There are basically three paths that an organization’s R & D department can follow to gain entry success in China. Take the time to consider the best route for your company, especially if your focus is on embedded R & D technology.
»Unique and independent project
Starting by outsourcing a single stand alone project is a great way to get started in China. Typically, these projects involve development, testing, maintenance, or enhancement of software and hardware. This transaction type outsourcing is ready, simple and has a fast acceleration time. An R & D department can:
o Capture an opportunity within a short period of time.
o Increase bandwidth to meet short-term demand.
o Outsource clearly defined short-term projects.
Companies that follow this path find cost reduction by outsourcing the type of transaction and capitalize on cost savings in the short term.
A service program based on long-term relationships is another great way to leverage China’s technology resources. A dedicated team within the R & D department of the China outsourcing provider can be created, trained, hosted and managed exclusively for their embedded systems R & D technology projects. Customers take advantage of lower wages, while benefiting from an informed staff about the Customer’s corporate culture and values, providing true alignment at the business level. A research and development department in China can:
o Download non-essential functions.
o Fill in the necessary skills.
o Increase engineering efficiency.
o Increase the return on R & D.
»Offshore R & D Center
Many companies find that they benefit more from a single hatchery, which is an extension of their R & D department at home. Building a R & D facility from scratch and introducing best practices provides the ideal solution to meet your company’s strategic objectives. His company leverages China’s low-cost workforce, manufacturing capacity and emerging markets, and there are no intermediaries or third-party costs.
A China R & D center can:
o Provide confidence and security to deal with sensitive data and intellectual property abroad.
o Train talent according to your company’s unique standards and values.
o Increase talent retention, providing an attractive culture and a sense of belonging.
o Share services with other company functions.
o Engage in long-term research focused on innovation, which generally does not generate immediate profits.
o China’s labor market access directly.
Go back to China
Throughout history, new products, new ideas and new opportunities have emerged across borders. Global trade, knowledge and capacity exchange means stimulating ideas and innovations that benefit everyone.
China today is a country with unlimited opportunities. However, personal connections and relationships are essential to any successful business in China. Your company would like to expand to China, but are not sure about possible obstacles such as regulations, recruitment and configuration? The right vendor can smooth your way.
In addition to entering China, the technology expertise of a potential supplier should not be overlooked. For example, does the potential vendor focus on embedded technology? They have experience with OEMs, original project manufacturers (ODMs), independent software vendors (ISVs), system integrators (IS) and value-added service providers (VASPs) that rely on technologies hardware and software?
OEM vs ODM
OEM refers to a company or company that is responsible for designing and manufacturing products according to its own specifications and ODM is responsible for designing and manufacturing products according to the specifications of another company.
Intellectual property is a concern everywhere, but especially in a new environment. What are the procedures for a possible supplier to protect your intellectual property?
Remember, when looking for the best way to leverage China’s vast resources and opportunities, it pays to make sure you have the best supplier as your guide.