ZDNet UK


Skip to Main Content

ZDNet.co.uk - Winner of Best Business Website 2007
  1. Home
  2. News
  3. Blogs
  4. Reviews
  5. Jobs
  6. Resources
  7. Community
  8. My ZDNet

 

ZDNet UK RSS Feeds


Outsourcing Toolkit

China to overtake India in offshoring by 2011

Farihan Bahrin ZDNet Asia

Published: 03 Jul 2007 13:44 BST

  • Email
  • Trackback
  • Clip Link
  • Print friendly
  • Post Comment

Affordable rent, low-cost labour and population literacy are the main reasons why companies still prefer to set up their delivery centres in Indian cities uch as Mumbai and Bangalore. But this offshoring trend is likely to change in the near future, according to a study by IDC.

The analyst group forecast that Chinese cities will soon overtake their Indian counterparts as top destinations for offshore global delivery by 2011, based on the results acquired from its Global Delivery Index (GDI).

The GDI compares 35 cities in the Asia-Pacific region as potential offshore delivery centres based on a set of criteria such as labour and rental costs, language skills and turnover rate. Cities covered by the index include Adelaide, Bangalore, Dalian, Hanoi, and Kuala Lumpur.

Competition

Blogger at Large competition
Blogger at Large

The deadline's fast approaching on our contest to win a trip to San Francisco and a Centrino Pro laptop to blog from the Intel Developer Forum. To enter, just start posting entries to our On the Road group blog.

Read more +

According to IDC research manager for Asia-Pacific BPO Research, Conrad Chang, what differentiates the leading cities from the rest is "the focus on deal-clinching factors", including agent skills and political risk.

"There are different risk factors to consider when evaluating outsourcing, offshoring, onshoring, and nearshoring," explained Chang in a statement on Tuesday. "Some factors are obviously more critical than others."

Chang also noted that while Indian cities scored high on the criteria set by the GDI, the picture could well be different four years from now.

Although the top-ranked Chinese cities — Beijing, Shanghai and Dalian — trail their Indian counterparts in the GDI this year, they are expected to overtake the competition by 2011.

IDC attributed this to China's massive investments in areas favourable towards offshoring, such as infrastructure development, technical skills and internet connectivity.

  • Email
  • Trackback
  • Clip Link
  • Print friendlyPrint with Konica

Did you find this article useful?
1 out of 3 people found this useful



Company/Topic Alerts

Create a new alert from the list below:






Discussions

wydeboi wydeboi

Microsoft makes me cry

Monday 13 October 2008, 3:36 AM

3 comments
roger andre roger andre

Unwittingly Working For Google.

Sunday 12 October 2008, 10:49 PM

6 comments
roger andre roger andre

Skype Spying Debacle

Sunday 12 October 2008, 6:43 PM

1 comment

Featured Talkback

In association with Intel
Software development for instance can be off shored with a perceived reduction in development costs but the resulting code is rarely of good quality and there is much greater expense in reworking and support over the life of software developed in this way. As a consultant who has to deal with off shoring on daily basis I very often see no savings at all over the lifetime of a software product, and in some cases actually see projects costing a fortune to rework.

By: pround

Read full story:
Offshoring behind UK tech-labour divide