabilities of the Chinese IT service’s companies. The visit also facilitated an evaluation of the state of infrastructure in various parts of China and approximations of the demand and market trends for IT offshore services from the western world.

The bulk of this report is an investigation of wages across experience levels in specific offshore and nearshore locations and the particular characteristics of each country that affect its ability to offer global sourcing services. A look at how IT wages in each country have changed and are expected to change is also included.

Foreign Risk is largely a product of local conviction, local social constructs, and local trends. As a result, foreign operational risk is fundamentally different than domestic operational risk: whereas liability for negligence is often one the leading operational risks in the United States, it tends to be a more nominal risk in economically developing nations. This publication focuses on the methods of transfer available for political and supply chain risks, which tend to be particularly acute in economically developing nations. With a thorough approach to risk management, an American or European company can move or outsource its service or manufacturing operations to an economically developing nation without assuming increased operational risk

neoIT’s Eugene Kublanov & noted offshoring legal and tax experts Baker & Mckenzie will host a series of Free Global Outsourcing Seminars

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