China’s outsourcing market seen closing gap with India

By eGovAsia Editors | Sep 27, 2010

Thumbnail: 

MELBOURNE – China’s outsourcing market may well soon be as strong as current leader India’s and could eventually overtake it, according to Ovum, but neither country can rest on its laurels.

In a new report, the independent technology analyst claims that even though the industry itself continues to grow, India’s share of the market is in decline and China is already providing substantial competition as the world’s outsourcing powerhouse in terms of footprint, awareness and capability.

“Both countries are often touted as the low-cost delivery location of choice, with many non-domestic vendors investing millions of dollars to set up operations in multiple locations in both countries,” Jens Butler, Ovum principal analyst, said. “Add to this China and India’s growing influence as global centers of political and economic power, and it appears to be a two-horse race to the finish.”

However, according to Ovum, each market must be considered as a delivery location on an individual contractual demand basis rather than as a broad brushstroke, as each has socio-, political- and economic-competitive and comparative advantages.