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CHINA.
China is seen as an outsourcing
destination of the future. It has a large pool of
talented professionals, offers significant cost
competitiveness & lower attrition rates compared to
India.
China has more than 6,000 software
services providers. However, three-quarters of them have
fewer than 50 employees and less than ten have more
than 2,000 employees. Though, the revenues have been
rising rapidly less than 10 per cent of multi billion
dollar Chinese software revenues come from exported
service.
India, on the other hand, has less
than 3,000 software companies, but at least 15 ~ 25 of
them are giants, each employing more than 2,000 workers.
And some of these companies (Infosys, TCS and Wipro)
have garnered international recognition and a global
clientele.
China's, relatively lower English
speaking skills, less developed infrastructure in
comparisons to major competitors like India, shortage of
expert resources for managing global processes &
deliveries, lack of knowledge on the operational ethos
of global organizations, have been the inhibitors of the
export growth. Traditional reluctance of Chinese
industry, to make heavy marketing investment overseas
has also been a factor.
Chinese premier Wen Jiabao visited
Bangalore in April this year, to attract Indian Service
providers to China. And indeed he was successfull,
nearly 18 Indian Service providers have opened up in
china, which includes some of the leading companies like
Cognizant Technology, Infosys, Tata Consultancy Services
and Wipro. Others are seriously
considering.
The Indian companies would catalyze
China's IT export growth, enable Chinese software
industry to attain higher standards, gain the requisite
expertise and experience to manage global
process and deliveries.
The Chinese government in the
last couple of years, has also stepped up its efforts to
improve the infrastructure, and introduced English
courses in schools.
All of this would certainly help
China to cash in on the Outsourcing market and offer a
significant threat to India in the ITES domain, in the
years to come.
To know more information on China -
the possible structures under which off shoring can be
done, taxation issues, data protection please contact me
or download the information using the link :
http://www.prglolinks.com/OffShoreFacts.asp
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