The Rational Outsourcing Blog

Saturday, May 26, 2007

News article on India vs. China quoting yours truly

See this story entitled “India being Bangalored by China” which quotes me. It came out in Daily News and Analysis which is one of the leading newspapers in Mumbai (India’s financial capital). Here are a few choice quotes:
hard facts too make the point forcefully that India, today’s undisputed leader in outsourcing services, is gradually being, well, Bangalored by China. The Global Outsourcing Report, which ranks countries based on their opportunities, costs, and risks in relation to IT offshoring, predicts that by 2015, China, currently placed second, will have taken over the No 1 spot from India.
In Vespa’s estimation, Indian leaders — like Infosys and TCS — are so far ahead of their Chinese counterparts that even 10 years from now, their standing won’t be seriously threatened.
"If we look at the top 10 companies in the outsourcing market in 10-15 years, I have no doubt that six or seven of them will still be Indian… But China as a whole will have taken over from India as the leading outsourcing destination."
Sengupta too believes that the Indian BPO is at a defining moment. "Clayton Christensen, the author of Innovator’s Dilemma, describes how the integrated steel companies in North America were rapidly disrupted and eventually driven out of business by steel mini-mills.
Likewise, the British used to dominate the motorcycle industry, but the Japanese disrupted them very quickly. In both cases, the incumbents were initially overconfident about their strengths relative to the disruptors until it was too late. I fear that the same is happening today as regards Indian attitudes to Chinese BPOs.
If India wakes up to this threat, I believe it can compete effectively. If it does not, then eventually it will cede its leadership in the global service market and whether that happens in five years or ten, it will be catastrophic for the Indian economy."


  • good article for oursourcing

    By Blogger rahul, at 8:27 AM  

  • We all know the facts that India is a popular in terms of outsourcing because of their low cost price. But, starting 2011 the leader of Outsourcing Industry is now the Philippines. Most of the US, UK and Australia companies spread the news that it is now a top market in Outsourcing.

    By Anonymous Call Center Outsourcing, at 12:23 AM  

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