Monday, April 30, 2007

China beats India on Outsourcing

As of now, China and India are the two biggest player in the field of Outsourcing. These two countries share some similarities in their success. India and China are both vast nations with a large human capitol. The population in both countries exceeds 10 billions. Therefore, unexpensive labor supply is abundant. It is what the more developed nations needed--unexpensive labor cost. Second, many highly skilled technology workers are in India and China. With the advancement in modern communication, engineers in India and China can be hired to work for companies overseas very easily. However, India has its language advantage over China. Indian workforce is very much fluent in English. As a result, India got majority of call center operations outsourced to them. On the other hand, China is lacking in the English language skill which is highly desired by the oursourcers. However this is changing since Chinese government changes its school curriculum to stress the importance of learing English started from elementary school. In the next 10-15 years, China will have a fluent English speaking workforce to compete with India. And more importantly, China has better infrastructure than india which makes it a winner in outsourcing.

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