Top 10 list for due diligence in China

Due diligence is an important step in any outsourcing project, but particularly important in China, where quality ranges. Gregory Au Yeung, fellow of international affairs committee of the Hong Kong Computer Society, shared his tips for due diligence in China.

1 Creditability check-Make sure the company has a sound financial background and a well-established corporate structure.

2 Research work-Do your homework to research on your provider's background, in addition to its certification, also find out its reputation within the industry.

3 Location-It may not be the only indicator, but the location of the provider is a guide of its creditability. If the service provider is located at the software park run by the Central government, it's more likely the company has a higher quality. Just like if a financial institute is located at IFC, it's more likely to be a legitimate and quality company than locating, say, at Kwun Tong.