Outsourcing Destination India Vs. World
Uploaded by socialmediavirtualemployeecom on Nov 30, 2011
India is the world's favorite outsourcing destination although there are other countries from the developing nations who are also on the outsourcing radar. However, if a comparative study were to be made between India on one side and countries like China, Philippines and Vietnam on the other, some revealing facts come to light. India alone commands 65% of the world’s BPO offshore outsourcing market. The country also has one of the highest numbers of ISO-9000 software companies and the outsourcing industry booms all over the large country.
India also has one of the largest talent pools in the world, churning out around 3.1 million graduates each year – highly qualified men and women in fields as diverse as medicine, IT, law, finance, writing, graphics designing, and much else.
Perhaps the biggest thing in favor of outsourcing to India is that language can never be barrier to effective communication. All educated Indians speak English. India is one of the leading players in the world as regards Information Technology. The Indian economy is among the top ten economies in the world and has a stable government that supports outsourcing.
China is slowly growing as an IT outsourcing destination for those looking for another low-cost alternative to India, but the biggest disadvantage is its manpower that lacks fluency in English. China's outsourcing industry is still in its fledgling state, with start-ups still lacking senior managerial skills. The huge cultural divide between China and the US and other western countries is the huge cultural incompatibility.
Philippines dominates the Business Process Outsourcing (BPO) industry, thanks to its vast manpower that speaks fluent English. The call center industry comprises 80% of the outsourcing industry in the country. SEO, IT and animation are also gaining popularity as outsourcing fields.
Vietnam is fast emerging as a promising offshore destination for software outsourcing and for fulfilling other IT needs of businesses.
Its labor cost is economically attractive, with IT outsourcing being almost 30 percent less expensive than India and 50 percent less expensive than Eastern Europe (source: NeoIT 2006 and Ukrainian Hi-Tech Initiative 2007).