India Compared to Other
Outsourcing Destinations

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India and China - Fighting the Outsourcing Battle


Till a couple of years back, the raison d` etre for judging the quality of the outsourced services has undergone humongous transformation. From simply being faster, smoother, cheaper, the effective service offering now calls for creative solution tailoring and flexible business models. Emerging outsourcing destinations couple with newer technologies are set to etch the new rules for survival and victory in the outsourcing industry. The battle for the outsourcing throne has been on since quite some time with both the countries raking heavily in foreign investment.


Even though the truth remains that the Indian outsourcing industry rests majorly on the US economy, India still manages to clinch a massive 65 % of the global software outsourcing business and 46% of the service outsourcing industry. Even though the picture improves for outsourcing in China, with the government relaxing the foreign investment policies, the Chinese outsourcing market still remains small scaled and scattered.


Taking on the Chinese Dragon


When compared, India scores high when it comes to sharing a culture compatible with that of the west. This is reflected in the gradual transformation in the nature of outsourcing services that India has been providing. Moving from simple support and maintenance services, India has bagged both small and large scale turnkey projects.


Let’s take a look at some of the other distinctive differences that makes India lead the list outsourcing destinations.


  • Moving with the evolving outsourcing trends, the Indian outsourcing industry is more focused towards offering business and knowledge process along with consultancy services for the SMBs as compared to their Chinese counterparts. The Chinese outsourcing industry is more focused towards product and software development.
  • The English speaking population in India is much higher than that of China and the preference in the market has been set way back. To compete with the established market preference, the Chinese counterparts have to ramp their language skills to that level.
  • India as an IT Outsourcing brand is another major factor that emerging outsourcing destinations have to counter.
  • India’s take on Intellectual Property laws are quite similar to their western counterparts thereby creating a favorable value proposition in the outsourcing market way before its Chinese counterpart.
  • India holds a major share in the global web development market that forms the backbone of outsourcing services. In comparison to this, China is still in the development phase.
  • India’s legal system has been modeled on the western ones thereby creating an immediate sync with the western requirement. The Chinese legal system is complex and is yet evolving.
  • When it comes to process maturity, nothing can beat the Indian process tenaciously developed over a period through extensive research and development.