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Juniper Networks Inc the huge Network equipment company has revealed that it is increasing its outsourcing business in China. According to one top company executive the move will help cut costs and make use of the strength of Chinese electronics manufacturing.

Juniper chairman and CEO Scott Kriens mentioned that the added savings is needed as there is fierce competition within their industry.

The People's Daily Online reported that "Juniper's products are currently made by contractors in Malaysia, the United States and Canada and used by large enterprises and organizations in the finance, education and government sectors in their internal networks."

"Last year, Juniper's China business grew by more than 50 per cent over the previous year, making it the fastest-growing market for the company."

"This year is expected to be critical for telecom and network equipment vendors in China, as the country is expected to launch third generation (3G) mobile communications systems and accelerate the construction of the China Next Generation Internet (CNGI), which has a higher bandwidth, more secure communication and greater applications than the existing networks."

One thing that has turned off some telecommunications companies from doing business in China has been that the Chinese market is basically controlled by the state through four different carriers, which market-oriented companies have a hard time dealing with.
 
Kriens doesn't think this is something that Juniper can't deal with. "Chinese leaders can make multi-year commitments to many projects of far-reaching implications and this is unimaginable in many countries, but its benefits for the country may be significant." 

For Juniper this could be doubly true for its own benefit as China is attempting to build the largest next-generation network in the world, the CNGI project, which will involve China's six largest telecom carriers. It involves connecting 39 Chineses cities with a high-speed network. Juniper was chosen to help build it through its M and T routers.

The project is in a trial phase, but if it works out Juniper could reap huge benefits from the results.