For business, rough economic times make the outsourcing of Information Technology an even more critical area of discussion for the businesses. There has been a great deal of debate on whether a shift in the global outsourcing of Information Technology is occurring. The India has a long been known for its dominance in the field, however the China, which plays a leading role in the outsourcing of manufacturing is making a strong headway in the industry and may soon pose a major threat to India’s supremacy. One such of the corporate strategy is a global outsourcing, the new management models and business strategies have evolved since the onset of the globalization where in it is receiving more attention than ever due to its effectiveness in cutting costs.
The global outsourcing can be defined as a strategy that allows corporations to redesign, redefine and reshape organizations by transferring the management and day to day execution of a business function to an external service provider. It can generate enormous benefits, there are two countries that stand at the forefront of the global outsourci8ng movement. India which is considered the mecca for the outsourcing Information Technology services and China which has a strong reputation in the outsourcing of manufacturing work.
India’s economy has developed through the promotion of the internal consumption rather than on exports. The India made the decision to focus on Information Technology expertise early on, it is also made a developing competency in the English language as a nation wide. India’s top 10 Information Technology make up approximately 45 percent of the entire global market. The companies Tata, Infosys and the Satyam enjoy the worldwide reputations and the attract and land multinational deals every year. With Western management, in addition to English language competency and Information Technology expertise, the trust in those companies and in India as the go-to-country for the Information Technology outsourcing has grown , this is because the nation successfully combines a low labor cost.
The China has a long been known for its low cost of the labor and it is evolving infrastructure and the country has attempted to develop its economy by focusing on exports as opposed to the growth through the internal consumption. The China is a classic example of an emergent economic power. China is concentrated on a practical business manufacturing. The government is aware of the value of diversification that has continuously sought other strategies to ensure growth and has undertaken efforts to support to other economic sectors particularly its Information Technology industry.
The Chinese government is making a significant effort to heighten the Information Technologies industry’s appeal to a foreign companies and investors. China’s international deals focus mainly on the product development, but is has a conducted a great deal of testing for the Information Technology projects as well. The China has mostly handled a low-end relatively uncomplicated Information Technology application but it can and it does manage a mid-sized applications, primarily orders from Japan and Korea. The country desperately hopes to land a multinational deals in oder to prove itself as a leader in IT outsourcing.
REFERENCE:
http://www.ibls.com/internet_law_news_portal_view.aspx?s=sa&id=1727
http://gbr.pepperdine.edu/2010/08/it-outsourcing-china-grasps-for-the-lead/
