2 questions to ask for a China Strategy.

Many organizations are considering setting up shop in China either via a 'Captive' Mode or via a 'Contractual Arrangement'. These 2 questions must be asked.

1.0 - Does China have an IPR (Intellectual Property Right) Legal Framework in place ? How effective is the same in a 'Contracting Situation' ? Are there any positive and negative experiences ?

2.0 - In the case of a 'Captive' Model, are there any general Chinese conditionalities attached for foreign (non Chinese owned) companies or does it depend on each unique negotiated situation in every specific local province ? (Since the local officials have strongly delegated powers).

Also, An Indian automobile industry executive has posted his China experiences here.

It may be useful to first time Indian manufacturing background visitors there.

Beginning of the end of Google ?

Someone posted a weblog suggesting that Google's problems have just begun.

My take on the same is as follows :

Google's global brand dominance cannot be easily replicated.

Also, it has become the Universal 'Assistant' for all sorts of daily search related tasks for billions of people.

Plus it's proposed extensions into multiple language search. (Useful in countries like India with more than 25 + Official languages).

The trend towards Advertising-Revenue driven Software-As-A-Service business models has Google at the forefront. Others are just beginning to copy the same.

Plus you have a huge mobile-using population that has not even seen a PC (like in India and China) and Google's services towards the same.

Google will extend their dominance from PC's to other devices (including mobiles) using simplicity as their driving strategic metaphor.

PS : Because Kaytek has a Google Adsense based website, there could be some possible bias in my viewpoints.

Globalization does hurt !!!

In one of US Magazines, I was reading about a disgruntled reader's dismay at being without a paycheck for more than 200 weeks due to offshoring of his job.

However, even though he has mentioned China as the 51st state of the US, he has forgotten to mention that because of China's low cost manufacturing and supply chain to the US via WALMART, Americans are able to enjoy one of the world's lowest inflation rates, inspite of the US dollar being so weak.

In my humble opinion, the answer for such scenarios is more education to provide the right perspective and correct wrong misconceptions about Offshoring.

You may find some articles that will (hopefully) help correct many mis-perceptions about Offshoring here.

Also, lastly as any major US outsourcing organization will tell you, it starts with low costs, but remains offshore due to perhaps better quality.

Our website has such stories and experiences of American business leaders and organizations.

But, Yes.

Globalization does hurt ordinary folks all over the world.

Whether in Boston, Beijing or Bangalore.

Who cannot keep pace with Global Change.

The answer for them is perhaps higher value-add, more relevant local skill levels.

Not protectionism.

Visiting China's manufacturing factories ?

Check out an Indian Manufacturing Executive's experiences on his first visit to China in our Offshore Outsourcing Section.