India Vs China - The IT Outsourcing War
Introduction
According to McKinsey studies, China will take several years to pose a threat to India in IT services, notably in its bid to grab a larger share of the global software outsourcing market.
In the past, there have been several speculations about China capturing the major share of Indian IT outsourcing market. But as leading market researchers probe further into the changing economies of both China and India, the studies reveals positive results for the Indian Software Industry. China has several critical problem areas to counter before it becomes a threat to the Indian IT supremacy. Even though the revenue from IT sector for China has increased, it still lags behind the Indian IT revenue. In fact, according to the reports, it is still half of India's share, which is $12.7 billion a year.
The main reason that outsourcers in U.S. rely on Indian software providers is the maturity and stability of its outsourcing market and advanced telecom infrastructure. China also faces a shortage of technical English-speaking resources. Countries like Philippines, Singapore, Russia and Ukraine, recently surfaced to provide outsourcing alternatives but the political instability is a major drawback for them.
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