China appetite remains insatiable
China should not be written off just because the global economy appears headed for deep recession, writes Brian Corrigan.
Australian information and communications technology companies are shrugging off the threat of a slowing Chinese economy, remaining committed to a market that has proved tough for many businesses.
The firms, for the most part already in the country, are confident China is better for business than the battered markets of the United States and Europe.
The ICT companies in China hope the lower, but still high, 8 per cent growth forecast for next year will help them weather the global financial storm.
Austrade national ICT manager Peter Harrison said China has a huge appetite for technology, with the north-eastern district of Dalian becoming a software development hub that competed with India and Russia.
Thousands of information technology students graduate each year – a rapidly growing, if inexperienced, skill base that offers synergies for creative Australian companies developing technologies.
Sydney-based interactive design agency Gruden is tapping into that rich talent pool. It opened an office in Qindao about 18 months ago to overcome a local skill shortage. The city has nine universities, of which seven are focussed on technology.
Gruden runs a postgraduate course through the universities and employs top students to design software within an invisible offshore outsourcing model, where customers in Australia deal with a local project manager and are unaware the work is being done overseas.
Co-founder and Executive Creative Director Brent Trimnell-Ritchard said: “Building a talent pool in China gives you greater flexibility. Two years ago you couldn’t find any staff here [in Australia] and recruiters were taking everyone to town. China is really looking to build its ICT industry and [they] are very welcoming to Western companies bringing the knowledge base in. There’s also a real thirst to work for foreign companies because it opens up future opportunities and also lets them work on their English.”
Gruden plans to develop more software in China to counter rising business costs elsewhere.
The government wants China to be a leading software developer and favours ICT over other industries.
