White Paper Comparing China/India Software Outsourcing
I have just published a new white paper called “Why Indian Software Outsourcing Companies Are Outsourcing to China”.
The white papers covers the reasons why the Indian companies are coming to China, which mostly have to do with how tapped out the infrastructure in India is, the shortage of human talent, and lack of hardware infrastructure in India and how long it takes to set up in India.
China has good educational institutions in the tier two and three cities, which is why multinationals are expanding to those cities. I have not even heard anyone talk about India’s tier two and tier three cities.
Have you?
This means that India’s technology centers are highly concentrated, and because of severe competition from the leading IT service providers such as IBM, Accenture and EDS, they are under severe pressure to find talent.
Increasingly, the place they are going to find this talent is in China.
You can download this free PDF after registration here.
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Tags: Accenture • business • China • EDS • ibm • india • IT • outsourcing • software • talent
Prakashd said,
December 17, 2007 @ 7:39 am
Hi Paul,
Firstly, this is an insightful to give the paper giving the inside perspective of how China and its different level of cities and companies are gearing up for tapping the IT software services marketplace.
Couple of observations :
1. In India too there is second and third level city talent available which is moveable to a desired location : and India companies are tapping this.
2. Both communication and infrastructure while they are just appropriate (it is again a question of using the same benchmark to rate two countries - which is not available) :: there is both improvement and investment in it to become available in near term. There is a ‘pull’ pressure too and not just a ‘push’ by IT companies.
3. The business model of Indian and Chinese companies may be different and their approaches too :: but like you pointed out there is scope for alignment and collaboration to dominate the marketplace.
4. There are likely to emerge newer business models in software outsourcing to encapsulate the outsourcing of software development from India to China based on expertise levels and components of software development lifecycle. This will mean Indian and chinese companies joining hands instead of competiting and Indian companies moving to offshore called China too!!
5. I am sure we will also see talent movements soon from Indian companies to chinese companies as they emerge as opportunities to further international exposure that one seeks.
Prakash
prakash.dogra@gmail.com
plin said,
December 23, 2007 @ 9:39 am
Hi Paul,
I enjoyed reading this paper as it provides a lot of insights and perspectives on China’s service potential. One thing I like to note regarding SWITCH companies are generating 16 billion in revenue each. If you look at the earning statements, it is more reasonable to say they generated 16 billion in revenue combined.