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Global Sourcing: India still top outsourcing country, but will lose to China by 2012!

This one is pretty optimistic about India:

Two other Indian cities also made it to the top 10 list--New Delhi edged out Manila for the number two spot, while Mumbai dropped three places from last year's list to seventh.

Jenna Griffin, senior research analyst for global delivery services research at IDC Asia-Pacific, told ZDNet Asia that Bangalore and New Delhi were attractive due to existing infrastructure, large quantity of skilled workers as well as competitive pricing. She noted, however, that the appreciating rupee was eroding the cost arbitrage.

Auckland and Beijing made significant progress over last year, moving up five and three notches, respectively. Griffin said Auckland's ranking was influenced by factors such as greater government support, an increased emphasis toward a digital economy and currency depreciation.

On the other hand, the investment into Beijing's infrastructure and the environment for the upcoming Olympic Games has sharpened the city's competitive edge, she added.

Griffin said: "With prices on the rise in India, locations like Beijing with established infrastructure and lower costs will be in demand. Beijing also has a highly skilled workforce, supported by a strong education network."


ZDnet link

but this one (from 2007) clearly shows that China will overtake India in a couple of years:

IDC has developed a new Global Delivery Index (GDI), which compares 35 cities in the Asia/Pacific as potential offshore delivery centers, based on a comprehensive set of criteria such as cost of labor, cost of rent, language skills and turnover rate. In its inaugural findings, Indian cities are highly ranked, while Chinese cities are on the rise and closely nipping at India's heels. Examples of cities covered include Adelaide, Bangalore, Dalian, Hanoi, and Kuala Lumpur among many others.

"There are different risk factors to consider when evaluating outsourcing, offshoring, onshoring, and nearshoring. Some factors are obviously more critical than others and the GDI takes that into consideration" comments Conrad Chang, Research Manager for IDC's Asia/ Pacific BPO Research. "Often times, what differentiates leading cities from the rest is their focus on deal-clinching factors, and the GDI weighs that more heavily than other factors."


Link from 2007

Comments

  1. India definitely is a favoured destination for outsourcing companies. But China as rightly pointed out is all set to become the next biggest player. An interesting article on the Asian connection in outsourcing at http://outsorcerer.com/blog/?p=24

    ReplyDelete

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