Company Profile

Who we are

Qualsolutions provides quality, cost-effective consulting solutions to its clients. It has put in place a network of top-tier professionals, both domestic and international, in order to serve the varying demands of its clientele. A client in the U.S. will deal with customer service and technical support specialists either on-site or off-site, according to the client's preference. The client focus is what distinguishes Qualsolutions from many of its competitors. It can analyze and assess the potential cost-effectiveness to the client of outsourcing some part of a project to its extensive off-site domestic and international teams in order to maximize customer value and satisfaction.

Business Environment Analysis

The global economy is gradually converging towards efficiency as international flows of resources continue to expand. Comparative advantage has caused emerging industries, when developed, to transfer from their original first-world origins to lower cost areas of the globe. This tendency for commoditization of established industries was originally seen as design firms outsourcing production overseas. Over the last decade, this same process has occurred for traditionally white collar work. There has been a strong trend of outsourcing circuit design and software development to India and other low-cost countries. We believe that this trend of the commoditization of the IT industry is going to continue and that a majority of global software development will be done in currently third world countries within 5 years.

China has been recognized as an emerging economy since the early 1980's. It has so far not enjoyed the significant growth in IT outsourcing that India has due mainly to the fact that it is harder to enforce contracts in China as well as the perception that there is a larger language barrier. There is also the factor that the Indian government has been strategically supporting and encouraging the software industry for decades unlike China. The long term trend in China is that respect for intellectual property and other established international norms are developing due to pressure from the U.S. and the WTO. There is growing economic incentive to develop stronger contract enforcement. Right now the business environment in China is still dependent on having powerful, influential business connections as opposed to a more open structure where there is strict rule of law and a level playing field for all players. We have the advantage of these connections right now and we intend to grow fast and become established so that as the business environment gradually becomes more competitive in the coming decades, we will enjoy the competitive advantage of scale and reputation. We believe that significant barriers to competition against us will persist for at least the next five years.

The perceived language barrier is the other main reason that software development is historically done in India instead of China. People in developed countries recognize that the heritage of India as a former British colony provides them with the advantage of strong English skills. The Chinese, by contrast, are often seen as very poor English communicators. This viewpoint has some truth to it historically, but here again the demographics are that in recent decades students in China are studying English from an earlier age. Also, the Chinese, just like the Indians, can typically read and write English much better than they can speak it. Since good software project management practice makes a point of focusing on quality written documentation, the actual language barrier faced by Chinese programmers is much less than generally recognized. It is also possible to use a fluent bi-lingual Chinese project leader to communicate effectively with and manage the work of the less fluent programmers. This language barrier is of minor importance now and will be even less significant in the future.

We are beginning to see major Indian outsourcing companies trying to tap into the Chinese labor market. This trend should intensify over time due to a number of factors. If managed correctly, a Chinese team can complete a project at a lower cost than can an Indian-based team. Secondly, they can find higher quality new people in China as top IT talent in China is less picked over than is the IT talent in India.

Project Classification

The company can operate with a number of project categories, ranging from the low end to the very high end type of projects. The following table describes the project types. Percentages shown may or may not reflect the breakdown for any specific project.