China May Surpass India in Outsourcing

According to the independent technology analyst, Ovum, India’s share in the outsourcing market is declining and China is providing significant competition in this arena. Chances are high that China will overtake India eventually. However, each market should be considered as a delivery location according to the individual contractual demand basis rather than broad based  software development because each has socio-economic and political environment, Ovum said in a statement.

“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”, said Jens Butler, principal analyst. “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,” Butler added.

Stability and governmental influence should play an important role in the future because of the five year plans and the associated federal infrastructure investment of Chinese Government. On the contrary, India has province-led support for its home-grown free-market organizations. The analyst firm also continued that the focus on such investment and direction should continue in the long term basis because there are a strong alternatives to these current heavyweights of the services delivery world such as the Philippines, South Africa and Latin America.