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Posts from the ‘HR payroll’ Category

Sourcing business from China. Where to go?

Coastal China is known as the preferred destination for LCC (low cost countries) from which to source.

According to an article on China Briefing though, things are changing.
They suggest to consider carefully the kind of business you are in before picking a destination.
Coastal China isn’t the only option anymore. Depending on your business being capital-intensive, low-skilled labor-intensive, knowledge-based, or resource-based you could have other alternatives to coastal China such as inland China, Vietnam, and India.

  • Coastal China still stands out for three reasons mainly, which are infrastructure, relative ease of doing business and economies of scale. But you have to bear in mind that labour costs are rapidly increasing in the area and the trend is expected to continue in the medium term.

  • On the other hand, inland China offers a more cost effective labour and foreign business is encouraged through preferential tax and aid system.

  • India, would make a great base for manufacturing based companies, although logistics remains the drawback.

  • Vietnam land and labour costs are the cheapest out of the LLC options explored in this article, however, the lack of scale in both resources and capacity offsets the savings previously made.


  • In the end, choosing the most appropriate destination for your business depends on your business requirements.

    To make it short:

    If your company’s costs is mostly affected by economies of scale, it would be financially sensible to stay in coastal China, while keeping an eye toward inland China in the near future.

    If your company’s main requirement is the availability of low skilled and labour intensive workforce and in huge amount of factory space, inland China and Vietnam may both be attractive options for your business, offering low cost alternatives.

    If your firm requires skilled labor, India’s massive number of yearly English-speaking college graduates creates a relatively inexpensive labor pool at a different part of the value chain.

    Also, once you have an office set up, be it in China, India or Vietnam, if you need a low cost hr management solution which is easy and efficient, we recommend to have a look at this hr software vendor. It’s currently being used in China and also at a global level, and is available in both English and Chinese. As long as you have an internet browser the hr software can be accessed from anywhere, therefore saves your company admin and time money and the infrastructure set up costs.

    Before choosing your destination consider every facet of the medal carefully, and have a well thought out business plan in place. For more information on this matter, check out the reference of this article here

    10 Payroll Services Providers in China

    Since it’s actually written in the name of our blog, today I am going to make a list of the first 10 payroll providers in China. It may be useful to you if you are a company about to move or who has just moved to China, and don’t know where to start from.

    You probably find yourself in need for advice on how to set up a business as well as a payroll service,so you may find useful to talk to Dezan & Shira Associates.

    We then have a big international name to suggest for accounting and payroll needs, PWC. If you’d rather opt for a more personal service with the “human touch” then you’ll want to give Lehman Brown a try.

    Now, we’ll make a short list of the rest of our suggestions:
    - Compandben
    - HRO China Payroll Services
    - Vanguard Tech
    - Payroll Serve
    - Pay Asia
    - Path to China
    - Intuit

    This is not an exhaustive list but it means to serve as a starting point for the payroll
    provider quest. We understand the difficulties of setting up operations in a new country
    and therefore we are here to try to help!

    Hope you’ll find this short list useful, at least to start off with.

    Cloud computing and the future

    You’ve probably heard of cloud computing a lot recently. It’s like one of the buzz words of the moment. Well, it has been for a while. There is a whole new industry behind it and also new concerns arise about the security provided. Some firms have used this as a possibility to tap into new markets, like create security as a service.  Others, have touched with hand the safety guarantees given by cloud computing platforms providers like Microsoft, and are happy to use them for business. Let’s explain. According to Wikipedia  Microsoft’ Azure Services Platform is “an application platform in the cloud that allows applications to be hosted and run at Microsoft’ datacenters. It provides a cloud operating system called Windows Azure that serves as a runtime for the applications and provides a set of services that allows development, management and hosting of applications off-premises”. The key points here are the trust and security offered to firms using Windows Azure services as well as the possibility to manage application from basically anywhere. article alley  reassures even the most skeptical ones that cloud computing technology “will be the wave of the future and will likely be changing how people use the info road for decades to come”.
    Wikipedia gives also couple of examples of how and which company is using the Windows Azure platform and we note here an interesting application development. HR Locker, a Web 2.0 provider of  HR solutions to small to medium size companies was built on Window’s Azure cloud based computing platform. HR Locker chose to build their application on Windows Azure to avoid the worry of scalability, backup, security and the various other issues associated with hosting. This choice, provides the peace of mind that HR Locker customers deserve, as they are cared for.  So, if you are not convinced that SaaS are actually the future of business apps, pay a visit to the above mentioned free hr software website, and see for yourself.