123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Computers >> View Article

Offshore Outsourcing Ties Between China & India

Profile Picture
By Author: John Parker
Total Articles: 11
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Ask anyone: China places only second to India when it comes to offshore outsourcing desirability. Operational costs may be cheaper in China, but as we have discussed in earlier articles, some aspects of doing business in that region come with considerably higher risk.
A recent study by global research firm McKinsey tells us that China is inferior to India specifically when it comes to IT services.
Revenues from information technology services may be rising in China, but they are still barely half of India's $12.7 billion a year. The study also points out that despite lower costs, operating margins in Chinese software companies average only 7 per cent, compared with 11 per cent at similar companies elsewhere.
The McKinsey team, which interviewed executives from 32 Chinese software companies and analysed corporate data for the study, notes that management of talent is another weak link. Most do little to develop their employees and very few use stock options, training programmes or other incentives to build talent.
The study also reveals an interesting point: while China has over 8,000 software providers, ...
... three-fourths of those companies have less than 50 employees - and only five have more than 2,000 employees. This might well be a move to prevent unionization, thus keeping China attractive to foreign investors.
The competition between China and India is fierce. One can perhaps say that the Chinese government has accepted India's supremacy, and treats it as a mentor in some cases.
However, Chinese software firms have also recognized the potential of India not only as a teacher, but also as an outsourcing destination.
A month ago, China established the Sino-India Cooperative Office. This government division is staffed by 12 software experts, and is meant to woo the four India-based software giants TCS, Wipro, Infosys and Satyam, into expanding their operations in China, especially Beijing.
The Shenzhen government also inked a deal with Pune-based RPG company Zensar Technology Ltd. This deal created the Center of Excellence (CoE), an organization which would provide learning materials and work experience to China's software professionals.
This deal would also enable some 1,000 Chinese software programmers to fly to India for specialized training. The end goal is for the city of Shenzhen, with its grand Shenzhen Software Park, to become the outsourcing capital of China.
Source: www.offshoring-digest.com/index.php?p=146 This article is powered by A-1 Technology, an offshore outsourcing company.

Total Views: 260Word Count: 384See All articles From Author

Add Comment

Computers Articles

1. What Identity Governance Really Means In Modern Enterprises
Author: Mansoor Alam

2. Strategies For Successful Site Selection In Clinical Trials
Author: Giselle Bates

3. Simplifying Business Purchases With Smart, Reliable Procurement Solutions
Author: suma

4. How Businesses In Dubai Are Scaling Faster With Modern Erp Software
Author: Al murooj solutions

5. How To Choose The Right Weapon Tracking System: 7 Must-have Features
Author: 3PL Insights

6. Power Bi Tutorial For Beginners: Learn Business Intelligence Step By Step
Author: Tech Point

7. Spark Matrix™: Data Governance Solutions
Author: Umangp

8. How Prediction Market Software Development Is Transforming Data-driven Decision Making
Author: david

9. Naming Development & Management
Author: brainbell10

10. Mysql Database Development & Management Services
Author: brainbell10

11. Mongodb Development & Management
Author: brainbell10

12. Spark Matrix™: Conversational Automation
Author: Umangp

13. How Care Home Software Helps Improve Daily Operations In Care Homes
Author: Centrim Life UK

14. Pc & Tech Stores: Latest Trends In Hardware And Accessories
Author: Jack Williams

15. The Infozed Blueprint: Powering The Modern Workspace
Author: suma

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: