Who to Outsource in Today's Competitive Marketplace? An Idea About Where India and China Stand?

by Helen Steve - Date: 2007-02-15 - Word Count: 487 Share This!

Outsourcing! Dazed of its popularity? But do you really know why outsourcing is the most highlighting trend in the IT industry today? And who are the major contenders? Let's have a smart idea about outsourcing and its ongoing emergence. In simpler words, to concentrate more on the core competencies and target business, global companies drive their software jobs to low wage countries like India which provides not only the low priced quality product on time but also a healthy experience and long term business relationships. Despite all hues and cries, outsourcing is still emerging as a preferred practice in developed countries to take advantage of resources and trained manpower of offshore countries like India, China, Philippines, etc. And it would really be a strategic howler for any company or organization today not to think about outsourcing as a strategic and significant initiative to thrive & even survive in current marketplace.

Almost every vigilant company is considerate about outsourcing bearing in mind the need of the market, for high quality work done at competitive prices. Now question is who to go for? There are so many contenders for providing services at low prices. But there are many other things beyond prices nowadays that are considered. Be it knowledge processing or software outsourcing, the Chinese tech economy has been racing forward, but neighbor India has achieved an easy lead in the field of software outsourcing and other Hi-tech jobs coming from offshore European and other global companies.

Recently, one of the consulting firms revealed its analysis saying that fragmentation of China's software-outsourcing industry is a limitation. Out of over 8000 software service providers in China, only 7-8 have more than 2000 employees. On the contrary, India has fewer than 3,000 software services providers but more than 15 of the companies have employee strength beyond 2000, including major software, like Infosys Technologies, Tata Consultancy Services and Wipro Technologies. Furthermore, revenue from information technology services in China is just about half of India's $12.7 billion a year.

It is completely true and hard fact that outsourcing has shared the jobs of European countries but same way these global organizations are contended with the low priced and high quality services from Indian service providers. Overall, defenders advocates outsourcing that actually help the US economy. No doubt, China is having a workforce of talented minds but things, like lower number of employees, communication and language problem hampers the way to outsourcing. Apart from great English speaking strength, the processes followed by Indian companies are performed in a rigorous environment assuring, testing and confirming the strength and solid quality of the products and services.

Well, outsourcing software and other services and projects to lower-wage nations is in some ways believed as an evolution of the overseas flow of manufacturing work. Today, if China has been a manufacturing leader, India has appeared as an all rounder and the king in providing services, with a significant number of offshore development centers.

Related Tags: software, outsourcing, software outsourcing

The writes specializes on software outsourcing and various other issues related to online business like ecommerce, web marketing, application developement and other topics. For more tidbits on these matters, visit the website http://www.infysolutions.com

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