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Why Indian Outsourcing Is Ahead Of China & Asia


  • Why Indian Outsourcing Is Ahead Of China & Asia

There is no doubt that India is the outsourcing capital of the world. With over 1500 outsourcing firms in India providing small, medium and large scale outsourcing functions to companies abroad, India is in an enviable global leadership position when it comes to outsourcing.

After the Satyam debacle and the recessionary trend in the global economy, the outsourcing industry did get a jolt but was quick to recuperate. Most Chinese firms took this opportunity to malign the Indian outsourcing industry and woo away a few of the Satyam clients. Well, it is an opportunity that the Chinese outsourcers did not want to lose and took full use of; but that definitely does not in any way undermine India’s position as the numero uno service outsourcing nation.

Let us see, what are the paradigms that helps India firmly retain its position as the outsourcing “King of the world” defeating China and other nations.

1. Language benefit – The 200 hundred years of British rule and the Indian obsession with the English language has proved to be a boon in disguise for the outsourcing industry. In India, primary kids begin learning the nuances of the English language and are compulsorily taught English right up to graduation. English is the widest spoken language in India and all business transaction take place in English. In the Asian scenario India is the most English friendly language in the region.

Whereas, China and other Asian countries like Thailand, Japan and Korea stress on their national language for all communication, making English a secondary language; India has a huge advantage in having a vast talent pool of fluent English-speaking young people.

2. Education and skill set – With over 2500 hundred Universities as compared to only 500 in China, India is far ahead in education and skilled manpower; giving its competitor’s a real tough challenge.

3. Quality edge – The Indian work force is highly reliable and can deliver world-class quality while ensuring rapid delivery due to the international quality and security standards that are adhered to in the call center outsourcing services business.

4. Governmental support – The IT boom and the staggering revenue generation from this sector has made the Indian government very supportive to the needs of the industry. The government gives a special thrust on the development of this sector thus helping the outsourcers put their best foot forward in service providing.

  • Government has given high-speed international private internet circuits to the big outsourcers thus ensuring better delivery standards.
  • It has granted Income tax and customs exemptions for export of IT enabled services and software.
  • Government has enhanced its investment in IT infrastructure
  • It has given consent for private internet gateways
  • The government has approved several key foreign investment proposals in the IT and IT enabled services to allow for tremendous growth in this sector.

And most of all India is reaping the benefits of the “First mover advantage”! Way back in 1999 during the Y2K scare, it was Indian firms that began the trickle of outsourcing which has now become a torrent and has left all its competitors far, far behind.