China still safe for IT outsourcing, despite US security concerns, says vendor - weidmanatudeas

China's reputation for certificate may have been marred past recent U.S. accusations of state-sponsored hacking but the nation is still a safe place as a tech subcontractor for foreign businesses, according to one of China's largest IT outsourcing vendors.

"We take security American Samoa a 'live or die' thing," aforementioned Jun Su, business executive vice president for Pactera Technology in an question. "We are a public company. If we ever got exposed for leaking IP, we are dead."

Keeping a companionship's intellectual property secure in China has long been a challenge facing foreign businesses operating in a country known for plagiarism. Merely the concerns around protection have heightened in recent months, Eastern Samoa the U.S. has grown increasingly vocal about alleged Island cyber-espionage that has wanted to buy sensitive information from the U.S. military and corporations.

Certain Chinese tech companies, most notably, Huawei Technologies and ZTE, two major providers of telecommunication gear, have been caught in the crossfire. Last October, a U.S. congressional committee accused the two companies of having golf links to the Island government, and advised that U.S. businesses looks elsewhere for their networking equipment purchases.

Michael Kan

Simply the mounting security concerns besides represent a potential threat to Pactera and opposite China-based technology outsourcing vendors, which withdraw the bulk of their clients from beyond the sea. In Pactera's case, about 39 percent of its favoring forma 2012 revenue came from U.S.-based customers, with another 19 percent from Europe and Japan-based clients.

Both the U.S. and Australian pressure have circulated stories about China's alleged golf links to cyber-espionage, and the country's reputation for security has never been its strong suit, Su said. But the accusations shouldn't spill over into China's outsourcing industry, where strict standards along security are retained, helium said. E.g., China's late prime minister Wen Jiabao made a visit to a company adroitness in 2011 as part of local regime tour. But the premiere was later barred from entering a lab because he lacked the security clearance.

"Security is the telephone number ace thing we decidedly have to do," he said. Pactera has never missing a client because of security problems, according to Su, and the company has offices across the world, including in the U.S. and Europe, to accommodate its customers. "We have to protect the Information processing," he said.

Pactera formed out of the amalgamation last year of two Chinese outsourcing vendors, HiSoft and VanceInfo, which experience histories stretch back almost 20 years ago. Pactera declined to name its key clients, but before the merger HiSoft and VanceInfo were known to count Microsoft, IBM and General Electric atomic number 3 some of their customers.

"These Chinese outsourcing companies have been around for 10, 15 years or more," said Tina Tang, an analyst with inquiry stable Gartner. "They've been following the Western companies' standards, indeed I wear't think security would be a problem."

China's outsourcing vendors, however, still lag down their Indian counterparts in terms of weighing machine. One of India's largest vendors, Infosys, has over 150,000 employees, with an annual revenue at $7.4 billion. Pactera, in comparison, has only over 23,000 workers, and an annual professional forma tax income at $673 zillion in 2012. In addition, the body politic's outsourcing vendors are facing China's rising labor costs, along with a depreciating U.S. currentness.

It's wherefore the Island companies such as Pactera want to wean themselves from low-be outsourcing, and move toward developing their ain more juicy enterprise services and products for customers. Presently, it receives about 70 percent of its revenue from outsourcing, with the ease coming from consulting and products.

"If we can become successful, I think we can definitely become a stellar table service provider in China," Su said. "That volition glucinium the challenge for the adjacent two Beaver State three years."

Updated happening May 15 to clarify Pactera's fiscal results for 2012.

Source: https://www.pcworld.com/article/451835/china-still-safe-for-it-outsourcing-despite-us-security-concerns-says-vendor.html

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