outsourcing

China or India?

Filed in archive Intelligence on July 28, 2004

It's natural to compare India and china. Both countries are seeing rapid modernization of their economies thanks in part to a strong focus on education and a keen interest in technology.

A recent article published in an Indian newspaper mentions that China may well catch up with India as the world leader in IT offshoring services.

However, if that is to happen, China has a few disadvantages to contend with:

1. Poor English skillsCommunication in English has proven to be a barrier between first-world entrepreneurs and the many mainland Chinese laborers who accept offshore IT projects. However, Infosys chairman N R Narayana Murthy reports that "China is making extraordinary efforts in bridging the gap in English." In just three short years, this barrier might find itself weakening.

2. Project experienceNoticeably, China has not been getting as much media exposure in the IT offshoring sector as India. Projects are certainly being offshored to China, but we have little news of how successful they are. Favorable reviews of Chinese service providers are rare -- if any can be found.

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Tags: outsourcing  china  english  india  best  china+india  personal+finance  hedge+funds 

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