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Created by : Malika , Business Analyst, Essar Group Of Companies  | 11 13 2010 06:56:17 +0000
Industry : IT ServicesFunctional Area : India(Markets)
Activity:  637 views;  last activity : 02 28 2011 09:52:10 +0000

China's outsourcing industry is steadily closing the gap with leader India, according to a research done by a Canada based firm.

ICT research and advisory firm Canada-based XMG Global said in its study that China is closing 2010 with $35.76 billion or 28.7 per cent share of the global outsourcing industry, while India maintains its lead capturing $54.33 billion or 43.7 per cent of the total.

Assessing the industry's achievement, China is gradually narrowing its revenue gap from India with a huge 30 per cent growth compared with India's 14 per cent.  Do you think China will steal the top position from India for being the top destination for BPO??

 
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Yes, it will happen, currently what's happening in India is With increase in cost of living, rising inflation will lead to good hikes in company pushing the salary curve up. This will lead to Big companies to look for cheaper market. Today India, by end of 2020 it would be philipines and Thailand. End 2030 its Africa. Indian firms like TCS, Infosys, wipro have a targeted plan to expand the team in china with estimated employment for over more than 1 lakh in next 3 years.  But replicating Indian model of Outsourcing will be very difficult for others as the quality man power is not there elsewhere.


By Malika , Business Analyst, Essar Group Of Companies  11 13 2010 06:56:17 +0000
 
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China has much larger infrastructure than India. They have literacy rate of 91%, we have only 65%. They have now a huge programme for english education. Even philipines is better than India now. So instead of focusing on bpo's India should focus on moving up the value chain. Business models for bpo's will become unsustainable.
By Abhijit Anand Prabhudan, Admin/Facilities Manager, Ca*****  | 12 11 2010 15:28:09 +0000
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The way China is moving it is possible. They are learning English now which is India's strength. In a year or two I guess they will really give us tough competition and may even overtake. India's advantage of low cost is slowly being negated by inflation and increasing cost. Soon it may not be possible to get resources at the cost which we are getting now. Hopefully we should take a close look and find measures to see that we stay ahead.


By Ravindra Patil, Director - Marketing, Ultraliant Infotech Pvt Ltd  | 12 11 2010 12:35:38 +0000
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Definitely YES. China becoming a threat in all the aspects. Look at the number of students approaching US for education. China got a massive manpower and once students gets education from international institutions, they will definitely be capable of handling the off-shore businesses & assignments. It will definitely shake the India's current position in many services areas.


By Nilesh Jain, Project Manager, A Leading Media/Telecom Co.  | 11 16 2010 11:59:36 +0000
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not only the bpo's malika china is trying to takeover india in all the major feilds and it's evidence is it's younger generation.you can find out now in all the overseas maximum students in best top 10 universities  are chinese i.e poppulation that is of chinese students which was one day indian's cup of tea so, in the power feilds also basically in power plants you can see maximum orders are placed to chinese based power companies, so if we are giving foods to there mouth then it is us who have to remove there waste.


By jyotiranjandash , junior manager commisioning of turbine and auxiliaries, jindal power limited  | 11 16 2010 00:35:48 +0000
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It is not just BPOs but the entire ITES sector that needs to pull up its socks before it is too late. When this revolution started in India, we had two main advantages - English and a large pool of talent. On both fronts, we are losing ground. Enough empirical evidence is available to suggest that countries like the Philippines and Thailand are catching up too and not just China. These countries have Cultural, Administrative, Geographic and Economic advantages over India. As for trust, one has to only look at the overall macro-scenario in India and the mega scams occuring one after the other to realize we are moving towards a huge trust deficit. Unless we take measures on this front, and simultaneously invest heavily on education and innovation, we may find the sand slipping from under our feet sooner than we may care to imagine.


By B V Krishnamurthy, Chief Academic Advisor and Distinguished Professor, RIMS  | 11 14 2010 11:52:26 +0000
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Definitely No, India Having English speaking, skilled human resources in plenty, High conscious towards quality
By Shankar , CEO/MD/Director, Infosearch bpo Services  | 02 28 2011 09:52:10 +0000
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India leads Global outsourcing. It is not due to cheap labor. It is due to High quality that Indian software companies produce. If we consider cost and Quality we can say we get quality at a less cost considering Indian bpo's. China is not like that cost and quality are at a same status, if u want quality u should pay more.
By Syam Sundar. Bheemireddy, M.E/M.Tech/MS student, Vellore Institute Of Technology (VIT), Vellore  | 11 15 2010 14:16:45 +0000
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Not yet... The average age of china is 29 years... and china is not english proficient unlike india. so, by the time they get the hang of english, their average age would be 35 years. that is not a competition for india from any angle which will be 23 at that corresponding point in time!!
By Bharath Iyer, Project Manager, Photon Infotech  | 11 15 2010 06:56:49 +0000
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Sorry Malika,

The wheel of fortune may change over as you say, from Phils to Thai's to Africa. But, if you consider the criteria," only Cheap". Who stops them to go right now?. Mere cheap is not the main criteria, there are scores of other matters such as technical knowledge & skill, Efficiency in completion of project, Quality of performance, Infrastructure, Political climate, the Language, Of course not the least, the trusted partnership in business etc.

The potential of India will never go waste. If this road is blocked, there will be an another avenue opened.

Technology transfer means exchanging skills among the countries that does not say that India will go devoid of business. Ever-growing tech-development will keep it's horizon widened for ever and India will , surely, scoop it's fortune.


By KALIYAMOORTHY , Oil & Gas Area Coordinator, Undisclosed  | 11 13 2010 16:40:47 +0000
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May be not ...
By shivabharathy , Webmaster, Organic Apex  | 11 13 2010 08:15:23 +0000
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