India Worried About Software Outsourcing Industry By The Chinese Catch Up

By Himfr Ivy

American movies, “Transformers,” the chatter of the Indian operator impressed many viewers, it also reflects India’s outsourcing service industry has been closely linked with the lives of Americans. Recently, with the Indian outsourcing industry known for some nervous, because China attaches importance to and encourage the outsourcing industry’s move to bring a guess – that China will not squeeze the Indian outsourcing services industry under the throne?

Last month, India’s largest outsourcing firm Tata Consultancy Services Group, announced the company’s number of employees in China to double. Think that they are Indian outsourcing companies uneasy performance. Reported in the next few years, the pace of China’s outsourcing business is expected to grow faster than India. A multinational accounting firm executives said, “China will appear the Indian outsourcing industry’s growth rate previously.” “India Times” are recent reports of “China’s IT industry challenges” of the title, said the Chinese government has increased the outsourcing of support, after the Indian outsourcing industry in the international competition will be difficult as before invincible up.

However, analysis of CNN, said such concerns were exaggerated in India, because China’s outsourcing industry is still relatively small scale, but also more scattered. The article said China’s IT services exports last year was only 9.6 billion U.S. dollars, compared to 49.7 billion U.S. dollars in India. The company, for example, China’s largest software outsourcer Neusoft Group revenue last year was 6.18 million, but less than Tata Consultancy Services as of March 31 this year, the previous fiscal year revenue of 1 / 10. In addition, to date, has not a Chinese outsourcing company Tata Consultancy employs approximately 1 / 10, currently a total of 160 000 TCS employees.

India’s outsourcing industry is the main driving force of economic development. According to statistics, including software and service outsourcing, including the Indian outsourcing industry more than 2.3 million jobs created, value-added share of gross domestic product of India 7%, accounting for India’s total exports Jinsi Cheng. At present, India has to undertake 65% of the global offshore software outsourcing business and 46% service outsourcing business.

Software development costs, 70% of the cost of human resources, low and high-quality human resources is the success of Indian software outsourcing industry, an important factor. India has a natural advantage in English, while nearly 3,000 secondary schools in India, more than 1,000 colleges and universities offer different levels of information technology, professional courses, also relies on private and private institutions and software companies to implement the overall training of personnel, therefore, India Most software professionals have come from professional training institutions.

Recently, the Chinese Government to give strong support to the outsourcing industry, including tax incentives and preferential policies, their objective is to follow the example of India’s development experience, and create numerous employment opportunities. In addition, the Chinese government has also proposed to build 10 Juyou internationally competitive outsourcing industry center, encourage 100 multinationals Jiang service outsourcing to China, and Fazhan 1000 to service the global market, outsourcing services, Shang Ge Ge.

Unlike India, China has a huge potential domestic market. China IT service industry accounted for only 13.8% of the entire IT industry market share, however, this share will continue to grow, because the Chinese government is taking more effective measures to promote local enterprises to enter the outsourcing industry.

Now it seems that China’s outsourcing service providers in Europe and the United States and other countries continue to receive orders, which the market has been India’s traditional territory. Last year, China’s largest 10 companies outsourcing services market in Europe and the United States have increased revenues, even more than the initial start-up performance of Japanese and Korean markets still outstanding. For example, the article said HiSoft is China’s third largest offshore outsourcing service provider, in June this year in the U.S. Nasdaq market, its international customers include AIG, Citigroup, Microsoft and so on.

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