Monday, October 8, 2007

India Vs China- Business Process outsourcing

There is no doubt that India in last few decades has invested on its skilled man power pool and has become a hub of IT. From 1990, India is a center for the BPO as a next IT step. Today, India is the hub for process outsourcing, having the clients from countries like US and UK. China, is also rapidly gaining popularity on other hand India has very minute edge over China India has more people speaking the English language than the US and UK combined and there it makes a difference because English is the language which covers and being spoken in most of the countries.

Talking about the comparison of two countries in BPO industry, the name which comes to everyone’s mind are India and China. Though these two countries are the flashing names in this industry but when it comes to comparison then India is definitely ahead with few points. The few points can be summoned up as:-

In the year 2006 the size of IT service industries in India was around $ 30 billion whereas when it comes to china their size was approx. $12 billion.

In the education rate as well it is estimated that in the next two years china colleges will graduate around 200000 IT professionals annually whereas when it comes to India, they produces around 30000 engineers and 100000 IT professionals annually and not only that India has institutes mushrooming up in metros and towns grooming out quality BPO work force. These institutes provide the efficient and effective knowledge of BPO.

Apart from all these facts and figures India is having more advanced business skills as compared to China as they have got the limited experience serving western IT clients and India has better business skills and a decade of experience serving Western IT services clients (still working on the areas of improvement).

The other important area where china is lacking is the customers/ clients. China is dealing only with Japan whereas India is dealing with the countries like US and Europe.

Talking in terms of Global reach in India local players have set up shop in the U.S., Latin America, Eastern Europe, and China, whereas in china they have made little expansion outside of China, except through acquisition or merger.

One point where both the countries are having equilibrium is the Technology Infrastructure. Both the countries are having top-notch IT infrastructure within technology parks and on major IT offshore software development.

1 comment:

Unknown said...

Hi Arun, Saravana here...
Hats-off for your great effort.
The way of communicating the message is really good.