India Takes on the Chinese Dragon

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When outsourcing first began, companies looked for services that were fast, seamless and cheap. Today, years later, these preferences have changed. Companies who now wish to outsource no longer go by cost, but look for creative solutions and flexible business models. Most companies, when first introduced to outsourcing have to make a difficult choice between the world’s two leading outsourcing locations, India and China.

Since both the countries rank heavily in foreign investment, there has always been a battle for the outsourcing throne. If your company is outsourcing for the first time, then you would soon have to choose between these two nations. Should you outsource to India or China? Which outsourcing destination is better and why? If you are thinking on similar lines, then read on to find the answers to these questions.

Here are seven distinctive differences that have given India a competitive edge over China:

  1. India has always stayed abreast with the latest outsourcing trends. India has always been focused on offering BPO (business process outsourcing), KPO (knowledge process outsourcing) and other consultancy services. China on the other hand has been focusing only on software/ product development
  2. The Chinese have not been able to keep up with their Indian counterparts when it comes to speaking English. Research surveys have proved that India has a higher number of English speaking professionals when compared with China. The Chinese on the other hand are yet to ramp up their language skills
  3. Just as China is well-known for their manufacturing capabilities, India has always been known as a trusted IT outsourcing destination. China, along with other outsourcing destinations has not been able to complete with India for IT and software services
  4. India as an outsourcing destination continues to hold a large share in the global web development market, which forms the backbone of offshoring services. When compared with India, China has still remained in its development phase
  5. India abides by a full-proof legal system that is modeled on the western legal system. The Chinese on the other hand follow a complex legal system that is still in its evolving stages
  6. When compared with China, India has always been a favourite among outsourcers. Currently India holds 65% of the global software outsourcing business and a whopping 45% of the international service outsourcing industry
  7.  Unlike China, India’s culture has always been more compatible with the US and UK. This cultural compatibility has transformed the outsourcing services that India has provided. From simple maintenance and support services, India has moved on to providing turnkey projects on a large scale

Which outsourcing destination do you prefer and why? Share your thoughts or questions with us in the comments box below. We love to hear from you.

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