“Where are you going?” my wife asks as I head for the car at 6:30 AM on a Saturday morning. “To HYSTA’s 10^th Anniversary Conference,” I reply, referring to the Hua Yuan Science and Technology Association’s conference called “Survive & Thrive Amidst a Global Economic Crisis: New Opportunities Across China and the US.”

At her quizzical expression, I start to explain that I’m helping out a colleague and that Steve Ballmer, CEO of Microsoft is going to deliver the keynote speech. But suddenly, doubt creeps in to my mind. Why am I doing this? And for that matter, what on earth is Steve Ballmer doing there? I ponder these questions as I drive to Silicon Valley.

My colleague finds me in the crowd, not too difficult considering I am one of the few Anglo faces in a room filled with business folks of Chinese heritage. I take a seat in the crowd, between Stanford and Berkeley grad students. The event begins with a video montage of the HYSTA board.

Shane and Leslie at the HYSTA conference

They speak of their history, accomplishments, programs, the companies & individuals associated with HYSTA and the key message that HYSTA is bigger than the individual parts when it comes to its importance in the rise of Chinese professionals in Silicon Valley. It’s inspired and I contemplate being able to apply the same common value at our company.

Steve Ballmer hits the stage, receiving a big whoop from the Yahoo contingent (how ironic). Ballmer jumps right into it — he is fully there, in the moment. He goes on to weave a story that starts with why China matters to him, and why Silicon Valley matters, how the two are connected and how the technology we know today will be changed by the people in that room.

The Q&A session starts — I’m in the queue behind six people with my question ready, but Ballmer is so engaged in the initial questions that time runs out before I get the chance to ask my question. But wait — he just gave us his email address. Unfathomable — it can’t be right, can it?

In the following six hours, I interact with approximately 100 bright individuals.  Everyone has an interesting story, idea or business to share, including me, because I can help most of these folks accomplish something key to the success of their company: communication. I can help them, whether they need an interpreter in Shanghai, the translation of a patent, voice over work for a commercial or support in launching an international website.  It is motivating, inspiring and fun.

Twelve hours later, I arrive home, exhausted yet invigorated. “How was it?” my wife asks. Amazing. We chat a little before she heads to bed.  I head to my office to do one last thing for the night, an email to Steve Ballmer.

Thirty minutes and 100 proof-reads later, I send my question: What role does locale-specific language play in Microsoft’s success regarding selling in China, and worldwide in general? Do you think it impacts companies of various sizes (startup to F500) in different ways?”

The reply comes two days later. “There is not much more important than being local.” I realize at that moment that the questions I had been trying to answer on my drive to HYSTA have just been answered. That is why he was there, that is why I will be back next year and that is why it is so important to have native language resources to help our clients succeed in the locales of their choice.  I love this industry and I am so happy to have been “local” when it came to HYSTA’s conference.

You can read this article in Simplified Chinese or Traditional Chinese.

The Chinese IT Services industry is currently estimated at US$ 23 billion. According to analysts, the market is projected to grow at an annual rate of 30% over the next five years, giving China the remarkable opportunity to overtake India as the outsourcing superpower of the world. It is estimated that by 2015, Chinese outsourcing providers could generate $56 billion in annual revenue.

Worldwide, the strongest global demand for outsourcing services comes primarily from the domestic (Chinese) market, followed by Japan and other Asian countries.  There has been a steady increase in American and European demand for Chinese outsourced services, mostly within the IT & Business Process outsourcing sectors, thus driving Chinese-based outsourcing providers to these regions in droves.

Traditionally, companies have outsourced to China because of the cost & value benefits of its vast and inexpensive talent pool. Today, more and more companies are going to China for many other reasons, including:

• Language: English proficiency levels are now comparable to India; English proficiency is required for BA and MA degrees.
• Legal: The Government is passing new laws protecting intellectual property and private ownership and domestic/foreign partnerships.
• Infrastructure: Utilities and roads are more robust than in India, and bandwidth and office space are plentiful and available at low cost.

At HYSTA 2009

For these reasons, among others, outsourcing to China has become part of the global strategy of many companies.

Though it’s obvious China has emerged as a global outsourcing leader, within China there is not yet a clear market leader. Perhaps one of the innovative companies that demonstrated their capabilities at last week’s HYSTA 2009 Annual Conference will leap to the forefront as this market explodes in the coming years.

Some companies to keep an eye on include Achievo, Beyondsoft, Freeborders, Neusoft, Symbio, and VanceInfo Technologies to name a few, which have their roots in Software Developers, Systems Integrators, Software Testing and Localization.

HYSTA (Hua Yuan Science and Technology Association) aims to promote entrepreneurialism and career development among Chinese professionals in Silicon Valley, and to facilitate networking and exchange of business ideas among successful Chinese entrepreneurs and executives in the Silicon Valley and mainland China.